Core operating profit, a measure which strips out certain one-off items, dipped 9% to GBP1.72 billion, though net profit, at GBP538 million, was 34% higher than a year ago. Also, data demonstrated that the vaccine effectively prevents subsequent chronic neuropathic pain, known as postherpetic neuralgia (PHN), the most common severe complication of shingles.
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Consensus forecasts now point to Shingrix annual sales of $595 million by 2020, according to Thomson Reuters Cortellis, while Goldman Sachs believes it has the potential to achieve peak sales of 1 billion pounds ($1.5 billion).
Core earnings per share in the quarter was 23.0 pence, down 13% at constant currency and 18% at actual rates, hit by the strength of sterling against the majority of the company’s trading currencies, partly offset by the weakening of sterling against the U.S. dollar.
But Chief Executive Andrew Witty said the group was on the road to recovery after a revamp of its business via a $20 billion asset swap with Novartis that has raised GSK’s exposure to consumer healthcare products.
An experimental heart drug from GlaxoSmithKline failed to work as hoped in the first part of a large clinical trial, the company said on Tuesday, dealing a blow to its pipeline of new medicines. “The benefits of the recent (Novartis) transaction are becoming evident in our sales and earnings performance and we have made good progress on our restructuring and integration programmes during the quarter”.
Shares in Glaxo were up 3.9% at 1,420.00 pence Wednesday afternoon. Revenue from the pharmaceutical division, its biggest business, declined 7% following the sale of the oncology business to Novartis AG, while vaccines surged 32% and consumer health-care climbed 55%.
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Analyst projections had taken into account the continuing decline in global sales of GSK’s blockbuster asthma drug Advair.
