Pfizer, GlaxoSmithKline and Sanofi all reported at least decent growth in their vaccines businesses for Q1 2016. Merck & Co., not so much. In fact, the global vaccine player reported sales that were essentially flat as the Kenilworth, NJ-based company struggled overall in Q1.
Merck ($MRK), known as MSD outside of the U.S., reported last week that revenues from its vax unit hit $1.3 billion, up 1% from the same quarter a year ago. Sales of its HPV vaccines, Gardasil and Gardasil 9, were up 5% to $378 million. However, sales of RotaTeq, Pneumovax 23 and Zostavax were all down, 2%, 3% and 28%, respectively.
“We are actively working with customers to help them navigate the reimbursement for Zostavax, and expect this to be less of a hurdle over time,” Schechter said.
But a further shakeup for Zostavax may be in the cards, as GSK's vaccine head, Moncef Slaoui, predicted this January that his company's shingles candidate could bring about a "major" market disruption. The British pharma's candidate has posted a 97.2% efficacy compared with placebo in a Phase III trial.
Merck’s competitors in the vaccine world had better news this quarter. GlaxoSmithKline ($GSK) reported vaccines sales up 23% to £882 million ($1.28 billion). Pfizer ($PFE) reported global vaccine sales that rose 18% to $1.51 billion, driven by the Prevnar family of pneumococcal disease vaccines. Even Sanofi ($SNY) reported that its vaccine sales were up 8.2% to €625 million ($719 million). That came despite supply problems for its Pentacel combo vaccine in the U.S., where overall vaccine sales were down 17.3%.
Merck’s weak vaccine sales were a mirror to its quarter overall, in which it reported a 1% decline in revenue to $9.3 billion.
- here’s the earnings release
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