27 Apr

GlaxoSmithKline’s Vaccine Business in 1Q18

WRITTEN BY Mike Benson

Vaccine business

GlaxoSmithKline’s (GSK) Vaccine business includes vaccines for meningitis, influenza, and shingles as well as established vaccines. GlaxoSmithKline had acquired meningitis vaccines from Novartis (NVS) in 2016.

GlaxoSmithKline’s Vaccine Business in 1Q18

The above chart compares revenues for the vaccine business since 1Q17.

1Q18 performance

The vaccines business reported revenues of ~1.2 billion pounds in 1Q18, marking 7% growth in revenues from 1Q17. The growth includes 13% growth in operating revenues, offset by a 6% decrease in revenues due to the negative impact of foreign exchange in 1Q18.

Meningitis vaccines reported revenues of 180 million pounds in 1Q18, a 6% decline from 1Q17. The decline includes a 2% decrease in operating revenues and a 4% decrease due to the negative impact of foreign exchange. The decline was due to lower sales of Menveo and other meningitis vaccines, partially offset by strong sales of Bexsero. Bexsero sales increased 10% to ~139 million pounds, driven by strong sales across all markets. Menveo sales fell ~33% to 33 million pounds in 1Q18 due to lower sales from European and international markets.

Shingles vaccines reported revenues of ~110 million pounds in 1Q18, driven by strong growth in the United States and international markets.

Geographical performance

The US markets reported revenues of ~489 million in 1Q18, 35% growth in revenues compared to 1Q17. This growth includes ~50% growth in revenues at constant exchange rates, offset by a ~15% decrease in revenues due to the negative impact of foreign exchange.

European markets reported nearly flat revenues of 389 million pounds in 1Q18, which includes a 3% decline in revenues at constant exchange rates, offset by a 3% growth in revenues due to the positive impact of foreign exchange.

International markets excluding the United States and Europe reported revenues of ~360 million pounds in 1Q18, a 10% decline in revenues from 1Q17. This total includes a 6% decline in revenues at constant exchange rates and a 3% decline in revenues due to the negative impact of foreign exchange in 1Q18.

The BLDRS Developed Markets 100 ADR ETF (ADRD) invests 2.2% of its portfolio in GlaxoSmithKline ADR (GSK), 2.2% in Sanofi ADR (SNY), 2.1% in AstraZeneca ADR (AZN), and 0.4% in Teva Pharmaceutical ADR (TEVA).

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