According to Zhisong Finance APP, the stock price of GlaxoSmithKline (GSK.US) has plummeted because US health officials have recommended limiting the use of its RSV vaccine among older people with higher risk, which may reduce the company's market share in its best-selling vaccine. GlaxoSmithKline's stock price once fell 7.2% in London trading, erasing most of its gains this year, and the stock fell 3.57% on Wednesday in US stocks, and as of this writing, it fell 1.03% in pre-market trading.
Previously, GlaxoSmithKline lost to its competitor Pfizer (PFE.US) in the contract to supply millions of doses of vaccines to its own country. The restrictive guidance marks the second blow to GlaxoSmithKline this week.
It is reported that an advisory group of the Centers for Disease Control and Prevention in the United States only advises adult people aged 60 to 74 to get vaccinated when there is a risk of serious illness. Respiratory syncytial virus (RSV) is common and sometimes fatal, especially for infants and elderly populations. For people over the age of 75, the expert group voted in favor of vaccination, which is stronger than the previous recommendations.
The committee previously recommended that all people over 60 should consult with their doctors about whether vaccination would benefit them. GlaxoSmithKline's Arexvy vaccine has been approved for use in high-risk individuals aged 50 to 59 in the United States, but the group postponed its recommendation for this age range.
John Murphy of Bloomberg Intelligence said the purpose of doing so was to 'increase the vaccination rate, but market concerns could have the opposite effect.'
Pfizer and GlaxoSmithKline are in fierce competition over the vaccination rate of RSV. GlaxoSmithKline has successfully occupied a large share of the US market, but Pfizer has defeated the British pharmaceutical company in bidding and will promote the vaccine in medical services in the United Kingdom. Due to the news of the CDC committee meeting that was broadcasted publicly on Wednesday, Pfizer's stock price fell 2%, and the stock fell 2.04% on Wednesday.