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GlaxoSmithKline’s 1Q17 Estimates: Consumer Healthcare

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Consumer Healthcare segment

GlaxoSmithKline (GSK) has improved its supply chain for its Consumer Healthcare products. The company has also launched few new products and is positive for the growth in the consumer healthcare products in coming quarters.

The above chart shows revenues for the Consumer Healthcare segment over the last few quarters. For 1Q17, the segment is expected to report growth in revenues, which should be driven by the increased sales of Oral Care Products and Wellness Products. Other products with strong performance profiles include Otrivin, Sensodyne, Theraflu, and Voltaren.

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Performance expectations

For the US markets, the Consumer Healthcare segment revenues are expected to grow during 1Q17, mainly due to increased sales of the Sensodyne products portfolio and Flonase, a nasal spray for allergies.

For the European markets, GSK’s revenues are expected to grow in 1Q17, mainly due to increase in sales of wellness products like Voltaren and the Sensodyne products portfolio.

For the International markets, revenues are expected to grow in 1Q17, due to increased sales of Sensodyne brand’s Oral Health Products, and Wellness Products such as Voltaren.

To divest any company-specific risks, investors can consider ETFs like the iShares S&P Global Healthcare ETF (IXJ), which holds 2.4% of its total assets in GlaxoSmithKline. IXJ also holds 7.7% of its total assets in Johnson & Johnson (JNJ), 4.4% of its total assets in Merck & Co. (MRK), 2.5% of its total assets in Sanofi (SNY), and 2.1% of its total assets in Bristol-Myers Squibb (BMY).

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