GSK Cuts Vaccine Sales Forecast Amid Shingles and RSV Jab Setbacks

British drugmaker GSK revised its 2024 vaccine sales forecast downward due to missed expectations for its shingles and respiratory syncytial virus (RSV) vaccines. Despite a strong performance in other medicines, shares fell as investors reacted to regulatory decisions and market demand uncertainties. CEO Emma Walmsley remains optimistic about long-term growth.

British drugmaker GSK has lowered its forecast for 2024 vaccine sales following underwhelming quarterly revenue results for its shingles and RSV vaccines, leading to a decline in share prices. The company's shingles vaccine Shingrix and the newer RSV vaccine Arexvy both fell short of market expectations, particularly in the United States, where demand was weaker, prompting destocking efforts.

Despite the setback, GSK exceeded overall second-quarter financial forecasts, driven by strong sales in cancer, HIV, and other specialty medicines. CEO Emma Walmsley attributed the vaccine sales dip to short-term factors and expressed confidence in the company's long-term prospects. Walmsley mentioned a U.S. public health agency's decision to tighten age recommendations for RSV vaccinations as a key factor behind the sales forecast revision.

GSK anticipates its core earnings per share (EPS) for 2024 to increase between 10% and 12%, up from its previous forecast of 8% to 10%. The company now projects its annual sales to rise between 7% and 9%, further emphasizing a positive outlook despite the recent vaccine challenges. Shares of GSK have been under pressure as investors remain cautious about the shifting landscape.