Pharmaceuticals and Vaccines segment
GlaxoSmithKline (GSK) is one of the largest providers of vaccines across the globe. Over 80% of the company’s total revenues for 2014 were contributed by the Pharmaceuticals and Vaccines segment.
Performance for 2014
The revenues for the Pharmaceuticals segment declined by over 11% to 15.5 billion pounds (or $25.6 billion) in 2014 from 17.4 billion pounds (or $27.1 billion) in 2013. Revenues for the Vaccines segment declined by over 7% to 3.2 billion pounds (or $5.3 billion) in 2014 from 3.4 billion pounds (or $5.3 billion) in 2013, including the impact of changes in foreign exchange rates. The performance of each franchise is shown in the chart above.
The Respiratory franchise reported a 15% decline in sales to 6.2 billion pounds (or $10.2 billion) in 2014. For US markets, the sales declined 18% CER (or constant exchange rate), primarily due to continued price and contraction pressures in the market.
The Oncology franchise reported a 24% increase to 1.2 billion pounds (or $2.0 billion) in 2014. For US markets, this segment’s sales grew by 41% CER primarily due to increased sales of products, including Votrient (used to treat renal cell carcinoma or kidney cancer) and Promacta (a man-made protein that increases platelet production).
The Cardiovascular, Metabolic, and Urology franchise reported a 10% decrease to 965 million pounds (or $1.6 billion) in 2014. For US markets, sales declined 16% CER, which was offset by Emerging Markets and Japan.
The Immune-inflammation franchise reported an increase of 33% to 214 million pounds (or $353 million) in 2014, due to increased sales across all regions.
The sales for other therapy areas were down by 10% at 2.4 billion pounds (or $4.0 billion) in 2014, primarily due to generic competition in dermatology products and declining sales.
ViiV Healthcare sales saw an 8% increase to 1.5 billion pounds (or $2.5 billion) in 2014, with an increase of 28% CER in the US markets.
The Established Products franchise reported a 22% decline at 3.0 billion pounds (or $5.0 billion) in 2014, with a decline in sales of about 31% CER in the US markets.
There was a 7% decline in vaccine sales, at 3.2 billion pounds in 2014 (or $5.3 billion), with flat performance from the US markets.
Major competitors for the Pharmaceuticals and Vaccines segment include Sanofi (SNY), Merck (MRK), and Pfizer (PFE). Funds like the Health Care Select Sector SPDR ETF (XLV) focus on the pharmaceuticals and healthcare business.