GlaxoSmithKline’s 2Q17 Earnings: HIV Business



ViiV Healthcare

ViiV Healthcare is a global specialist company in HIV medicines. GlaxoSmithKline (GSK) is the major shareholder in ViiV Healthcare, while Pfizer (PFE) and Shionogi are among the other shareholders. ViiV Healthcare is completely focused on developing and delivering advanced treatments and care for HIV infections.

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Performance of HIV Products franchise in 2Q17

GSK’s HIV Products franchise reported growth of 29.0% to ~1.1 billion pounds in 2Q17 compared to 2Q16. This growth is driven by the strong performance of the drugs Tivicay and Triumeq, partially offset by declining sales of Epzicom/Kivexa in the European markets. 

Geographically, the sales of the HIV Products franchise in the US markets rose 36.0%. Sales in Europe were nearly flat at constant exchange rates. The franchise’s international markets reported operational growth of 27.0% during 2Q17, mostly driven by the continued uptake of Triumeq and Tivicay.

During 2Q17, Epzicom/Kivexa sales fell 63.0% operationally to 63.0 million pounds. This trend resulted from lower sales due to patent expiry, followed by competition from generic drugs since 3Q16.

Tivicay and Triumeq

Tivicay and Triumeq are the blockbuster drugs from ViiV Healthcare for the treatment of HIV1 infections. Tivicay is approved for use in combination with other antiretroviral drugs. Triumeq is approved for use in combination with three antiviral drugs.

During 2Q17, Tivicay reported 37.0% growth in operating revenues to 340.0 million pounds, driven by growth in the US, Europe, and international markets. Triumeq reported operational growth of 44.0% during its 2Q17 revenue release to 648.0 million pounds. The combined annual revenues for both drugs could reach 4.5 billion pounds by 2020.

Other products

The revenues from other products, including Combivir and Lexiva, fell 25.0% at constant exchange rates to 36.0 million pounds during 2Q17.

Selzentry reported a 13.0% decrease in operating revenues to 29.0 million pounds during 2Q17 compared to 2Q16, following lower sales due to competition from other drugs.

To divest company-specific risks, investors can consider the BLDRS Europe Select ADR ETF (ADRU), which holds 3.0% of its total assets in GlaxoSmithKline. ADRU also holds 6.6% of its total assets in Novartis (NVS), 3.3% in Sanofi (SNY), and 2.3% in Novo Nordisk (NVO).


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