GSKNYSE: GSK

GSK's Q3 earnings beat estimates but sales miss the same. The company also lowers its outlook for vaccine sales for the rest of the year due to weak U.S. demand.

GSK plc (NYSE:GSK ) Q3 2024 Earnings Conference Call October 30, 2024 8:00 AM ET Company Participants Emma Walmsley - CEO Luke Miels - Chief Commercial Officer Deborah Waterhouse - CEO, ViiV Healthcare Julie Brown - CFO Jeff McLaughlin - IR Tony Wood - Chief Scientific Officer Conference Call Participants James Gordon - JPMorgan Kerry Holford - Berenberg Jo Walton - UBS Simon Baker - Redburn Atlantic Graham Parry - Bank of America Emmanuel Papadakis - Deutsche Bank Richard Parkes - BNP Paribas Peter Welford - Jefferies Operator Hello, everyone. Welcome to today's call and webcast.

GSK is on track to achieve its guidance for 2024, with its Q3 2024 and 9m 2024 results today. For 9m 2024, the company's turnover growth at 9% is at the upper end of the guidance range and core EPS growth of 14% exceeds it. While the numbers slumped in Q3 2024, this was expected, especially as reported earnings absorbed Zantac related payouts. They are unlikely to impact full year figures, however.

U.K. drugmaker GSK on Wednesday cut its vaccine sales guidance for the year after what it called lower-than-expected demand.

Dedicated followers of GSK PLC (LSE:GSK, NYSE:GSK) will have been aware of analysts' growing unease around the performance of its vaccine franchise - backed up by prescription data. Third-quarter results effectively confirmed the numbers crunchers' worst fears (and some) as sales of RSV jab Arexvy and Shingles treatment Shingrix undershot forecasts as they came in at £188 million and £739 million respectively.

GSK lowered its 2024 vaccine sales forecast for the second time this year on Wednesday, hit by weak demand for its respiratory syncytial virus (RSV) and shingles vaccines.

-- Head-to-head clinical results indicate a potential best-in-class combined efficacy & safety profile of non-adjuvanted bivalent RSV vaccine candidate (SCB-1019) -- -- RSV neutralizing antibodies for Clover's non-adjuvanted SCB-1019 matched GSK's AS01E-adjuvanted AREXVY in older adults, while demonstrating significantly better tolerability compared to AREXVY -- -- Clover plans to initiate clinical trials in 2025 evaluating SCB-1019 in an RSV re-vaccination setting and as part of a respiratory combination vaccine -- SHANGHAI , Oct. 28, 2024 /PRNewswire/ -- Clover Biopharmaceuticals, Ltd. (Clover; HKEX: 02197), a global commercial-stage biotechnology company committed to unleashing the power of innovative vaccines to save lives and improve health around the world, today announced positive additional immunogenicity and safety data in older adult & elderly subjects from its Phase Ⅰ trial evaluating SCB-1019 – the company's non-adjuvanted bivalent RSV prefusion-stabilized F (PreF)-Trimer subunit vaccine candidate based on Clover's Trimer-Tag vaccine technology platform – compared head-to-head with GSK's AS01E-adjuvanted RSV vaccine (AREXVY).

IDE275 (GSK959) development is progressing into First-in-Human Phase 1 clinical trial(s) for the treatment of MSI-High solid tumors, representing IDEAYA's 5th potential first-in-class clinical program MSI-High prevalence in endometrial, colorectal, and gastric cancers is ~31%, 20%, and 19%, respectively, highlighting the market potential of IDE275 (GSK959) IDEAYA to receive a $7 million payment for IND acceptance, and potential future aggregate milestones of up to $950 million. IDEAYA has a 50/50 US Profit Share and an 80/20 (GSK/IDEAYA) global research and development cost share SOUTH SAN FRANCISCO, Calif.

GSK's major growth drivers, Shingrix and Arexvy, along with recent legal progress, make its current undervaluation unjustified, leading to a "Strong Buy" rating. The company's diversified portfolio includes vaccines, specialty medicines, and general medicines, with significant contributions from HIV and oncology treatments. Despite legal and regulatory challenges, GSK's strategic partnerships and international expansion, particularly in China, enhance its growth potential.