GSK overcomes vaccine sales dip with gains in cancer and HIV drugs

U.K. – GSK has faced challenges in its RSV vaccine business after the US narrowed its recommendations, but overall, the company still saw strong sales growth.

Thanks to higher demand for its HIV and cancer drugs, GSK exceeded expectations in the fourth quarter. As a result, the FTSE 100 company has raised its long-term revenue target to over £40 billion (US $49.7 billion) by 2031, up from the previous £38 billion (US $47.2 billion) forecast.

This growth is part of its strategy to invest in specialty medicines to compensate for vaccine weaknesses. Additionally, GSK saw a boost in sales from meningitis vaccines like Bexsero, which surpassed £1 billion (US $1.2 billion) in annual revenue for the first time, helped by purchases from the US Centers for Disease Control and Prevention.

The US now only recommends RSV vaccines for people aged 75 and older, with those aged 60 to 74 eligible only if they are at higher risk of severe disease.

This change led to a significant drop in sales for GSK’s Arexvy vaccine, which saw a 51% decline from £1.2 billion (US $1.5 billion) in 2023 to £590 million (US $732.8 million) in 2024. Previously, the vaccine was recommended for all adults aged 60 and over.

However, GSK managed to offset this decline by posting better-than-expected results in its cancer and HIV therapeutics.

The company’s majority-owned joint venture, ViiV Healthcare, saw strong performance, helping group sales rise by 4% at constant exchange rates to £8.1 billion (US $10.1 billion) in the fourth quarter and by 7% to £31.4 billion (US $39 billion) for the full year.

Other companies in the RSV vaccine market also struggled with the narrower recommendations. Pfizer, GSK’s main competitor, reported a 15% drop in sales of its Abrysvo vaccine to US $755 million for 2024.

In the fourth quarter, sales fell by a dramatic 62%, reaching just US $198 million. Moderna, the only other player in the RSV vaccine market, is set to report its annual results in mid-February, but its mResvia vaccine has seen slow uptake so far.

Despite the setbacks in RSV vaccine sales, GSK had bright spots in other areas. Cancer sales increased by 72%, reaching £408 million (US $506.7 million), driven by the success of immunotherapy Jemperli (dostarlimab) for endometrial cancer and the drug Ojjaara/Omjjaara (momelotinib) for anaemia in myelofibrosis patients.

HIV sales also saw growth, with strong demand for long-acting injectable treatments like Cabenuva (cabotegravir/rilpivirine) and Apretude (cabotegravir), as well as the once-daily pill Dovato (dolutegravir/lamivudine).

CEO Emma Walmsley noted that the company is focusing more on research and development, particularly for long-acting and specialty medicines in areas like respiratory, immunology, inflammation, oncology, and HIV.

In 2025, GSK is targeting five major product launches, including treatments for severe asthma, chronic obstructive pulmonary disorder (COPD), a novel antibiotic, a new meningitis vaccine, and a relaunch of the multiple myeloma drug Blenrep (belantamab mafodotin).

Investors reacted positively to the updated forecast, and GSK’s shares surged almost 6% following the announcement.