Shingrix sales in the U.S. took a 15% dive in the third quarter. GSK is now the second Big Pharma to report declining vaccine sales, after Sanofi reported a similar decline last week.
GSK’s vaccine business saw a modest 2% year-on-year sales uptick in the third quarter, but a closer look reveals a drastic slowdown of its immunization products in the U.S.
Overall, GSK’s vaccine portfolio brought in £2.678 billion ($3.54 billion) in the third quarter. The bulk of these earnings were driven by the shingles vaccine Shingrix, which worldwide made £830 million ($1.1 billion), growing 13% from the same period in 2023 at constant exchange rates. In the U.S., however, Shingrix sales sank 15% year-on-year, hitting just £256 million ($338 million). By comparison, Shingrix had sales of £297 million ($392 million) in Europe for 48% growth in the much smaller market.
Speaking on an investor call Wednesday morning, Chief Commercial Officer Luke Miels pointed to “macro factors around vaccines” in the U.S. as a reason for this decline, noting that the country will continue to be a “tough” market for GSK’s vaccine business. Miels did not specifically identify what these factors are. In its news release, the pharma blamed the slowdown on “harder-to-activate unvaccinated consumers.”
“Ex-U.S. sales now account for around 70% of global Shingrix sales,” said Miels, who will become GSK’s CEO next year.
The policy landscape in the U.S. has turned hostile to vaccines in recent months, led by Health Secretary Robert F. Kennedy, Jr.’s outspoken skepticism about the shots, though much of his actions have been focused on COVID-19 immunization. Still, hundreds of current and former employees at the Department of Health and Human Services have accused Kennedy of fostering “mistrust in public institutions” and of “spreading inaccurate health information,” particularly about vaccines.
When asked on Wednesday’s call about recent drug pricing policy changes in the U.S., GSK CEO Emma Walmsley refused to go deep into the pharma’s talks with the government, noting only that “we’re engaging very constructively with the [Trump] administration.”
GSK is now the second Big Pharma to report declining vaccine sales, after Sanofi reported a 17% decline in its COVID-19 and flu vaccines for the third quarter last week. Overall, Sanofi’s legacy vaccines business declined nearly 8% in the third quarter to €3.36 billion ($3.9 billion). Another major vaccine maker, Merck, will report earnings on Thursday.
Sales Grow 8%
In the third quarter, GSK brought in £8.547 billion ($11.3 billion) in sales, representing 8% year-on-year growth at constant exchange rates. Of note, total operating profit hit £2.593 billion ($3.43 billion), more than double what was achieved during the same period last year.
Much of the pharma’s strong showing is because of its Specialty Medicines products, particularly the HIV franchise, with £1.944 billion ($2.57 billion) in sales, up 12% from last year.
Standout products include the respiratory drug Nucala, which grew 14% year-on-year to bring in £499 million ($659.6 million) in the quarter, buoyed by its recent approval and launch in chronic obstructive pulmonary disease. Meanwhile, the cancer immunotherapy Jemperli surged 79% in Q3 to earn £230 million ($304 million).
Encouraged by the Q3 results, GSK on Wednesday lifted its sales outlook and now expects total core operating profit to grow 9% to 11%, up from its previous guidance of 6% to 8%.
