GSK hiked its guidance for the second time this year on the back of a strong launch for its respiratory syncytial virus vaccine. But GSK stock slipped early Wednesday.
The vaccine, dubbed Arexvy, brought in 709 million pounds in third-quarter sales. That's about $862.1 million in sales, based on today's exchange rates. That beat forecasts, according to Reuters, and trounced the $375 million Pfizer reported Tuesday for its rival vaccine, Abrysvo.
RSV typically causes cold-like symptoms, but can be deadly in newborns and older adults. The duo gained Food and Drug Administration approvals for their shots for adults age 60 and older in May.
Bearishly, sales of GSK's blockbuster shingles vaccine, Shingrix, clocked just 825 million pounds in sales — about $1 billion — below GSK stock analysts' forecast for 851 million. Shingrix sales jumped 15% in constant currency. Shingrix is currently GSK's biggest moneymaker among vaccines.
On the stock market today, GSK stock slipped 3.1%, closing at 34.58.
GSK Stock: Guidance Boost
During the September quarter, GSK's sales increased 10% to 8.15 billion pounds excluding the impact of exchange rates. That comes out to roughly $9.89 billion, and easily came in north of GSK stock analysts' forecast for 7.73 billion pounds, according to FactSet.
Excluding Covid-related sales, revenue climbed 16%, GSK said in a news release.
Adjusted earnings also climbed 17% in constant currency to 50.4 pence and topped expectations for 46 pence.
For the year, GSK now expects sales to climb 12% to 13%, up from its prior forecast for 8% to 10%. The company also calls for adjusted earnings per share to jump 17% to 20%. Previously, GSK expected 14% to 17% growth in adjusted profit.
GSK also cut three drugs from Phase 1 testing. They include two treatments for cancer and a treatment for a bacterial infection.
GSK stock fell below the lower boundary of a flat base with a buy point at 36.21, according to MarketSmith.com.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
