Britain’s GSK expects lower profits this year as it grapples with disruptions related to the Covid-19 crisis and invests in a new drug production line.
The company said that its plans to split into two companies are progressing towards implementation, but it expects its adjusted revenues to decline by 5-9% at a fixed exchange rate, as in the fourth quarter of 2020, sales of GSK, which is the world’s best-selling vaccine manufacturer, decreased by 2% to reach a value of 74.8 billion pounds (equivalent to 9.11 billion dollars), and recorded adjusted earnings of 3.23 pence per share, slightly above average analyst expectations.
Although the coronavirus pandemic has driven increased demand for over-the-counter pain relievers produced by GSK, it has also negatively affected other parts of the company’s business due to the lack of patients’ visits to doctors.
GSK said it will collaborate with German biotechnology company CureVac to develop a coronavirus vaccine that will target the many strains of the virus in a single dose, and instead of developing its own vaccine, GSK is focused on providing the adjuvant and booster vaccine to other pharmaceutical companies, but it has faced two major problems, one of which is the delay in working on its project with Sanofi, and the second is that the Chinese company Clover terminated its deal with GSK last Monday.
At the same time, pharmaceutical companies are using modern technologies that do not require an adjuvant vaccine, as they have already started producing their own vaccines, including the companies Pfizer-BioNTech and Moderna, and GSK company reportedly launched last year a two-year program to separate into two companies, this follows the consolidation of its OTC business into a venture with Pfizer, which has resulted in a market leader in brands such as Sensodyne toothpaste and Panadol pain relievers.