GSK Shares Fall Despite Earnings Beat on Vaccine Sales Weakness
GSK stock dropped sharply after weaker RSV and shingles vaccine sales alarmed investors, overshadowing better-than-expected core earnings.
GSK shares fell sharply Wednesday, making the British drugmaker one of the biggest decliners on the FTSE 100, even as the company posted third-quarter financial results that topped analyst forecasts. Investor anxiety centered on declining sales of its respiratory syncytial virus and shingles vaccines, as well as softer revenue from recently launched medications.
The UK pharmaceutical giant reported a 19% drop in pre-tax profit to £1.9 billion for the July-to-September quarter. The company also recorded £318 million in restructuring charges during the period, with further charges anticipated in coming quarters.
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Despite the headline profit decline, core operating profit and core earnings per share rose 5% and 1% respectively, both coming in ahead of what analysts had projected. The divergence between headline and core figures reflects the restructuring costs weighing on reported earnings.
The sell-off underscores a broader tension in pharmaceutical markets, where investors increasingly scrutinize revenue momentum in specific product lines rather than headline earnings beats alone. For GSK, Britain's second-largest pharma company, the pressure on its vaccine portfolio raises questions about near-term growth drivers even as its underlying operations appear stable.
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