By Cecilia Butini 
 

GlaxoSmithKline PLC said Wednesday that it expects growth in sales and adjusted operating profit over the next five years to be underpinned by new vaccines and specialty medicines, as it set targets for the medium and long term following the planned 2022 demerger of its consumer healthcare business.

The British pharmaceutical major said it expects to deliver sales growth of more than 5% and adjusted operating profit of more than 10% for the period going from 2021 to 2026, adding that these targets exclude contribution from Covid-19-related revenue.

Adjusted operating margin is seen improving from the mid-20s in 2021 to over 30% by 2026, GSK said.

In the longer term, meaning until 2031, the company said it aims to deliver sales of more than 33 billion pounds ($46.04 billion) at constant exchange rates, which will be achieved by the commercial execution of the company's late-stage pipeline.

The company resulting from the planned spinoff of GSK's consumer healthcare business will prioritize research and development and commercial investment in vaccines and specialty medicines, GSK said. These areas are expected to grow to around three-quarters of company sales by 2026, GSK said.

 

Write to Cecilia Butini at cecilia.butini@wsj.com

 

(END) Dow Jones Newswires

June 23, 2021 06:40 ET (10:40 GMT)

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