GSK ‘firing on all cylinders’ following bumper sales of new RSV vaccine

British pharmaceutical giant GSK upgraded profit guidance for the second time this year following bumper sales of its breakthrough respiratory vaccine.

Chief executive Emma Walmsley said it was ‘firing on all cylinders’ after launching the world’s first RSV jab in the US in signs her turnaround strategy is beginning to pay off.

The comments came as the company reported a 15 per cent jump in operating profit to £2.7billion for the third quarter and a 10 per cent rise in turnover of £8.1billion. 

GSK shares, however, fell 2.4 per cent, or 34.4p, to 1423p.

Walmsley revealed plans to refocus on vaccines and infectious diseases last year, offloading its consumer healthcare division Haleon.

GSK boss Emma Walmsley (pictured) revealed plans to refocus on vaccines and infectious diseases last year, offloading consumer healthcare division Haleon.

The pivot came after GSK fell behind British rival AstraZeneca and US competitor Pfizer to create a Covid jab during the pandemic.

But London-listed GSK is now beating Pfizer in the roll-out of the RSV vaccine. 

Both secured US Food and Drug Administration (FDA) approval in May to provide protection against RSV, which causes cold-like symptoms but can be dangerous for the elderly, babies, and vulnerable people.

Sales of the arexvy vaccine hit more than £700million in the third quarter, well ahead of the £309million abrysvo brought in for Pfizer.

GSK secured two-thirds of all RSV vaccine prescriptions in the US, helped by the fact that it is stocked by the major pharmacy chain CVS.

Walmsley said she ‘welcomed’ competition from Pfizer, which unlike GSK has approval to administer the vaccine to pregnant women. 

‘The larger opportunity remains with the older population. It is a very competitive market, but we are winning two-thirds of prescriptions,’ she said.

‘We are still in the early days, but we are delighted with the launch.’

Arexvy has also been approved in Europe, Canada and Japan. However, it is not available in the UK despite receiving initial approval in July.

Walmsley confirmed GSK is in conversation with the Government over a UK launch, saying ‘keep watching this space’.

GSK also provided an update on sales of its shingles vaccine after signing a £2.5billion deal to distribute the jab in China. 

Shingrix sales hit £800million in the third quarter ahead of the launch of the Zhifei partnership next year.

The company could team up with Zhifei again if arexvy receives approval from health authorities in China.

Following the strong performance of its vaccinations division, GSK said full-year turnover would increase by between 12 per cent to 13 per cent, up from previous guidance of 8 per cent to 10 per cent.

Operating profit growth is now expected to be between 13 per cent to 15 per cent, compared to previous estimates of 11 per cent to 13 per cent.

Derren Nathan, the head of equity research at Hargreaves Lansdown, said: ‘Here, the longer-term outlook looks promising, driven by product launches and expansions, and a strong research and development programme, the success of which will be key to unlocking further value.’

Russ Mould, investment director at AJ Bell, said: ‘GSK has been left in the shadows of its counterpart AstraZeneca – both during Covid when despite its greater vaccine expertise GSK did not have a jab of its own, and in the intervening period.

‘It will hope today’s positive update can represent a step towards restoring its fortunes and getting more credit from a sceptical market.’

This post first appeared on Dailymail.co.uk