UK pharmaceutical giant GSK plc (LON:GSK) has upgraded its annual profit and sales projections for the second time this year, following impressive quarterly sales of its recently launched respiratory drug, Arexvy. The firm now expects a 12% to 13% increase in yearly sales, up from previous predictions of 8% to 10%. This announcement led to a temporary rise of around 3% in GSK shares.
Arexvy, which offers protection for two winter seasons, has been available in the US and other markets since August. It has already surpassed analyst forecasts with Q3 sales reaching £700 million ($862 million), doubling expectations. The company predicts that Arexvy's sales will hit £1 billion ($1.2 billion) this year.
In light of this success, GSK is expanding its treatment pipeline under CEO Emma Walmsley after separating from its consumer-products unit that produced Centrum vitamins. The firm reported a 33% increase in overall vaccine sales, aided by Shingrix, its shingles vaccine, and competition from Pfizer (NYSE:PFE)'s RSV shot, Abrysvo.
A £2.5 billion deal with China's Zhifei is set to boost Shingrix sales further, while plans are also underway to expand Arexvy's eligibility to adults in their 50s. Despite losing exclusivity on some best-selling drugs, GSK's specialty medicines arm, which includes endometrial cancer treatment Jemperli, continues to perform well.
Analysts Adam Barker and Derren Nathan predict vaccines will lead GSK's growth as Pfizer experiences a 42% Q3 sales drop. However, GSK faces costly U.S. litigation with approximately 79,000 Zantac-related cases with most trials set for January 2024.
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