Topline
GSK shares rose on Wednesday after the pharma giant upgraded its profit guidance for the second time this year amid booming demand for its new vaccine for respiratory syncytial virus (RSV).
Key Facts
GSK shares rose around 3% during early trading in London.
The boost comes after the company said it expects sales for 2023 to rise between 12% to 13%, up from earlier predictions topping out at 10%.
Adjusted earnings per share for the year are also expected to rise between 17% and 20%, up from previous forecasts of between 14% to 17%, GSK said.
The company said its optimistic outlook is largely driven by the success of Arexvy, the company’s recently released RSV shot that is approved in the U.S. to protect older adults against the ubiquitous and sometimes deadly infection, as well as strong performance from its shingles vaccine.
High demand for Arexvy has netted GSK around $850 million in sales during the third quarter—reportedly double what analysts were expecting—and the company said annual sales could exceed $1 billion.
The majority of these sales were in the United States and CEO Emma Walmsley praised the vaccine’s “outstanding U.S. launch,” adding that the company’s “longer-term outlook also continues to strengthen,” with progress in its vaccines pipeline, HIV portfolio and “significant new prospects in respiratory.”
Key Background
This year marked a breakthrough in medicine as the world’s first RSV vaccines made it to market after decades of hard research and false starts. RSV is ubiquitous—most people are infected by the time they reach two years old—and while it will only cause mild, cold-like symptoms for the majority of people, very young children, older adults and people with underlying conditions like a compromised immune system are at risk of serious, potentially fatal, disease. GSK’s Arexvy was the first to secure U.S. approval in May, with Pfizer’s Abrysvo scoring a regulatory green light weeks later. Both shots have been approved to protect older adults ages 60 and GSK is running trials that have shown promise this might be lowered to 50 in the future. Pfizer’s Abrysvo has also been approved to protect young infants from RSV by vaccinating mothers during pregnancy, the first and only maternal RSV vaccine on the American market (a protective antibody shot is available but in short supply). GSK’s Arexvy is outperforming Pfizer’s Abrysvo in the U.S., with the latter pulling in revenues of $375 million during the third quarter. GSK said its shot is sold in all major retail pharmacies in the U.S., where it accounts for two-thirds of retail vaccinations for RSV. The country’s largest pharmacy chain, CVS, only carries GSK’s vaccine for older adults and has previously declined to comment on why.
Big Number
1.4 million. That’s how many people of the 83 million adults at risk of RSV in the U.S. have been protected by Arexvy this year to date, GSK said. Research suggests the shot provides protection for two RSV seasons. The company said it expects sales of the shot to track similar products protecting against flu.
FDA Approves First RSV Vaccine For Kids—Given To Pregnant Moms—Here’s What To Know (Forbes)
Pfizer RSV vaccine lags GSK’s as head-to-head competition underway (Reuters)
RSV Vaccine Shows Hopeful Early Results In 50 To 59-Year-Olds, GSK Says (Forbes)
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