GSK shares fall as vaccine sales decline in third quarter

Summarised from 4 outlets · Updated 28 Oct, 12:20 · Archive

GSK shares fell sharply after vaccine sales dropped two per cent to £2.6bn in the third quarter despite higher overall revenue.

GSK shares fell sharply on Wednesday after the British pharmaceuticals firm reported declining vaccine sales that overshadowed otherwise strong quarterly results. The company posted £8.9bn in revenue for the three months to September 30, five per cent higher than the previous year and one per cent above analyst expectations. Shares fell up to seven per cent in morning trading as investors focused on the vaccine division's performance.

Vaccine sales fell two per cent to £2.6bn, driven by weakening demand for key products. The shingles vaccine Shingrix saw sales fall five per cent, whilst Arexvy, the company's shot for respiratory syncytial virus (RSV), fell 24 per cent, particularly in the United States. These declines offset growth elsewhere, with meningitis vaccines rising 12 per cent and specialty medicines climbing 15 per cent. Cancer treatments also performed well, jumping 23 per cent.

Core operating profits rose five per cent to £3.08bn, exceeding market expectations of £2.93bn. Chief executive Luke Miels said the company remains 'focused on operational delivery, execution and accelerating research and development'. Analysts warned that Miels faces pressure to develop new blockbuster drugs before the company loses exclusivity on its HIV treatment Dolutegravir. One analyst noted that weakness in the vaccine business 'is pointing towards tougher trading in the coming quarters'.

How it is being reported

• GSK shares dive as weaker sales and mounting costs unnerve investorsBritish pharma company reports declining profits amid concerns over looming patent loss of its blockbuster HIV drug Shares in GSK slid on Wednesday despite the UK drugmaker reporting better-than-expected financial results, as investors were unnerved by weaker vaccine sales, restructuring charges and its overall outlook. Britain’s second-biggest pharmaceutical company reported a 19% decline in pre-tax profit to £1.9bn in the July to September quarter and £318m of restructuring charges, with more to come. Continue reading...Guardian World · 28 Oct, 12:44
• GSK sees falling vaccine sales take shine off earningsThe drugs giant revealed vaccine sales fell 2% to £2.6 billion in the three months to September 30 as demand waned for its shingles and RSV jabs.Evening Standard · 28 Oct, 11:53
• GSK sees falling vaccine sales take shine off earningsThe drugs giant revealed vaccine sales fell 2% to £2.6 billion in the three months to September 30 as demand waned for its shingles and RSV jabs.Independent Business · 28 Oct, 11:53
• GSK shares slump as vaccine sales fallGSK shares have fallen the steepest since April, after the British pharmaceuticals giant reported a sharp drop in vaccine sales. The FTSE 100 medicines titan slumped up to five per cent in early trading on Wednesday, as investors looked past the group’s higher-than-expected revenue. The London-based group posted a £8.9bn turnover in the third quarter, [...]City AM · 28 Oct, 10:01

In this story: GSK · Luke Miels · AJ Bell · Shore Capital · IG

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