GlaxoSmithKline Plc on Wednesday raised its annual profit forecast for the second time this year on the back of soaring sales of its Shingles vaccine, sending shares of the British drugmaker up nearly 3%.
The drugmaker now expects full-year profit to be roughly flat compared to last year at constant currency, up from a previous forecast of a fall of 3% to 5%.
Chief Executive Officer Emma Walmsley has set bold plans in motion to rejuvenate GSK, which has included the spin off or sale of a number of businesses since she took over in 2017 and greater focus on the company's pharmaceuticals business.
Sales of Shingrix, launched in 2017, rose 76% to 535 million pounds ($689.9 million), way ahead of analysts' expectations of 464 million pounds, leading vaccines unit sales to rise 15% to 2.31 billion pounds.
Turnover rose 11% to 9.39 billion pounds in the three months ended Sept. 30 from a year earlier.
Adjusted earnings were 38.6 pence per share.
Analysts on average had expected earnings of 33 pence and sales of 9.02 billion pounds, according to a company-compiled consensus of 15 analysts.
The company said the new forecast reflects operating performance, increased investment in research and development as well as a lower expected effective tax rate of around 17% for the year.
GSK shares were up nearly 3% to 1788 pence at 1213 GMT, their highest since May 2013.
($1 = 0.7754 pounds)
(Reporting by Pushkala Aripaka and Ankur Banerjee in Bengaluru Editing by Tomasz Janowski) ((Pushkala.A@thomsonreuters.com; within UK: +44 20 7542 1810, outside UK: +91 80 6749 6633 ; Reuters Messaging: Pushkala.A.thomsonreuters.com@reuters.net; Twitter: @pushkala_a))
