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FILE PHOTO: The GlaxoSmithKline (GSK) logo is seen on top of GSK Asia House in Singapore, March 21, 2018. REUTERS/Loriene Perera/File Photo
(Reuters) – GlaxoSmithKline Plc reported better-than-expected first-quarter revenue and earnings on Wednesday, as sales of the British drugmaker’s fast-growing shingles vaccine surged another 60 percent.
Sales of Shingrix, the vaccine launched in 2017, were 357 million pounds in the first quarter, up 61.5 percent from a fourth quarter in which they also doubled.
That pushed GSK’s turnover to 7.66 billion pounds ($10 billion) in the quarter from 7.22 billion pounds a year earlier and above a company-provided consensus here of analysts’ forecasts of 7.56 billion pounds.
Adjusted operating profit was 30.1 pence per share in the quarter versus expectations of 26.1 pence per share.
“We have made a strong start to 2019, which is an important year of execution for GSK, with growth in sales, operating margins and earnings per share in Q1, in line with our expectations,” Chief Executive Emma Walmsley said in a statement.
Since taking over in April 2017, Walmsley has been streamlining GSK’s operations and spinning off or selling units including its consumer health division to focus on expanding its drug pipeline – notably for cancer and HIV medicines – and developing vaccines.
The company, which backed its 2019 forecast of a decline in adjusted earnings of 5 to 9 percent, said its quarterly earnings were hurt by continuing price pressure and other investments in promotional product support, particularly for new launches.
($1 = 0.7654 pounds)
Reporting by Pushkala Aripaka and Ankur Banerjee in Bengaluru; Editing by Saumyadeb Chakrabarty and Patrick Graham
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