Benzinga | Jul 28, 2021 09:11AM EDT

Vaccine Demand Boosts GlaxoSmithKline's Q2 Sales, Earnings; Maintains FY21 Guidance

* GlaxoSmithKline Plc's (NYSE:GSK) turnover was ?8.1 billion in Q2, up 6% Y/Y (actual exchange rate AER), 15% (constant exchange rate CER).

* Pharmaceuticals sales reached ?4.2 billion, up 3% AER, 12% CER, driven by strong growth in New & Specialty products, favorable US RAR adjustments, and a prior year comparator impacted by destocking of COVID-19 related first quarter additional demand.

* Vaccines sales grew 39% AER, 49% CER to ?1.6 billion, primarily driven by pandemic adjuvant sales, higher demand for DTPa-containing vaccines in the US, and higher demand for Bexsero.

* Vaccines turnover excluding pandemic vaccines grew 16% AER, 24% CER to ?1.3 billion.

* Sales of its meningitis vaccine rose 46%, with shots for hepatitis and diphtheria up 28% as traditional hospital and doctor appointments rebounded from the COVID-19 disruption.

* Adjusted operating margin of 26.7% was 3.7 percentage points higher at AER and 5.6 percentage points higher on a CER basis than in Q2 2020.

* Adjusted EPS was 28.1p, up 46% AER, 71% CER.

* The net cash inflow from operating activities was ?1.3 billion. The free cash outflow was ?316 million.

* Outlook: GlaxoSmithKline reaffirmed 2021 adjusted EPS outlook to decline by mid-to-high single-digit percentage at CER.

* As Shingrix sales are recovering more slowly in ex-US markets, the Company expects vaccines revenue for 2021 to be broadly flat.

* Price Action: GSK shares are down 1.44% at $38.95 during the premarket session on the last check Wednesday.