Early Wednesday, GlaxoSmithKline earnings and sales came in below analyst expectations, and GSK stock fell.
XSeparately, London-based GlaxoSmithKline (GSK) said it and partner Sanofi (SNY) have reached an agreement with the U.K. government to supply of up to 60 million doses of the coronavirus vaccine that the two pharma companies are developing.
GlaxoSmithKline stock fell 1.7%, to 40.59, on the stock market today. The stock is near a buy point of 43.28 out of a cup-with-handle base.
For the quarter, analysts polled by FactSet called for adjusted profit to fall 36% from the year-earlier quarter, but GSK reported a 38% decline. The drugmaker reported revenue of $9.5 billion, down 2.6% from the year-earlier quarter. Analysts had expected $9.71 billion.
GlaxoSmithKline Stock: 'Risks To Business'
GSK maintained its 2020 guidance for adjusted earnings would fall slightly, but said that outlook has "notable risks to business" due to the Covid-19 pandemic.
Analysts project GlaxoSmithKline earnings of $2.93 per share for the year, down 11%, on $44.4 billion in sales, up 1%.
In April, GSK and Sanofi announced their collaboration to develop vaccines to fight the Covid-19 coronavirus. The companies said they expect to begin tests this year and aim to complete development of a coronavirus vaccine by the second half of 2021. At the time, the deal boosted GlaxoSmithKline stock, which rose 33% from late March to the end of April.
GSK also has several other partnerships to develop coronavirus vaccines. And it has said it plans to manufacture 1 billion doses of its pandemic vaccine adjuvant system in 2021.
But the company said that "overall GSK does not expect to profit from our portfolio of collaborations for Covid-19 vaccines during this pandemic."
Follow Michael Krey on Twitter at @MichaelKrey.
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