Profits slide at GSK as pandemic leads to lower vaccination rates

GlaxoSmithKline (GSK) has revealed that profits slipped over the past three months but said it remains on track to hit its full-year targets.

The major Montrose employer said that profit attributable to shareholders fell by 17% to £ 1.2 billion over the quarter.

Meanwhile, it reported that its turnover dropped by 8% to £8.6bn for the period as it was impacted by lower vaccination rates.

The company said vaccination rates improved over the quarter but were still down year on-year, particularly impacting its major shingles vaccine.

Sales of the Shingrix shingles vaccine, which was its biggest driver of growth last year, tumbled by 30% to £374 million for the period.

Emma Walmsley, chief executive officer of GSK, said: “GSK has responded

well to a challenging operating environment this year with disciplined cost control and strong commercial momentum in key growth products including Nucala, Trelegy, Benlysta, two drug-HIV regimens, Zejula, Shingrix and our priority consumer healthcare brands.

“This, combined with improving vaccination rates this quarter, means

we are on track to deliver within our earnings guidance range for 2020.

“In add it ion , we continue to make good p rog re s s on ou r preparations to separate the group and create two n ew companies – in biopharma and consumer health – which we believe will deliver options for sustainable growth and returns to shareholders.”

GlaxoSmithKline has a large facility in Montrose.