(Reuters) – GlaxoSmithKline shares fell more than 6% on Thursday, a day after the U.S. public health agency narrowed its recommendation for the use of all respiratory syncytial virus (RSV) vaccines and suspended recommending their use in people under 60.
The US Centers for Disease Control and Prevention (CDC) said late Wednesday that it now recommends the shots for people ages 60 to 74 who have an increased risk of severe respiratory syncytial disease due to medical conditions.
The decision is negative for GlaxoSmithKline, which makes the Arixvi RSV vaccine, analysts at JPMorgan said in a note.
GlaxoSmithKline has been betting on Arexvy to be its next blockbuster drug, as it grapples with a combination of patent expirations and declining revenues from its current best-selling products by the end of the decade.
Earlier this month, the US Food and Drug Administration approved expanded use of GSK’s RSV vaccine in adults ages 50 to 59, the first dose approved for this age group.
“We believe Arexvy’s consensus forecast may now be lowered to reflect a lower number of eligible patients in the US accident (NASDAQ:) competition, more risks around GSK’s two-year revaccination period,” JPMorgan analysts said.
Respiratory syncytial virus (RSV), which typically causes cold-like symptoms, is a major cause of pneumonia in young children and older adults.
GlaxoSmithKline had expected Arexvi to generate annual sales of more than £3 billion ($3.79 billion) over time. Arixvi achieved sales of £1.2 billion last year when it was launched.
($1 = 0.7914 pounds)
