GSK Reports Mixed Results as US Vaccine Demand Slumps

GSK, one of the world's leading pharmaceutical companies, has reported a mixed bag of results for the third quarter of 2025, with overall growth overshadowed by a significant decline in US vaccine sales. The company's financial performance highlights the challenges facing the vaccine market in the United States, a trend that appears to be affecting other major players in the industry as well.

Shingrix Sales Plummet in US Market

GSK's shingles vaccine, Shingrix, experienced a sharp 15% year-on-year decline in US sales during the third quarter, bringing in just £256 million ($338 million). This stark contrast to the vaccine's performance in Europe, where sales grew by 48% to £297 million ($392 million), underscores the growing divide between US and international markets for immunization products.

Luke Miels, GSK's Chief Commercial Officer and incoming CEO, attributed the US decline to "macro factors around vaccines" during an investor call. While specific factors were not detailed, the company's press release cited "harder-to-activate unvaccinated consumers" as a key challenge. The shifting landscape of vaccine perception in the US, influenced by recent policy changes and public health debates, may be contributing to this trend.

Overall Financial Growth Despite Vaccine Challenges

Despite the setback in US vaccine sales, GSK reported strong overall financial results for the quarter. The company's total sales reached £8.547 billion ($11.3 billion), representing an 8% year-on-year growth at constant exchange rates. Notably, total operating profit more than doubled compared to the same period last year, hitting £2.593 billion ($3.43 billion).

The robust performance was largely driven by GSK's Specialty Medicines division, particularly its HIV franchise, which saw a 12% increase in sales to £1.944 billion ($2.57 billion). Other standout products included the respiratory drug Nucala, with 14% growth, and the cancer immunotherapy Jemperli, which surged 79% compared to the previous year.

Industry-Wide Vaccine Sales Decline

GSK's vaccine sales challenges appear to be part of a broader industry trend. Sanofi, another major pharmaceutical company, recently reported a 17% decline in its COVID-19 and flu vaccine sales for the same quarter. This pattern suggests that vaccine manufacturers may need to reassess their strategies in the US market, where public sentiment and policy decisions are creating a more challenging environment for immunization products.

As the pharmaceutical industry continues to navigate these complex market dynamics, companies like GSK will need to adapt their approaches to maintain growth and address the evolving needs of consumers and healthcare systems worldwide.