GSK stock rocketed Wednesday after the pharma titan raised its 2031 sales outlook to north of $50 billion.
That puts the British drugmaker in leagues with pharmaceutical companies like Pfizer and Novartis. Analysts forecast a respective $57.7 billion and $56.1 billion from the duo in 2030.
Specifically, GSK called for more than 40 billion pounds in 2031 sales, up from its previous outlook for north of 38 billion pounds. That translates to $50.07 billion, up from $47.56 billion. In 2030, the latest year for which FactSet provides estimates, analysts currently project $45.52 billion in sales.
In response, GSK stock surged 8.2% to close at 37.70.
GSK Stock: Mixed Fourth-Quarter Report
The strong outlook overshadowed a mixed fourth quarter.
GSK's core earnings came in at 58 cents per share, above expectations for 49 cents. But earnings fell year over year. Sales edged a single-digit percentage higher to $9.48 billion, but missed forecasts for $9.54 billion, according to FactSet.
Notably, U.S. vaccine sales declined in the fourth quarter and full-year 2024 due to lower demand for Arexvy. Arexvy is GSK's vaccine for respiratory syncytial virus, or RSV. RSV causes coldlike symptoms in most people, but it can be serious or deadly in babies and older adults.
The Advisory Committee on Immunization Practices updated its recommendations last year. An RSV shot is now recommended for people age 75 and older, and for people age 60 to 74 with a heightened risk of severe RSV. But, in 2023, the committee recommended RSV vaccines for all people age 60 and older.
Sales of Shingrix, GSK's well-known shingles vaccine, fell 4% in constant currency to about $1.06 billion. International sales helped offset a decline in the U.S. where GSK says it's struggling to activate "harder-to-reach consumers." Still, that beat GSK stock analysts' call for $979.7 million.
For the year, GSK guided to 3% to 5% sales growth. The company also projects core earnings growth of 6% to 8%. Analysts forecast earnings of $4.54 a share and $42.64 billion in sales, up 14% and 9%, respectively.
