GSK sales fall as vaccine demand slumps during lockdown
Revenue at drugs giant Glaxosmithkline (GSK) fell below analyst expectations today as sales of its blockbuster Shingles vaccine contracted sharply in the second quarter.
Turnover dropped three per cent to £7.6bn, a little below forecasts of £7.7bn, while earnings per share fell back to 19.2p, lower than the 20.1p predicted.
Shares in the FTSE 100 blue chip fell 2.7 per cent this morning.
The decline was mainly attributable to a 39 per cent fall in vaccine sales, which dropped from £1.6bn in the same period last year to £1.1bn today.
Sales of Shingrix, which has been a consistent money-spinner for GSK recently, fell back 16 per cent to £323m.
The firm said that the decline was down to “expected disruption” caused by the coronavirus pandemic, as well as people stockpiling pain and respiratory medications.
It maintained its guidance for the full year, but said that the outcome was “dependent in particular on timing of a recovery in vaccination rates”.
Separately today GSK signed a deal to produce 60m doses of its potential coronavirus vaccine, which it is developing in partnership with French firm Sanofi, for the UK government.
It added that it was also in discussions with the EU and the US about providing them with the vaccine.
Chief executive Emma Walmsley said: “The fundamentals of GSK’s business remain strong and we are maintaining good momentum on our strategic priorities.
“As expected, our performance this quarter was disrupted by COVID-19, particularly in our Vaccines business, as visits to healthcare professionals were limited due to lockdown measures.
“Overall, we are seeing good underlying demand for our major products and are confident this will be reflected in future performance when the impact of COVID measures eases.”