GSK Lowers 2024 Vaccine Sales Forecast Amid Weak Demand

British drugmaker GSK has cut its 2024 vaccine sales forecast after lower-than-expected sales of its shingles and RSV vaccines, leading to a drop in share prices. Despite missing sales targets, GSK beat second-quarter earnings forecasts and raised its full-year profit and sales estimates.

British drugmaker GSK has revised its forecast for 2024 vaccine sales downward, following weaker-than-anticipated quarterly revenue from its top shingles and respiratory syncytial virus (RSV) vaccines. This adjustment has resulted in a decline in share prices. CEO Emma Walmsley's focus on infectious disease vaccines, including the blockbuster RSV vaccine Arexvy, continues as GSK navigates patent expirations and a drop in revenue from older drugs.

The company reported second-quarter Arexvy sales of £62 million, falling short of analysts' projections of £70 million. Shingrix, another major revenue driver, generated £832 million, also below market expectations. Analysts cited weak demand in the U.S. and lower-than-anticipated benefits from a supply deal with Zhifei in China as contributing factors.

GSK's stock dropped 2.4% despite the company surpassing second-quarter earnings forecasts. The company's decision to lower its 2024 vaccine sales growth forecast follows a U.S. health agency's choice to narrow the age recommendation for RSV vaccines, affecting market expectations. Nevertheless, GSK has raised its profit and sales estimates for the year.