By Michael Susin


Haleon PLC on Tuesday reported an increase in pretax profit for the first half of 2022, driven by a robust brand performance, and said that it isn't a party to any claims related to the heartburn drug Zantac.

The consumer-healthcare business, which was spun out of GSK PLC and is partly owned by Pfizer Inc., reported pretax profitof 864 million pounds ($988 million) for the six months compared with GBP737 million for the same period a year ago.

First-half revenue rose to GBP5.19 billion from GBP4.58 billion, while organic revenue growth increased 11.6%, consisting of 7.9% volumes and 3.7% price mix, and boosted by a robust product performance with Panadol, Theraflu, Otrivin, Advil and Centrum particularly strong, it said.

The company backed its full-year guidance, with organic revenue growth expected to be in the range of 6%-8%, while adjusted operating margin--which strips out exceptional and other one-off items--is expected to be slightly down from 22.8% at constant currency on last year.

"Whilst navigating the current macroeconomic challenges and uncertainties, positive momentum in our business has continued into the second half. This combined with the strength of the business reinforces our confidence that we are well positioned to deliver on guidance this year and over the medium term," Chief Executive Officer Brian McNamara said.

The company reiterated its medium-term guidance, with annual organic revenue growth target in the range of 4% and 6% and its intention to start an initial dividend payout.

Haleon said that it has rejected requests from Pfizer Inc. and GSK PLC for indemnification related to Zantac litigation in the U.S., given that the joint venture agreement only covers their consumer healthcare businesses. The company added that at that time, neither GSK nor Pfizer marketed Zantac in the U.S. or Canada.

The litigation dates back to 2019 when the U.S. Food & Drug Administration alerted the public that some medicines--including Zantac--included higher than the allowed levels of N-nitrosodimethylamine, a contaminant found in drinking water, soil, and common foods.

Shares at 0705 GMT were up 4.6 pence, or 1.8%, at 264.0 pence.


Write to Michael Susin at michael.susin@wsj.com


(END) Dow Jones Newswires

09-20-22 0341ET