GSK Ups Earnings Forecast Amid Strong Cancer and HIV Treatment Sales

British drugmaker GSK has revised its annual earnings and sales forecasts upwards, driven by stellar performance in cancer and HIV treatments. Despite underwhelming vaccine sales, the company's strong second-quarter results, spearheaded by CEO Emma Walmsley's strategic focus on infectious diseases, buoyed the outlook for 2024.

British drugmaker GSK raised its annual earnings and sales forecasts on Wednesday following strong second-quarter performance, particularly in cancer and HIV treatments. However, the company's shares were pressured due to weak vaccine sales.

CEO Emma Walmsley's strategic focus on infectious disease drugs and vaccines, including the new RSV vaccine Arexvy, has yielded positive results. Despite this, the sales of Arexvy and shingles vaccine Shingrix fell below market expectations.

GSK shares dipped 1.7% early in the trading session, following a reduced forecast for 2024 vaccine sales attributed to a U.S. public health agency's recent guidance limiting the recommended age for RSV vaccine recipients. Nonetheless, the company anticipates robust sales of cancer, HIV, and specialty medicines to offset this shortfall, projecting a 2024 EPS increase of 10% to 12%.