Respiratory Syncytial Virus Vaccine (GSK)

In a week of back-to-back new deals, GSK is extending its Shingrix agreement in China and adding a collaboration for its RSV vaccine Arexvy. But the changes mean the UK pharma could get millions of dollars less than it was initially due for its shingles product. The tweaks to GSK’s deal with Chongqing Zhifei Biological Products should make it more “sustainable” and help manage recent “challenges in the macro environment,” GSK’s chief commercial officer Luke Miels said in a Thursday release . The revisions come shortly after GSK announced a fresh ADC pact with DualityBio and a new agreement with Rgenta Therapeutics focused on RNA-targeting small molecules. With the China deal update, Zhifei will have exclusive rights to “import, distribute and co-promote” GSK’s shingles vaccine in China through 2034 — eight years longer than the original deal inked last year. The Chinese biotech is also expected to buy up to £2.3 billion ($2.9 billion) worth of Shingrix in the six years through 2029, according to GSK. But this is slightly lower than the £2.5 billion commitment that featured in the 2023 contract. In the third quarter of 2024, Shingrix sales were down 7% from the same time last year to £739 million ($940 million). The latest iteration of the deal also includes an exclusive “potential collaboration” for Zhifei to commercialize GSK’s RSV vaccine Arexvy in China for at least a decade if it’s approved there. Arexvy was the first RSV vaccine to secure approval in the US and benefitted from a strong launch there last year, but has seen a recent slump in sales due in part to changes in ACIP guidelines and the prioritization of Covid shots. In June, the vaccine policy advisory panel declined to recommend vaccination for people aged 50 to 59, a key group for potential growth. Arexvy reached £188 million ($244 million) in Q3 sales, compared with $356 million for Pfizer’s Abrysvo. During GSK’s latest earnings event, Miels reiterated his expectations that Arexvy could achieve more than £3 billion in peak sales, adding that “we want to play the longer-term game.”

Merck's revenue grew by 18% in the third quarter, with projected annual sales of Keytruda exceeding $29 billion, potentially reaching $30 billion. The 15-valent pneumonia vaccine generated $239 million in revenue, a 13% increase. The 21-valent pneumonia vaccine performed well in the market. However, sales of the 9-valent HPV vaccine in China declined by 10%. Sales of the cardiovascular drug Winrevair reached $149 million, with approximately 1,700 new patients in the third quarter. Despite a downward adjustment in annual revenue guidance, the strong performance of Keytruda and investment in R&D provide support for Merck's future growth. Eli Lilly reported $11.44 billion in revenue for the third quarter, a 20% increase, with a net profit of $970 million. Total revenue for the first three quarters reached $31.5 billion, a 27% increase, with net profit at $6.18 billion. Sales of innovative drugs were strong, particularly tirzepatide, which achieved $11 billion in sales during the first three quarters. Eli Lilly's launch of innovative drugs in cardiovascular, immunology, and oncology fields supports its revenue growth. Other multinational pharmaceutical companies, such as Novartis, Sanofi, and AstraZeneca, also achieved double-digit growth due to the release of innovative drugs, market expansion, and cost control. Johnson & Johnson, AbbVie, and BMS experienced slight growth in the third quarter, maintaining their positions in the top ten. GSK dropped out of the top ten due to declining performance. Johnson & Johnson reported $22.5 billion in revenue, a 5.2% increase, with pharmaceutical business growth of 4.9% and medical device business growth of 5.8%. Sales of the BCMA CAR-T therapy in collaboration with Legend Biotech reached $629 million, an increase of 84.3%. Johnson & Johnson faced challenges, with self-immunity business growth slowing to 1% and ustekinumab sales declining by 1.2%. However, the oncology business grew by 17.2%, becoming a new driver of performance. AbbVie reported $41.232 billion in revenue for the first three quarters, an increase of about 3%. The patent cliff effect of Humira caused a 37.2% decline in sales, but strong sales of Skyrizi and Rinvoq supported performance. GSK's revenue for the third quarter was £8.012 billion, a decrease of 1.6%. The vaccine sector performed poorly, with sales of Arexvy and Shingrix declining. Specialty pharmaceuticals grew by 19%, and oncology grew by 94%. GSK plans to increase investment in specialty pharmaceuticals, seeking to revive its vaccine sector and expand its partnership network. The global pharmaceutical industry shows diversified performance, with concerns arising from the underperformance of some companies. Pharmaceutical companies need to strengthen innovation, international cooperation, and marketing to ensure long-term stable development. Pfizer, Johnson & Johnson, and AbbVie performed outstandingly, while companies like GSK provide insights for adjustment and transformation.