Sales at GSK increased by 10% to £7.4bn in the first quarter of the year, following a boost in vaccine sales during the period.

The British pharmaceutical firm saw its vaccine sales jump by 16% in the opening three months of the year, with sales excluding COVID vaccines increasing by 22%.

GSK also saw its turnover increase by 6% in the first quarter to £7.3bn, while its core operating profit increased by 27%, reflecting strong sales.

However, the group’s operating dropped by 18% in this period to £1.5bn, which it said reflected higher charges for CCL remeasurements.

Chief executive officer at GSK, Emma Walmsley, said: "We have made a strong start to 2024, with another quarter of excellent performance and continued pipeline progress, including positive data read outs for 4 phase III medicines.

"These, together with other R&D achievements, mean we have strengthened prospects for growth in all of our key therapeutic areas this quarter: infectious diseases, HIV, respiratory/immunology and oncology. We expect this strong momentum to continue, and look forward to delivering another year of meaningful growth in sales and earnings in 2024."

GSK said that following these results, it now expects 2024 turnover growth towards the upper part of the 5-7% range.

The group is expecting core operating profit growth of between 9-11%, having previously estimated that this would reach between 7-10%, while core EPS growth is estimated to hit between 8-10%, following earlier predictions of 6-9%.

Healthcare analyst at Quilter Cheviot, Sheena Berry, added: "In light of these results, GSK has revised its full-year guidance upwards, reflecting not only the improved top-line performance but also the favourable outcome of a royalty dispute. Consequently, the company now anticipates higher royalty revenues for the full year than previously projected. It is expected that the growth in the first half of 2024 will outpace that of the second half.

"While Zantac remains a minor concern, there have been no significant updates in this quarter’s results that would alter the current outlook.

"Looking ahead, GSK is mindful of the challenges posed by the impending expiration of a key HIV patent. This anticipated headwind underscores the importance of the company’s ongoing efforts in business development to bolster its pipeline and enhance its product offerings.

"Overall, GSK’s Q1 2024 results highlight a decent start to the year."

---