European pharmaceutical giants GSK and Roche leaned on vaccine and pharma sales, respectively, to offset massive Covid declines. But GSK stock and Roche stock fell Tuesday.
Sales of GSK's Covid treatment Xevudy plummeted 98% to 31 million British pounds, or roughly $38.6 million. Last year, the Food and Drug Administration pulled its authorization for the monoclonal antibody also known as sotrovimab because it couldn't handle new variants. Similarly, sales from Roche's diagnostics division plummeted 28% excluding the impact of exchange rates.
Overall, GSK's sales toppled 8% in constant currency to 6.95 billion pounds — about $8.67 billion, based on today's exchange rate. That easily beat analysts' call for $8.07 billion. Adjusted profit came in at 92 cents a share, according to FactSet. Analysts predicted GSK earnings of 83 cents.
On today's stock market, GSK stock slumped 2.7% to close at 35.93.
GSK Stock: Shingrix Sales Climb
Revenue from GSK's vaccines jumped 15%, excluding the impact of exchange rates, and hit about $2.54 billion in the first quarter. GSK stock analysts projected $2.37 billion from the business. But overall specialty medicines tumbled 33% due to the Xevudy decline. Sales of general medicines inched 9% ahead.
The company's biggest moneymaking vaccine is Shingrix, which aims to prevent shingles. Shingrix generated around $1.04 billion in first-quarter sales, increasing 11% in constant currency. In the specialty medicines unit, GSK's HIV treatments surged 15% to about $1.83 billion. GSK also posted strong growth for respiratory inhaler Trelegy. Sales jumped 28% to almost $580 million.
GSK confirmed its outlook for 2023. Excluding the impact of exchange rates, the company expects sales to increase 6%-8% and for adjusted earnings to increase 12%-15%.
Covid Weighs On Roche Stock
Similarly, Roche said demand for its Covid tests slumped in the March quarter, leading to a total 3% decline in sales to 15.32 billion Swiss francs — or about $17.2 billion. Analysts covering Roche stock expected $16.57 billion in sales.
Pharmaceutical sales jumped 9% to about $13.14 billion. But diagnostic sales plummeted 28% to around $4.07 billion.
Roche expects full-year sales to decline by a low single-digit percentage due to a sharp drop in Covid sales of about $5.6 billion. Excluding that, Roche expects "solid sales growth" in both its pharmaceuticals and diagnostics divisions.
Roche stock skidded 2.9% to close at 38.68, below its 200-day moving average. Shares are forming a cup base with a buy point at 43.42, according to MarketSmith.com. Likewise, GSK stock closed in on a floor at its 50-day line.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
