Competition and Optimism: GSK's CEO Walmsley Foresees Growth Despite Competition In RSV Vaccine Market

Emma Walmsley, the Chief Executive Officer of GSK plc GSK, expressed confidence in its respiratory syncytial virus (RSV) vaccine, Arexvy, anticipating sales to surpass £1 billion ($1.26 billion) in its debut year. 

This positive outlook follows an impressive start in the U.S. market for Arexvy, initially forecasted to generate sales between £900 million and £1 billion in 2023.

"We're delighted with the start of our RSV vaccine," stated Walmsley during a Reuters Newsmaker interview, highlighting the substantial growth potential for Arexvy, designed to combat RSV, a major cause of pneumonia in toddlers and the elderly.

Approved by the FDA for older adults in May, GSK's Arexvy was launched in the U.S. earlier this year, gaining approval in Europe, Japan, and other regions. The company is banking on Arexvy to become its next blockbuster product amid patent expiries and declining revenue from its current bestsellers in the coming years.

Despite Pfizer Inc's GSK competition, Walmsley emphasized the positive impact of having multiple vaccines in the market, contributing to heightened awareness and creating a broader market.

However, looming costly litigation over the discontinued heartburn drug Zantac remains a concern for GSK's stock performance. Walmsley clarified that these expenses, estimated at $5 billion by analysts, would not alter the company's capital allocation strategy.

Price Action: GSK shares are up 1.03% at $35.86 on the last check Thursday.