GSK Plc Q2 FY2024 earnings call

• Business Performance: Strong Q2 sales growth (13% to £7.9 billion), core operating profit up 21%, core earnings per share up 17%. Upgraded full-year guidance. - Pipeline Progress: Positive Phase III data for depemokimab in respiratory, progress in oncology and HIV pipelines, advancements in vaccines like Arexvy and Shingrix's dementia-related data. - ESG Efforts: Partnerships in malaria elimination and low-carbon inhaler development.

Vaccines: Sales grew 3% in Q2, excluding COVID solutions. Shingrix had global growth but was down 4% in the quarter, with sales of £832 million. Arexvy had nearly 8 million vaccinated since launch, with seasonality affecting Q2 demand. Meningitis vaccines Bexsero and Menveo saw growth. Specialty Medicines: Including HIV, grew 22% in Q2. Nucala, Benlysta, and oncology products like Ojjaara and Jemperli showed strong growth. General Medicines: Grew 12% in Q2, driven by Trelegy's 41% sales increase.

• Upgraded full-year guidance for 2024: expects sales growth 7-9% and core operating profit growth 11-13%. - Long-term outlook: 2026 sales growth over 7%, core operating profit growth over 11%, and sales over £38 billion by 2031.

• Short-term impacts on vaccines due to factors like channel inventory, CMS rule changes, and demand challenges. - Litigation risks related to Zantac.

Q: On China and U.S. Shingrix performance A: Luke Miels discussed China partnership and U.S. Shingrix factors, including channel inventory, CMS rule changes, and demand challenges Q: On TIGIT mechanism A: Tony Wood discussed TIGIT's differentiated data in oncology Q: On Arexvy contracting A: Luke Miels and Tony Wood discussed Arexvy's contracting, data, and future plans Q: On HIV guidance A: Deborah Waterhouse discussed HIV growth, IRA impact, and long-term portfolio plans Q: On Zantac litigation A: Emma Walmsley discussed defense of litigation related to Zantac