GSK has increased its full-year sales and profits estimates in its second quarter results, after sales of cancer, HIV and other speciality medicines jumped in the period.

The British pharmaceutical firm saw its sales in the second quarter jump by 13% to £7.9bn year-on-year, while its vaccine sales, excluding COVID sales, increased by 3%.

However, sales of Arexvy and Shingrix came in below analysts’ expectations, meaning that the earlier listed vaccines led the sales increase.

Chief executive officer at GSK, Emma Walmsley, said: "GSK's momentum this year continues with excellent second quarter performance, reflecting strong operational execution and the strengthening breadth of our portfolio to both prevent and treat disease. Q2 sales grew in all areas, with specialty medicines in particular benefitting from new product launches in oncology and HIV. In R&D, so far this year, we have secured approvals or filings for 10 major opportunities and reported positive data from seven phase III trials.

"We have also strengthened capabilities in key technology platforms and completed investments to develop new mRNA vaccines, ultra-long-acting HIV medicines and a promising new medicine for severe asthma. All this supports our future growth and confidence to bring meaningful innovation to patients."

Looking ahead, the pharmaceutical firm now expects sales to grow between 7-9%, an increase from between 5-7%.

It added that improved sales performances in its specialty and general medicines are expected to more than offset lower sales growth of vaccines this year.

Equity analyst at Hargreaves Lansdown, Derren Nathan, added: "GSK’s clearly been listening closely to doctors’ orders after delivering its second upgrade in as many quarters. The strong performance was broad-based, although the shingles vaccine Shingrix, which has been a key growth driver in recent years, saw sales drop by 4%. A recent third-party study has raised hopes that the jab could help prevent dementia, but clinical validation is required, and that’s a long path to tread. That’s something GSK is getting better at, with approvals for two other vaccines in the quarter, and strong data for HIV, asthma and cancer treatments.

"The guidance range for both turnover and core operating profit growth has been moved two percentage points to the right. 2024 sales are now expected to rise between 7-9% with core operating profit growth anticipated at 11%-13%.

"The shares look good value at under 10 times earnings pre today’s upgrades, and there’s also a dividend yield of around 4% on offer. Sentiment’s being held back by the ongoing Zantac litigation but once any liability for that becomes clear, there could well be scope for higher pay outs to shareholders."

---