GSK PLC's (LSE:GSK, NYSE:GSK) share price jump on settlement of most of its Zantac litigation claims has reversed recently on concerns about two key products, Arexvy and Shingrix, in the important US market.
Those three elements will dominate next week’s trading update with confirmation that the end of the Zantac issue is in sight one thing investors would like to hear.
Arexvy, for RSV, has recently been approved in Europe but it might be the shingles vaccine Shingrix that is the decider on how well this update is received.
UBS recently highlighted that Shingrix sales in the US are down 27% year-to-date.
“GSK called out an explicit effort this year to try to penetrate more of the 63% of US citizens over the age of 50 who have not taken up a shingles vaccine. This has not been successful.” said analysts.
Additionally, UBS pointed to higher net debt stemming from the £1.8 billion Zantac settlement, which also contributed to a downward revision in its EPS forecasts for the next two years.
Hargreaves Lansdown by contrast notes that GSK has already upgraded guidance twice this year despite the headwinds and if it can do that again it might finally ease some of the lingering doubts that always seem to be circulating the pharma giant.