As discussed earlier, GlaxoSmithKline’s (GSK) pharmaceuticals segment revenues saw growth of 17% to ~4.2 billion pounds in 1Q17 as compared to 1Q16. This includes an operational growth of 4% and a positive impact from foreign exchange. The growth was driven by increased sales of HIV products Triumeq and Tivicay, and new pharmaceutical products including Relvar, Breo, Ellipta, and Nucala, partially offset by the impact of divestments.
Overall, the pharmaceutical segment’s contribution to total revenues was 56.7% in 1Q17. The pharmaceuticals segment consists of various franchises including HIV products, respiratory products, immuno-inflammation products, and established products.
The company’s HIV products are marketed under ViiV healthcare, a company with GSK as a major shareholder. Pfizer (PFE) and Shionogi are other shareholders. HIV products reported growth of 19% at constant exchange rates to 985 million pounds in 1Q17 as compared to 1Q16. HIV products contribute over 23% of the total pharmaceuticals segment sales.
The global pharmaceuticals business deals with respiratory, immuno-inflammation, and established products. The company’s global pharmaceuticals segment reported revenues of 3.20 billion pounds in 1Q17. This includes a 5% growth in respiratory sales at constant exchange rates to 1.68 billion pounds, a 23% growth in immuno-inflammation sales at constant exchange rates to 92 million pounds, and a 6% decline in established pharmaceuticals sales at constant exchange rates to 1.43 billion pounds during 1Q17.
To divest the risk, investors can consider ETFs like the Vanguard FTSE All-World Ex-US ETF (VEU), which holds 0.6% of its total assets in GlaxoSmithKline. VEU also holds 1.2% of its total assets in Novartis (NVS), 0.6% in Sanofi (SNY), and 0.5% in AstraZeneca (AZN).