- GSK Plc’s GSK top scientist, Tony Wood, who took the helm of R&D last August, says the R&D department is now delivering results.
- Wood said he is de-emphasizing R&D in oncology and that the R&D focus is now firmly on infectious disease and HIV.
- In an interview with Reuters, Wood said that the overhauled R&D department has put GSK in a solid position to meet growth targets.
- It is essential for the European pharma giant as it faces patent expiries and declining revenues for its current bestsellers by the end of this decade.
- These include its flagship Shingrix vaccine and treatments containing the HIV product dolutegravir.
- In 2022, Shingrix generated £2.9 billion in sales, and Dolutegravir products generated £5.2 billion in sales.
- GSK hopes its respiratory syncytial virus (RSV) vaccine could be its next blockbuster, forecasting £3 billion in future peak sales; Credit Suisse analysts forecast £2.5 billion, the report added.
- FDA approval for GSK’s RSV vaccine is expected in May.
- Wood said other potential bestsellers in late-stage development are hepatitis B treatment bepirovirsen and severe asthma treatment depemokimab, which could be significant growth drivers by the decade’s end.
- Also Read: GSK Looking For Under-Appreciated M&A Targets, Not Trying To Be Next Roche Or AstraZeneca.
- The report also cited one investor with investment in AstraZeneca Plc AZN but not in GSK, saying the seemingly less-coherent approach of GSK’s R&D in recent years was a leading reason the market sees AstraZeneca as a more promising bet.
- The investor said he does not see enough GSK drugs, either on the market or in development, with the potential to be “blockbusters.” “Hopefully, they can achieve that through successful investment in the pipeline over time.”
- Price Action: GSK shares closed at $33.72 on Tuesday.
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