Shares of GSK plc are under scrutiny in London trading following a key regulatory step for its respiratory syncytial virus (RSV) vaccine in China. The pharmaceutical giant confirmed that China's Center for Drug Evaluation has formally accepted its application for Arexvy and initiated the review process.
Major Market Opportunity
The review targets the vaccine's use for preventing lower respiratory tract disease caused by RSV in adults aged 60 and above. GSK estimates this virus affects over six million older adults in China annually, leading to more than 350,000 hospitalizations. A successful launch would open a significant new market, as Arexvy is already approved for older adults in more than 65 other countries.
This development comes as GSK's new CEO, Luke Miels, emphasizes accelerating the existing portfolio and pursuing strategic business development. The company is navigating a transition aimed at offsetting future patent expirations with new treatments.
Analyst Action and Insider Transaction
In a recent move, JPMorgan increased its price target for GSK to £22.50, maintaining a neutral rating. The adjustment reflects improved investor sentiment and research and development momentum observed following the company's latest financial results.
Separately, a regulatory filing showed that non-executive director Hal Barron sold 67,602 American Depositary Shares on February 5 at a price of $59.17 each. The transaction was related to a reallocation within a company savings plan.
Dividend and Competitive Landscape
Investors are also noting an upcoming dividend event. GSK's ordinary shares will trade ex-dividend on February 19, with the ADSs following on February 20. The dividend payment is scheduled for April 9.
In the competitive RSV vaccine space, Arexvy faces rivalry from Pfizer's Abrysvo in major Western markets. Approval in China could intensify pricing pressures among vaccine manufacturers. The regulatory review is an initial step and does not guarantee approval; potential delays or faster competitor progress could impact the commercial outlook.
Market participants will next focus on GSK's first-quarter earnings, scheduled for release on April 29, for updates on vaccine demand and new product rollouts.
