Will GSK Be Able to Resolve Its Vaccine Challenges Anytime Soon?

GSK plc GSK is one of the key vaccine makers in the world, marketing vaccines to help prevent infectious diseases like Respiratory Syncytial Virus or RSV, meningitis, shingles, hepatitis and many more.

GSK’s Vaccine sales are declining in the United States due to lower sales of its shingles vaccine, Shingrix and RSV vaccine, Arexvy, amid a challenging external environment. U.S. sales of Shingrix are declining due to lower demand resulting from challenges in activating harder-to-reach consumers, which have slowed immunization rates.

Revised recommendations for RSV vaccinations issued in June 2024 by the US Advisory Committee on Immunization Practices (ACIP) are hurting sales of Arexvy in the United States. In June, the ACIP recommended the use of Arexvy for all adults aged 75 and above. However, for adults aged 50-74, the ACIP has recommended the vaccine only for those who are at increased risk of severe RSV disease.

While sales of Arexvy and Shingrix rose in Europe, their sales declined 18% and 56%, respectively, in the United States in the first half of 2025. Total vaccine sales declined 11% at CER in the United States in the first half of 2025. Vaccine sales declined 5% in International Markets (other than Europe).

Though its vaccine sales improved slightly in the second quarter from first-quarter levels due to higher sales in Europe, the challenges in the United States and other international markets are expected to continue through the rest of the year. In 2025, the company expects sales in the Vaccines segment to decrease by a low single-digit percentage to remain broadly stable at CER.

GSK has a decent pipeline of best-in-class vaccines. Penmenvy, GSK’s pentavalent MenABCWY meningococcal vaccine, was approved in the United States this year. Penmenvy has the potential to simplify immunization schedules and provide better protection against the disease. GSK is also developing vaccines for measles, mumps, rubella & varicella (new strain) and mRNA vaccines for seasonal influenza, H5N1 pre-pandemic influenza, a seasonal influenza and COVID-19 combination vaccine in early-to-mid-stage studies. GSK is also evaluating the use of Shingrix beyond shingles, such as in dementia. However, the pipeline will take time to develop and can only contribute to Vaccine sales in the long term.

PFE and MRNA Market RSV Vaccines Too

Other RSV vaccines available in the market are Pfizer’s PFE Abrysvo and Moderna’s MRNA mResvia. RSV vaccines gained traction in 2023 with the initial approvals of Arexvy and Abrysvo — the first FDA-approved RSV vaccines. At the time, the CDC issued blanket approvals for use among individuals aged 60 and older. However, the CDC later narrowed that guidance, which trimmed the target market last year.

All RSV vaccines are approved for all adults aged 60 and above. Additionally, while GSK's RSV vaccine is approved for use in high-risk individuals aged 50-59, PFE’s Abrysvo and Moderna’s mResvia are approved for use in high-risk people aged 18-59. The Pfizer vaccine is also approved for use in infants through maternal immunization.

GSK’s Price Performance, Valuation & Estimate Movement

GSK stock has risen 19.2% year to date against a decrease of 0.1% for the industry.

GSK’s stock is trading at an attractive valuation relative to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 8.68 on a forward 12-month basis, lower than 14.78 for the industry. The stock also trades below its 5-year mean of 10.05.

The Zacks Consensus Estimate for earnings has risen from $4.34 to $4.39 per share for 2025, while that for 2026 has risen from $4.73 to $4.75 per share over the past 30 days.

GSK has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research