How GlaxoSmithKline’s Consumer Healthcare Segment Fared in 1Q17



Consumer healthcare segment

With improvements in the supply chain and the successful launch of new products, GlaxoSmithKline (GSK) is optimistic about its consumer healthcare segment performance in coming years. Apart from the new products, the company has worked on its supply management in order to avoid the issues faced in European markets during 2014.

This segment reported growth of 2% at constant exchange rates to ~2,043 million pounds during 1Q17, following the strong performance of Sensodyne, Voltaren, Otrivin, and Theraflu, as a part of a joint venture with Novartis (NVS).

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Consumer healthcare performance

The segment achieved growth of 5% at constant exchange rates to 527 million pounds in US markets during 1Q17 due to the strong performance of Flonase and new products under the Sensodyne brand.

For the Europe markets, the growth was 1% at constant exchange rates to 605 million pounds during 1Q17, driven by the strong performance of Voltaren and Sensodyne. Voltaren is a nonsteroidal anti-inflammatory drug used in the treatment of pain or inflammation caused by arthritis or spondylitis.

International revenues reported a 2% growth at constant exchange rates to 911 million pounds during 1Q17, driven by growth in oral health products including Sensodyne True White and wellness products including Voltaren.

Flonase is a nasal spray for allergies and competes with Sanofi’s (SNY) Nasacort, while Sensodyne is a leading brand of oral healthcare products by GSK. Voltaren competes with products like Depomed’s (DEPO) Zipsor, Iroko Pharmaceutical’s Zorvolex, and Hospira’s Dyloject.

To divest the risk, investors can consider ETFs like the VanEck Vectors Pharmaceutical ETF (PPH), which holds 5.1% of its total assets in GlaxoSmithKline.


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