Sales of GSK’s blockbuster vaccine plummet after problems in the US – BNN Bloomberg

(Bloomberg) — Sales of GSK Plc’s leading vaccines fell in the third quarter after the British drugmaker was hit by limited demand for its shots in the United States.

Arexvy, a vaccine against respiratory syncytial virus, brought in 188 million pounds ($245 million), while revenue from shingles vaccine Shingrix was 739 million pounds, well below analysts’ estimates.

Arexvy was hit by a surprise recommendation from U.S. officials to limit access to adults 75 and older and high-risk patients. GSK wanted the shot to be approved for people over 60. Prescription numbers on Shingrix and Arexvy already indicated slowing sales this quarter, and analysts included those numbers in their models ahead of earnings.

GSK shares fell 4.1% in early trading in London and are now down 16% over the past six months.

Prioritization of Covid-19 vaccinations in the US has also impacted vaccine sales, GSK said in a statement on Wednesday.

Poor vaccine sales have not harmed GSK’s medium- to long-term prospects for Arexvy or Shingrix, CEO Emma Walmsley said on a call with reporters. The drugmaker expects the Arexvi booster shot in three, four or five years, and there is significant opportunity to reach more patients, she said.

Zantac Litigation

Walmsley has bet that GSK’s vaccine business will revive the drugmaker and has also made progress in reviving other parts of pharmaceutical manufacturing. The policy seemed to be working and helped keep activist investor Elliott Investment Management at bay. Now slowing sales of key vaccines have hit stocks that have failed to see the rebound expected when the drugmaker earlier this month settled most cases related to allegations that its old heartburn drug Zantac causes cancer.

The settlement with Zantac meant overall operating profit fell 86%, although core operating profit rose 5%, the drugmaker said.

Earnings per share excluding certain items were 49.7 pence, above the estimate of analysts surveyed by Bloomberg. GSK reported stronger-than-expected sales of some HIV and asthma drugs, helping to offset weak vaccine sales.

The decline in per-share earnings and the reiteration of full-year guidance are “overshadowed by weak performance from vaccines Shingrix and Arexvy, which are likely to reignite growth concerns” as they account for more than 40% of the additional three-year revenue growth, it said. John Murphy of Bloomberg Intelligence in a note.

–With assistance from Chloe Meli.

(Updates with CEO comments in sixth paragraph.)