GSK Shares Slump After CDC Narrows Age Recommendation for RSV Shots
By Helena Smolak
GSK shares plunged after U.S. health officials narrowed their recommendation of respiratory syncytial virus vaccines to a smaller age range and more at-risk patients, which could affect sales of GSK's RSV vaccine, Arexvy.
The U.S. Centers for Disease Control and Prevention's Advisory Committee on Immunization Practices said late Wednesday that it now recommends the shots for individuals ages 60 to 74 with heightened risk of severe RSV due to underlying medical conditions, in addition to all those 75 and older. Previously, it recommended the vaccines for all adults age 60 and over.
Meanwhile, the CDC delayed its decision for the 50-to-59 age group at high risk of severe RSV until additional data become available.
At 1110 GMT, shares traded 5.35% lower at GBP15.14 after falling as much as 7% earlier in the session to the lowest point since January. The stock has gained 4.4% since the year began.
The British pharma giant launched Arexvy in the U.S. last summer. Investors see the shot as a key growth driver for GSK as concerns over the company's productivity in research and development persist.
The Food and Drug Administration approved the vaccine for individuals between 50 and 59 years of age earlier this month, making Arexvy the only RSV vaccine so far to secure FDA approval for that age group. GSK faces competition from Pfizer's RSV vaccine Abrysvo and Moderna's mRESVIA.
ACIP's recommendations will be forwarded to the U.S. Department of Health for review and approval, GSK said.
The ACIP vote may narrow Arevxy use in 2024 and next year, Jefferies analysts said in a note to clients, but they remain confident that use in the U.S. will expand longer-term.
Write to Helena Smolak at helena.smolak@wsj.com
(END) Dow Jones Newswires
June 27, 2024 07:56 ET (11:56 GMT)
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