GSK sees dip in second-quarter sales

GlaxoSmithKline has reported group sales of £7.6 billion for the second quarter of 2020, marking a slip of 2% from a year ago, reflecting expected disruption from COVID-19.

Sales from the drug giant's pharmaceuticals dropped 5% to £4.1 billion, but it was the vaccines unit that was hardest hit, plummeting 29% to £1.1 billion during the period.

On the plus side, consumer healthcare revenues reported solid growth, rising 25% to £2.4 billion.

Also, total earnings per share came in at 45.5p marking growth of 100% following profit on disposal of Horlicks and other consumer healthcare brands.

“As expected, our performance this quarter was disrupted by COVID-19, particularly in our Vaccines business, as visits to healthcare professionals were limited due to lockdown measures,” said GSK's chief executive Emma Walmsley.

“Overall, we are seeing good underlying demand for our major products and are confident this will be reflected in future performance when the impact of COVID measures eases.”

She went on to say: “We continue to believe that multiple options will be needed to prevent and treat COVID-19 and are working at pace with our partners to develop potential adjuvanted vaccines and therapeutics to fight the virus.

“At the same time, we have made strategic investments in next-generation vaccine and antibody technologies, most recently through our new collaboration with CureVac.”

The company has upheld its guidance for 2020 adjusted EPS maintained, but noted that the outcome is dependent in particular on timing of a recovery in vaccination rates.