The Q3 2022 earnings season rolls along with CVS Health, GSK and United Therapeutics releasing their latest financials Wednesday morning.
Overall, CVS’s total revenues increased 10%, though the company incurred a $3.9 billion operating loss compared to a $3.1 billion operating income in Q3 2021.
The company attributed this loss to $5.2 billion in opioid litigation charges and $2.5 billion in loss on assets held for sale to write-down its long-term care business this year. During the quarter, CVS and Walmart reached a $147.5 million opioid settlement with West Virginia.
Still, CVS recorded an adjusted operating income increase of $160 million compared to this time last year due to increases in its Health Care Benefits and Pharmacy Services segments.
Perhaps the most significant development for CVS in Q3 was its $8 billion acquisition of Signify Health, which creates and powers value-based payment programs, in an effort to expand into at-home care offerings. The deal, which is expected to ‘further empower’ future plans for CVS, is slated to close during the first half of 2023.
“We delivered another outstanding quarter, and have raised full-year guidance as a result,” CVS CEO Karen Lynch said in a statement. “We continue to execute on our strategy with a focus on expanding capabilities in health care delivery, and the announced acquisition of Signify Health will further strengthen our engagement with consumers.”
For its part, GSK recorded sales of £7.8 billion, total earnings per share of 255.9p and an adjusted EPS of 46.9p. The company’s strongest performers were Specialty Medicines, which reported sales of £2.7 billion, Vaccines, which delivered sales of £2.5 billion, and General Medicines, which reported £2.6 billion in sales.
Looking ahead, GSK raised its sales guidance for growth between 8% to 10% CER and an adjusted operating profit between 15% to 17% CER.
In addition to its earnings release, GSK announced that its older adult vaccine candidate for respiratory syncytial virus was accepted for priority review by the Food and Drug Administration. This news came just after Pfizer unveiled data that found its RSV vaccine was effective in protecting infants against the disease and could be available by next winter.
One of the most interesting developments during the quarter was the spin off of consumer health business unit Haleon in July. A couple months later, Haleon released its first earnings report since the split, highlighted by revenue growth of 13.4% in H1 2022, totaling £5.19 billion, along with an operating profit of £900 million in the first half of the year.
Additionally, Theravance Biopharma announced in September that its board of directors authorized a $250 million capital return program to purchase GSK’s equity stake in the company. Shortly after, GSK reached a $66 million exclusive license agreement for Spero Therapeutics’ late-stage antibiotic asset, Tebipenem HBr.
GSK also named its first female CFO, Julie Brown, who will assume the role in April 2023.
“GSK has delivered another quarter of excellent performance, with strong growth in Specialty Medicines, record sales for our shingles vaccine, Shingrix, and further improvements in adjusted operating profit,” GSK CEO Emma Walmsley said in a statement. “We are again raising our full-year guidance and expect good momentum in 2023, further strengthening our confidence in our performance outlooks, driven by Shingrix global expansion and expected new launches including our new RSV vaccine. We are also making good progress to strengthen our early-stage pipeline and will continue to invest in targeted business development to build optionality and support growth in the second half of the decade.”
Meanwhile, United Therapeutics reported total revenues of $516 million, up 16% year-over-year. The company’s net income also rose 47% to $239.2 million, while its operating income increased to $314.3 million.
United’s lead product was Tyvaso, which generated net product sales of $257.7 million. Despite the top-line growth, United had three products record sales declines, including two, Unituxin and Adcirca, by double digits.
“We are thrilled to report the highest quarterly revenue in our history,” United CEO Martine Rothblatt, Ph.D., said in a statement. “On top of our historic performance, we continue to innovate with the recent launch of the pivotal TETON 2 study of Tyvaso in
idiopathic pulmonary fibrosis, which adds to the four other registration studies we have underway.”
Several other healthcare organizations released earnings reports today, including Seres Therapeutics, Novo Nordisk, Bausch + Lomb, EyePoint Pharmaceuticals and G1 Therapeutics.