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GlaxoSmithKline’s Vaccines Business in 3Q17

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Vaccines business

GlaxoSmithKline’s (GSK) Vaccines business includes meningitis vaccines, influenza vaccines, and other established vaccines. Several of these vaccines, including its meningitis vaccines, were acquired from Novartis (NVS) in 2016. The chart below compares revenues for the Vaccines business since 4Q15.

3Q17 performance

GlaxoSmithKline’s (GSK) Vaccines business reported revenues of ~1.7 billion pounds during 3Q17, reflecting 5.0% growth in revenues compared to 3Q16. The growth includes flat operating revenues and a 5% positive impact of foreign exchange during 3Q17.

Meningitis vaccines reported revenues of 298.0 million pounds during 3Q17, representing 31.0% growth in revenues compared to 3Q16. The growth includes a 25.0% increase in operating revenues and 6.0% growth in revenues compared to 3Q16.

Sales of Bexsero rose 32.0% to 176.0 million pounds. Menveo sales rose 56.0% to 98.0 million pounds during 3Q17, driven by strong growth across all markets.

Influenza vaccine Fluarix/FluLaval reported revenues of 343.0 million pounds during 3Q17, a 6.0% growth in revenues compared to 3Q16. This growth includes an 8.0% positive impact of foreign exchange, offset by a 2.0% decline in revenues at constant exchange rates.

The operational decline was due to lower sales in the US and in international markets, partially offset by sales growth in the European markets.

Geographical performance

The US markets reported revenues of 816.0 million pounds during 3Q17, reflecting 13.0% growth in revenues compared to 3Q16. This increase includes 6.0% growth in revenues at constant exchange rates and a 7.0% positive impact from foreign exchange during 3Q17. This growth was driven by strong sales of Bexsero, Menveo, Boostrix, hepatitis vaccines, and influenza vaccines.

The European markets reported revenues of 431.0 million pounds during 3Q17, reflecting 11.0% growth in revenues compared to 3Q16. This increase includes 6.0% growth in revenues at constant exchange rates and a 5.0% positive impact from foreign exchange during 3Q17. This growth was driven by strong sales of Bexsero, Menveo, Boostrix, Rotarix, Synflorix, Priorix/Varilrix, Cervarix, hepatitis vaccines, and influenza vaccines during 3Q17.

The international markets, excluding the US and Europe, reported revenues of 442.0 million pounds during 3Q17, reflecting an 11.0% decline in revenues compared to 3Q16. This trend includes a 14.0% decline in revenues at constant exchange rates, offset by a 3.0% positive impact of foreign exchange during 3Q17. The decline was driven by lower sales of Infanrix, Pediarix, Boostrix, hepatitis vaccines, meningitis vaccines, and influenza vaccines during 3Q17.

The VanEck Vectors Pharmaceutical ETF (PPH) holds 4.4% of its total investments in GlaxoSmithKline (GSK), 4.5% in Sanofi ADR (SNY), 4.7% in Eli Lilly & Co. (LLY), and 4.2% in Teva Pharmaceuticals (TEVA).

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