GlaxoSmithKline’s Vaccines Business Reported Growth in 4Q16

GlaxoSmithKline (GSK) is focused on strengthening its Vaccines business. It acquired the meningitis and other vaccines business from Novartis (NVS). Growth of the Vaccines segment is driven by increased sales of Rotarix; Boostrix; Menveo and Bexsero, the newly acquired meningitis vaccines; and key vaccines including Infanrix, Pediarix, and Hepatitis vaccines.

The above chart shows revenues for the Vaccines segment over the last few quarters.

GSK’s Vaccines segment reported a rise of 18.0% to 1.1 billion pounds in 4Q16. The Novartis acquisition has improved the segment’s sales, which weremainly driven by meningitis vaccines Bexsero in Europe and Menveo in the United States and Europe.

US markets reported a 29.0% rise in revenues to 325.0 million pounds in 4Q16. The rise was driven by strong sales of Bexsero in the US markets, partially offset by lower sales of Fluarix.

European markets reported a 27.0% rise to 370.0 million pounds in 4Q16. The rise was driven by Bexsero, Synflorix, Boostrix, and Hepatitis A vaccine sales, partially offset by lower sales of Infanrix/Pediarix due to competition.

International market sales rose 4.0% on a reported basis to 413.0 million pounds. The rise was driven by Bexsero, Boostrix, Cervarix, Infanrix/Pediarix, and Hepatitis vaccines.

Major competitors for GSK’s meningitis products such as Bexsero include Pfizer’s (PFE) Trumenba. Other companies such as Sanofi (SNY) have meningitis vaccines, including Menactra.

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