How GlaxoSmithKline’s Vaccines Business Performed in 1Q17
GlaxoSmithKline (GSK) is focused on strengthening its vaccines business, so it acquired the meningitis and other vaccines business from Novartis (NVS). The growth of the vaccines segment has been driven by increased sales of Rotarix, Boostrix, the newly acquired meningitis vaccines Menveo and Bexsero, and key vaccines including Infanrix and Pediarix.
The above chart shows revenues for the vaccines segment over the last few quarters.
Performance of vaccines business
The vaccines business reported a growth of 31% to 1.2 billion pounds in 1Q17. This included an operational increase of 16% and the positive impact of foreign exchange. The Novartis acquisition has improved sales for the company’s vaccines business, mainly driven by the sales of meningitis vaccines Bexsero in the US, Europe, and international markets, as well as Menveo in European and international markets.
The US markets reported a 39% growth in revenues to 363 million pounds during 1Q17. This included an operational increase of 21% and the positive impact of foreign exchange. The growth was driven by strong sales of Bexsero and established vaccines like Infanrix, Pediarix, and Boostrix, partially offset by lower sales of influenza vaccines.
The European markets reported 15% growth to 389 million pounds during 1Q17. This included an operational increase of 4% and the positive impact of foreign exchange. The growth was driven by Bexsero, Synflorix, Boostrix, and Hepatitis A vaccine sales, partially offset by lower sales of Infanrix/Pediarix due to competition.
The international market sales rose 42% on a reported basis to 400 million pounds. This included an operational increase of 25% and a positive impact of foreign exchange. The growth was driven by Bexsero, Boostrix, Infanrix/Pediarix, and hepatitis vaccines.
The major competitors for GSK’s meningitis products are Pfizer’s (PFE) Trumenba and Sanofi Pasteur’s (SNY) Menactra.
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