Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. GlaxoSmithKline plc
  6. News
  7. Summary
    GSK   GB0009252882

GLAXOSMITHKLINE PLC

(GSK)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Clamour for GSK shingles shot points to bigger profits

06/25/2018 | 09:41am EDT
FILE PHOTO: The GSK logo is seen on top of GSK Asia House in Singapore

LONDON (Reuters) - GlaxoSmithKline is facing "unprecedented" demand for its new shingles vaccine Shingrix, suggesting the product could be a bigger money-spinner than the company and analysts initially thought.

In the short term, though, GSK faces a problem. While more than 1.5 million Americans have received Shingrix since the end of last year, others are having to wait, prompting the U.S. Centers for Disease Control and Prevention (CDC) to warn https://www.cdc.gov/vaccines/hcp/clinical-resources/shortages.html#note4 of shortages.

GSK said it had increased deliveries significantly and was vaccinating people against shingles far faster than in the past, when Merck & Co's Zostavax was the only product available. But it acknowledged it was struggling to keep up.

"The arrival of Shingrix has been met with an unprecedented level of demand from patients and healthcare professionals," a spokesman said.

"Healthcare professionals are vaccinating with Shingrix at a rate many times that of prior years, so ordering limits and intermittent shipping delays should be expected for Shingrix during 2018."

The CDC has recommended Shingrix over Merck's older and less effective vaccine in adults 50 years and older, spurring the current strong demand.

Consensus forecasts currently point to peak annual sales for Shingrix of around 1.5 billion pounds ($2 billion), according to Thomson Reuters data, with the U.S. market the main driver. But this number may prove to be too low, according Exane BNP analysts.

The brokerage reckons sales could rise to 3 billion pounds if Shingrix can achieve market penetration rates of around 60 percent - double the level seen with Zostavax but similar to levels achieved by Pfizer's pneumonia vaccine Prevnar.

GSK said in April that Shingrix had got off to a flying start, with sales of 110 million pounds in its first full quarter on the market and 2018 sales expected to top 400 million.

A company spokesman declined to give any update on that forecast ahead of second-quarter results next month.

Shingrix is a key new product for GSK Chief Executive Emma Walmsley as she strives to improve the company's commercial performance.

It is also crucial for showing the profit potential of GSK's large vaccines business, where GSK is looking to expand margins.

GSK has already achieved its mid-term goal of getting vaccine margins to 30 percent and Exane BNP believes it could hit 35 percent by 2020, helped by the roll-out of Shingrix and other premium vaccines like Bexsero and Menveo against meningitis.

Shingrix is given in two doses, separated by two to six months, while Zostavax is a single shot. Ensuring patients adhere to the two-shot regimen will be important in achieving the vaccine's full sales potential.

Shingles is caused by reactivation of the varicella zoster virus that is also responsible for chickenpox. Nearly all adults over 50 have the virus dormant in their nervous system and are at risk of it being reactivated with advancing age.

(Reporting by Ben Hirschler; Editing by Mark Potter)

By Ben Hirschler


ę Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
GLAXOSMITHKLINE PLC -0.18% 1430.8 Delayed Quote.6.83%
MERCK & CO., INC. -1.22% 75.48 Delayed Quote.-7.73%
PFIZER, INC. -1.07% 45.19 Delayed Quote.22.77%
All news about GLAXOSMITHKLINE PLC
08/04NATERA : Tumor DNA Test Deployed in GlaxoSmithKline's Breast Cancer Treatment Tr..
MT
08/04Vertex Names Stuart Arbuckle as Operating Chief
DJ
08/03Sanofi bets on mRNA vaccines beyond COVID in $3.2 billion Translate Bio deal
RE
08/03GLAXOSMITHKLINE : UBS Cuts GlaxoSmithKline PT, Maintains Neutral Rating
MT
08/03Sanofi bets on mRNA vaccines beyond COVID in $3.2 billion Translate Bio deal
RE
08/03GLAXOSMITHKLINE : UBS sticks Neutral
MD
08/03RIGHTS AND ISSUES INVESTMENT TRUST P : Half Year -3-
DJ
08/03Sanofi makes $3.2 bln offer for U.S. mRNA partner Translate Bio
RE
08/02GLAXOSMITHKLINE : Seeks US Approval for Measles, Mumps, Rubella Vaccine
MT
08/02Sanofi offers to buy U.S. biotech, mRNA partner Translate Bio -sources
RE
More news
Financials
Sales 2021 33 248 M 46 184 M 46 184 M
Net income 2021 3 719 M 5 166 M 5 166 M
Net Debt 2021 20 294 M 28 190 M 28 190 M
P/E ratio 2021 19,4x
Yield 2021 5,58%
Capitalization 71 750 M 99 745 M 99 665 M
EV / Sales 2021 2,77x
EV / Sales 2022 2,62x
Nbr of Employees 94 066
Free-Float 92,2%
Chart GLAXOSMITHKLINE PLC
Duration : Period :
GlaxoSmithKline plc Technical Analysis Chart | GSK | GB0009252882 | MarketScreener
Technical analysis trends GLAXOSMITHKLINE PLC
Short TermMid-TermLong Term
TrendsNeutralBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 27
Last Close Price 1 433,60 GBX
Average target price 1 533,92 GBX
Spread / Average Target 7,00%
EPS Revisions
Managers and Directors
Emma N. Walmsley Chief Executive Officer & Executive Director
Iain James Mackay Chief Financial Officer & Executive Director
Jonathan Richard Symonds Non-Executive Chairman
Karenann K. Terrell Chief Digital & Technology Officer
Hal V. Barron Executive Director & Chief Scientific Officer
Sector and Competitors
1st jan.Capi. (M$)
GLAXOSMITHKLINE PLC6.83%99 745
JOHNSON & JOHNSON10.15%459 079
ROCHE HOLDING AG14.16%340 492
PFIZER, INC.22.77%255 703
ELI LILLY AND COMPANY55.45%232 701
NOVARTIS AG-0.20%224 638