GSK and Pfizer face declining demand for RSV vaccines in the US market
From Investing.com: 2024-10-08 20:15:57
U.S. sales of RSV vaccines from GSK and Pfizer are down significantly due to narrowed age group recommendations and one-time shot status, impacting millions who received it last year. Demand has dropped by two-thirds, affecting both companies’ efforts to build new franchises before generic competition hits top-selling drugs in the future. Pfizer faces activist investor pressure and stock price declines.
GSK and Pfizer are experiencing reduced demand for their RSV vaccines, impacting their efforts to build new franchises. Pfizer faces additional challenges with activist investor pressure and declining demand for COVID products. Additionally, GSK is expecting strong growth opportunities globally despite the decrease in U.S. demand for their Arexvy vaccine.
Concerns over falling RSV vaccine demand can be traced back to the government’s decision to narrow the eligible recipient pool, affecting patient vaccination rates and creating lower numbers of patients getting vaccinated. Analysts predict GSK’s Arexvy sales may miss Wall Street expectations in the third quarter, with the traditional RSV season starting in October.
Despite challenges and declining demand, GSK anticipates strong growth opportunities for their Arexvy vaccine, with 9 million Americans vaccinated so far. Pfizer, on the other hand, declined to comment on the situation. GSK expects Arexvy to generate peak year sales of $3.92 billion pounds. Pfizer’s RSV shot, Abrysvo, was launched later in 2023 than anticipated.
RSV vaccine sales have significantly dropped this year, with only an average of 157,000 people getting vaccinated per week this September compared to over 440,000 last year. Volumes at major pharmacies like CVS and Walgreens are declining, with Kohll’s Pharmacy and Condo Pharmacy reporting a 65% and further decrease in bookings, respectively.
The U.S. Centers for Disease Control and Prevention have narrowed the intended age group for RSV shots, impacting those at increased risk of severe illness due to the virus. The U.K. and Canada have started administering the shots to specific age groups, with the CDC classifying them as one-time vaccinations pending further data on re-vaccination benefits.
GSK maintains its lead in the RSV vaccine market, with Pfizer gaining some share in recent weeks. Both companies saw significant sales from their vaccines in 2023, with GSK’s Arexvy contributing 1.2 billion pounds and Pfizer’s Abrysvo reaching $890 million. Despite challenges in demand, Pfizer’s sales are forecasted to increase by nearly 40% this year.
Moderna’s mResvia was approved in May as the third entry in the RSV vaccine market, but it is expected to lag behind GSK and Pfizer due to its late approval. BMO analyst Evan Seigerman highlights the unique nature of RSV vaccines, emphasizing they are one-time shots, not to be expected like flu vaccines.
Read more at Investing.com: Analysis-GSK, Pfizer RSV vaccine sales fall in US as millions fewer people line up By Reuters