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GSK sees falling vaccine sales take shine off earnings
The drugmaker said the overhaul will fund a £400 million Cambridge campus and help offset a patent loss on its HIV treatment.
- On Wednesday, GSK shares fell 7% after the British pharmaceutical firm reported a 2% decline in vaccine sales to £2.6 billion for the third quarter, driven by weakening demand for Shingrix and Arexvy.
- To finance a new £400m research campus, GSK is closing its main R&D hub in Stevenage and relocating to Cambridge as part of a plan to secure £1.9 billion in annual cost savings.
- Despite vaccine weakness, core operating profits rose 5% to £3.08 billion for the third quarter, with specialty medicines sales increasing 15% and cancer treatments jumping 23%.
- Chief Executive Luke Miels faces pressure to build new drug pipelines before the HIV treatment Dolutegravir loses exclusivity, as analysts warn the vaccine business "is pointing towards tougher trading in the coming quarters."
- Analysts at Shore Capital maintain a "buy" rating, stating GSK is "shedding legacy perceptions of being a perennial disappointment" while pursuing longer-term growth ambitions following its corporate demerger.
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GSK shares fell to their lowest level in six months following the drugmaker's third-quarter earnings report, as a decline in vaccine sales raised concerns about growth prospects, Bloomberg reports.
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Key takeaways Although vaccine manufacturer GSK exceeded third-quarter profit expectations, the share price fell. The decline in vaccine sales weighed on investor sentiment. The pharmaceutical company reported that revenue from its RSV vaccine Arexvy and its shingles vaccine Shingrix fell by 24 and 5 percent, respectively. This was largely due to decreased demand in the United […]
Coverage Details
Total News Sources10
Leaning Left2Leaning Right1Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
L 29%
C 57%
14%
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