Corporate logo of pharmaceutical company GlaxoSmithKline is seen at their factory in Stevenage, Great Britain, October 26, 2020.
Dado Ruvic | Reuters
GlaxoSmithKline on Wednesday raised its long-term outlook following the successful launch of its new RSV vaccine.
The shot targets the serious and in some cases life-threatening virus posted sales of about £1.2 billion, or $1.5 billion, after only about half a year on the market.
GSK had in November forecast 2023 sales for its shot Arexvy of between £900m and £1bn, following a strong launch in the US.
The launch of the very first vaccines against respiratory syncytial virus from GSK and Pfizer the past year has proven to be a boon for both companies, even though Pfizer saw less sales than its rival.
GSK now expects to generate sales of more than £38 billion by 2031, up from a previous forecast of £33 billion. In 2023, the British drug manufacturer raked in £30.3 billion.
GSK now expects sales to grow by more than 7% on a compound annual growth rate basis between 2021 and 2026, with adjusted operating profit rising by more than 11% over that period. In 2021, growth rates of more than 5% for turnover and more than 10% for profit were assumed.
The company's RSV score partially drove the higher forecast. The vaccine has been approved for use in adults aged 60 and over, but could eventually be greenlit for the 50 to 59 age group, CEO Emma Walmsley said on a media call.
Expanded approval of the vaccine could reach an additional 15 million vulnerable patients, she noted.
“We are very excited about the prospects of this vaccine as part of our high-quality adult vaccination portfolio, which will continue to support this improved outlook over the longer term,” Walmsley said.
She added that GSK is planning at least 12 major product launches, most of which will take place over the next four years.
Arexvy became the world's first RSV vaccine to receive regulatory approval in May, following a green light from the U.S. Food and Drug Administration. The shot later received approval in the UK, Canada, Japan and several other countries.
With sales of $1.5 billion last year, Arexvy is now a “blockbuster” vaccine, with a product achieving annual sales of at least $1 billion.
The vaccine has about a 70% market share for RSV, Walmsley added on Wednesday. That's a huge lead over GSK's main market rival, Pfizer, which has approved an RSV vaccine for adults aged 60 and over and for expectant mothers who can pass the protection on to their children.
Pfizer's shot, known as Abrysvo, generated about $890 million in sales last year after its launch, the company announced Tuesday.
Pfizer wants to grow its RSV market share by treating vaccination as a “year-round discussion” and expanding the company's retail contracts and offerings, CEO Albert Bourla said during an earnings call on Tuesday. The company is also investigating the shot in people aged 18 to 59.
Bourla said at a conference earlier this month that the shot had a “poor launch.”
Meanwhile, biotech company Modern hopes to launch its own RSV vaccine this year.
RSV usually causes mild, cold-like symptoms. But each year in the U.S., the virus kills 6,000 to 10,000 seniors and a few hundred children under age 5, according to the Centers for Disease Control and Prevention.
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