The Pharmaceuticals segment
At constant exchange rates, the Pharmaceuticals segment reported a 6% rise in its 3Q16 revenue to 4.1 billion British pounds, compared to 3.3 billion pounds in 3Q15. This rise was driven by increased sales of HIV products Triumeq and Tivicay and new pharmaceutical products, and it was partially offset by lower sales of Seretide and Advair.
Overall, the Pharmaceuticals segment’s contribution to GSK’s total revenue fell from 54.5% in 3Q15 to ~53.8% in 3Q16. Let’s now take a look at the subsegments in the Pharmaceuticals segment.
The Pharmaceuticals segment includes the following franchises: HIV products, respiratory products, cardiovascular, metabolic, and urology products, immuno-inflammation products, and established products.
GSK’s HIV products are marketed under ViiV healthcare, a company in which GSK is a major shareholder, and Pfizer (PFE) and Shionogi are other shareholders.
GSK completed its acquisition of Bristol-Myers Squibb’s (BMY) R&D (research and development) HIV assets on February 22, 2016, strengthening its position in the market for HIV treatment products. These products reported a sales rise of 32% at constant exchange rates to 940 million pounds in 3Q16 compared to 3Q15.
The Global Pharmaceuticals business deals with respiratory, cardiovascular, metabolic and urology, immuno-inflammation, and established products. The Global Pharmaceuticals segment reported revenue of 3.1 billion pounds in 3Q16.
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