GlaxoSmithKline’s Pharmaceuticals Business in 4Q17


Feb. 20 2018, Updated 1:13 a.m. ET

Pharmaceuticals business

GlaxoSmithKline’s (GSK) Pharmaceuticals business includes respiratory products, immuno-inflammation products, HIV products, and its established products portfolio. The chart below illustrates the revenues for its Pharmaceuticals business since 1Q16.

The Pharmaceuticals segment reported revenues of ~4.5 billion pounds in 4Q17, driven by the increase in sales of its HIV products (Triumeq and Tivicay). It was also driven by growth in the sales of its new respiratory products (Ellipta portfolio and Nucala).

This growth was partially offset by lower sales of Seretide, Advair, Flovent, Ventolin, and established products.

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Geographical distribution: The US

Geographically, the US sales for its Pharmaceutical segment fell ~2.0% to ~2.0 billion pounds in 4Q17. This growth included ~3.0% growth in revenues at constant exchange rates, offset by an ~5.0% decrease due to the negative impact of foreign exchange.

The growth in operating revenues from the US markets was driven by strong sales of new respiratory products, including its Ellipta portfolio and Nucala, as well as strong sales of HIV products.

GSK’s Europe market

GlaxoSmithKline’s (GSK) Europe market reported ~1.0% growth in revenues to ~1.0 billion pounds in 4Q17. This growth includes flat operating revenues and an ~1.0% positive impact of foreign exchange.

These revenues were primarily impacted by the lower sales of Epzicom and Avodart due to generic competition, lower sales of its respiratory products, and the divestiture of the Romanian distribution business in 2016.

GlaxoSmithKline’s international markets reported flat revenues of ~1.5 billion pounds in 4Q17. This includes ~5.0% growth in revenues at constant exchange rates, offset by an ~5.0% decrease in revenues due to the negative impact of foreign exchange.

The growth in international markets was due to HIV products and new respiratory products. The divestiture of its anesthesia and thrombosis portfolios to Aspen Pharmacare in 2017 negatively impacted the growth of its revenues from international markets.

GlaxoSmithKline’s Nucala is a subcutaneous injection for the treatment of severe asthma. Other injections for the treatment of asthma include Teva Pharmaceuticals’ (TEVA) Cinqair, Pfizer’s (PFE) Depo-Medrol, and AstraZeneca’s (AZN) Fasenra.


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