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GlaxoSmithKline’s Business Segments in 4Q17

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GlaxoSmithKline’s businesses

GlaxoSmithKline’s (GSK) product portfolio is classified into three business segments—Pharmaceuticals, Vaccines, and Consumer Healthcare. GlaxoSmithKline reported revenues of ~7.6 billion pounds in 4Q17 for ~1.0% growth compared to 4Q16. This year-over-year growth was driven by growth in revenues across all three segments.

The chart below compares the segment-wise revenues for GlaxoSmithKline since 1Q16.

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Pharmaceuticals segment

GlaxoSmithKline’s (GSK) Pharmaceuticals segment reported revenues of ~4.5 billion pounds in 4Q17, an ~1.0% decrease in revenues compared to 4Q16. This increase includes ~3.0% growth in revenues at constant exchange rates, offset by an ~4.0% decrease in revenues due to the negative impact of foreign exchange.

This revenue growth was driven by increased sales of new Respiratory products and HIV products. This growth was partially offset by lower sales of Seretide/Advair and other older respiratory products, lower sales of immuno-inflammation products, and established pharmaceuticals products in 4Q17.

Vaccines segment

GSK’s Vaccines segment reported revenues of ~1.2 billion pounds in 4Q17, for ~6.0% growth in revenues compared to 4Q16. This includes ~9.0% growth in operating revenues, offset by an ~3.0% decrease in revenues due to the negative impact of foreign exchange.

This segment’s revenue growth was also driven by strong sales of meningitis vaccines and influenza vaccines, as well as revenues from vaccines for shingles. Its revenue growth was partially offset by lower sales of established vaccines in 4Q17.

GlaxoSmithKline acquired meningitis vaccines from Novartis (NVS) in 2016. Other meningitis vaccines on the market include Pfizer’s (PFE) Trumenba and Sanofi’s (SNY) Menactra and Menomune.

Consumer Healthcare segment

GlaxoSmithKline’s (GSK) Consumer Healthcare segment reported revenues of ~1.9 billion pounds in 4Q17, for ~1.0% growth in revenues compared to 4Q16. This includes ~4.0% growth in revenues at constant exchange rates.

This growth was substantially offset by ~3.0% growth in revenues due to the positive impact of foreign exchange. This revenue growth was driven by strong sales of nutrition products, wellness products, and oral health products, and it was partially offset by lower sales of skin health products in 4Q17.

In the next several articles, we’ll look at the 4Q17 performance of each segment in greater detail.

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