GSK Shares Fall Despite Earnings Beat as Vaccine Sales Disappoint
GSK stock dropped sharply after weaker RSV and shingles vaccine sales rattled investors, overshadowing better-than-expected core earnings.
Shares in GSK fell sharply Wednesday, making the British pharmaceutical giant one of the biggest decliners on the FTSE 100, as investors focused on sluggish vaccine demand rather than a headline earnings beat during the third quarter.
The UK drugmaker reported a 19% drop in pre-tax profit to £1.9 billion for the July-to-September period, alongside £318 million in restructuring charges with more expected to follow. Sales of its respiratory syncytial virus and shingles vaccines, as well as recently launched medicines, came in below market expectations, fueling the selloff.
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Despite the profit decline, GSK's underlying performance offered some reassurance. Core operating profit and core earnings per share rose 5% and 1% respectively, both surpassing analyst forecasts — a distinction that failed to calm investor nerves in the near term.
The divergence between reported and core results reflects the ongoing costs of a broad corporate restructuring at the company, Britain's second-largest pharmaceutical firm. Analysts will be watching closely to see whether the vaccine softness represents a temporary demand dip or a more durable headwind for a product lineup GSK has heavily invested in building out.
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