GlaxoSmithKline's Shingrix zooms toward blockbuster status despite tight supply

GlaxoSmithKline has several new drugs beefing up its top line as Advair generics march inexorably toward market. But no rollout has compared to Shingrix, the new shingles vaccine that’s trounced expectations and quickly leapt onto a blockbuster trajectory. 

Shingrix sales of £286 million for the quarter blew past analyst expectations of £203 million, according to a note from Jefferies analyst Ian Hilliker, bringing its top-line contribution to £563 million so far this year. Thanks to that outperformance, GSK hiked its sales forecast for the vaccine to £700 million to £750 million this year.

And that, in turn, was the biggest reason why GSK pumped up its 2018 earnings expectations, regardless of whether the company faces Advair generics this year.

Other new drugs, Juluca to treat HIV and Trelegy for COPD, brought in £37 million and £42 million for the quarter, respectively. Overall, GSK brought in £8.1 billion in sales, up 3%, and earnings amounted to 28.8 cents per share. Its new, higher earnings outlook calls for EPS growth of 8% to 10% at constant exchange rates.

But GSK's positive numbers came at the same time as some pipeline setbacks. On Wednesday, the company reported three trial failures in its respiratory unit, and an R&D executive told S&P Global Market Intelligence the company is mulling an exit in the field to focus on cancer.

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