The pharmaceutical landscape has been witnessing an intriguing shift as GSK, a prominent contender in the healthcare industry, has emerged as a formidable competitor to Pfizer in the realm of RSV vaccine sales. The tides turned decisively in GSK’s favor with the release of their respiratory syncytial virus (RSV) vaccine this summer, effectively catapulting them ahead of Pfizer in this dynamic market.
An influential factor behind GSK’s rapid ascendancy appears to be their strategic alliance with CVS Health, a retail powerhouse and the largest pharmacy chain in the U.S. Experts and analysts concur that this collaborative partnership has provided GSK with a distinct advantage in the competitive arena.
Another noteworthy aspect that may have bolstered GSK’s fortunes is the pricing structure. Observations made by independent pharmacists indicate that GSK’s vaccine is marginally more cost-effective than Pfizer’s offering, further cementing GSK’s position in the market.
The preference of CVS Health, an expansive pharmacy chain boasting over 9,000 locations across the United States, for GSK’s vaccine over Pfizer’s is a notable development. Although CVS has not publicly disclosed the specific rationale for this exclusivity, they have expressed their intention to make Pfizer’s Abrysvo available as a maternal RSV vaccine in the near future once their internal pharmacy systems and training are updated, a process expected to conclude within the next month.
In contrast, Walgreens, the second-largest pharmacy chain in the U.S., with approximately 8,700 locations, has taken a more inclusive approach by offering both Pfizer’s Abrysvo and GSK’s Arexvy. Walmart and Rite Aid also present customers with a choice between the two vaccines, creating an interesting array of options for vaccine recipients.
The precise distribution of RSV shots between pharmacies and doctor’s offices remains somewhat elusive. However, data from the 2022-23 flu season from government sources indicates that approximately 60% of adult flu shots in the U.S. were administered in pharmacies.
While GSK has chosen not to publicly divulge the specifics of its RSV vaccine contracts, the company places significant emphasis on its long-established and robust customer relationships as a distinct competitive advantage, a trust nurtured over decades.
Pfizer, when questioned about CVS’s preference for GSK’s vaccine, directed inquiries to the pharmacy chain. Nonetheless, they assured that they are actively engaged in securing contracts with all major pharmacy chains and maintaining an ample supply of Abrysvo, with a considerable 3.2 million doses already released.
Price-wise, GSK’s Arexvy is listed at $280 per shot, making it $15 more economical than Pfizer’s Abrysvo. This does not yet factor in potential volume-based discounts for larger pharmacy chains. Independent pharmacists have reported acquiring the GSK vaccine at a reduced cost from wholesalers, typically in batches of 10.
