Shares at GSK have fallen in early trading after the British pharmaceutical firm announced that it was dropping its vaccine sales forecast for the current year.

The FT has reported that shares dropped by over 3% earlier today following the announcement.

GSK said that despite "lower than anticipated vaccine demand", it had delivered growth in vaccine sales and core profits in Q3.

However, it has revised its full-year guidance for vaccine sales, stating that it now expects a low-single digit per cent decrease.

This comes as sales of Arexvy and Shingrax dropped by 72% and 7% to £188m and £739m, respectively.

In its Q3 update, GSK said its total turnover increased by 2% in this period to £8bn, which was slightly below expectations, while its core operating profit jumped by 5% year-on-year to £2.8bn.

Chief executive officer at GSK, Emma Walmsley, said: "We have delivered another quarter of sales and core operating profit growth, and further good progress in R&D. Strong growth in specialty medicines helped to offset lower vaccine sales and reflected successful new product launches in oncology and HIV, as well as the resilience we have now built into GSK's portfolio and performance.

"Our pipeline continues to strengthen with 11 positive phase III trials reported so far this year and we are currently planning launches for five major new product approval opportunities next year."

Looking ahead, GSK said it now expects its core operating profit to grow between 122% and 13%, despite a six percentage point impact to operating profit growth following the loss of the majority of Gardasil royalties, effective from the beginning of 2024.

Core earnings per share are also expected to increase by 10% to 12% in the full year, while GSK has declared a dividend of 15 pence per share in Q3, therefore leading to a dividend of 60 pence per share for the full year.

Head of equity research at Hargreaves Lansdown, Derren Nathan, said that the pharmaceutical firm has "delivered a strong beat" on Q3 profits, despite sales dropping.

He concluded: "GSK is showing strength elsewhere in its portfolio with 19% growth in speciality medicines, as the emerging cancer treatment franchise is up over 100% year to date. The higher margins in this division have had a positive impact on the bottom line, and full-year targets remain unchanged.

"New approvals and data in vaccines should see growth return after the current headwinds have been navigated.

"GSK’s valuation isn’t pricing in much upside, but there are plenty of growth levers to pull on. Drug development is a risky business but it’s hard to fault recent progress on the R&D front. What’s more, the resolution of the vast majority of Zantac litigation removes a key uncertainty, a fact that’s yet to be recognised by the market."

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