British pharmaceutical giant GSK has held firm on its annual group forecasts despite experiencing a decline in vaccine sales, with strong performance in specialist medicines helping to offset the downturn. The FTSE 100 company reported a 2% rise in total sales to £8 billion at constant currencies for the third quarter ending September.
The company’s vaccine division witnessed a significant 15% decline in sales, primarily attributed to a 72% drop in revenue from Arexvy, its respiratory syncytial virus (RSV) vaccine. This decline was largely due to restrictive recommendations from US health officials for individuals aged 60-74 and increased focus on Covid vaccinations amid rising infection rates.
Despite these challenges, GSK’s HIV and cancer treatments demonstrated robust growth. The company’s operating profit experienced an 86% decrease to £189 million, following a £1.8 billion charge related to the settlement of US safety lawsuits concerning its former Zantac medication.
Dame Emma Walmsley, GSK’s chief executive, expressed confidence in the company’s direction, highlighting 11 positive phase III trials reported this year. The organisation is preparing for five major new product launches in 2025, including Blenrep, an innovative cancer treatment, and depemokimab, a groundbreaking long-acting medicine for severe asthma patients.
The pharmaceutical company’s shares responded to the mixed trading update with a 3% decline, falling 44½p to £14.07 on the London Stock Exchange. This movement places the stock down 5% for the year. City analysts at Jefferies suggest potential consensus downgrades of 1% to 3%, despite GSK maintaining its outlook guidance to the midpoint of the range.
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