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GlaxoSmithKline’s Pharmaceuticals Segment in Q2 2018

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Pharmaceuticals segment

GlaxoSmithKline’s (GSK) Pharmaceuticals segment includes its HIV, respiratory, immuno-inflammation, and established products. In the second quarter, Pharmaceuticals revenue grew 1% YoY (year-over-year) to ~4.23 billion British pounds at constant exchange rates.

The above chart shows GSK’s Pharmaceuticals revenue since the first quarter of 2017. In the second quarter, the segment’s revenue growth was driven by sales of HIV products Tivicay, Triumeq, and Juluca, immuno-inflammation product Benlysta, and respiratory products Nucala, Flixotide/Flovent, Avamys/Veramyst, and Ellipta. The growth was offset by lower sales of Epzicom/Kivexa, Seretide/Advair, Ventolin, and established products.

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Geographical performance

In Q2 2018, US revenue fell 5% YoY to ~1.9 billion pounds as a result of a 5% impact by foreign exchange and flat operating revenue. Operating revenue growth was driven by sales of Tivicay, Triumeq, Juluca, Ellipta, Flixovent/Flovent, Nucala, and Benlysta. European revenue fell 1% YoY to ~984 million pounds as a result of a 1% decline in operating revenue and a marginal impact by foreign exchange. The operating revenue decline was driven by lower Epzikom/Kivexa, Seretide/Advair, Selzentry, and established product sales.

International revenue fell 1% YoY to ~1.4 billion pounds as a result of a 5% impact by foreign exchange offset by 4% operating revenue growth driven by Ellipta, Nucala, Avamys/Veramyst, Triumeq, and Tivicay, and established pharmaceutical products Lamictal and Avodart. The First Trust Value Line Dividend ETF (FVD) invests 0.5% of its holdings in GlaxoSmithKline, 0.5% in Novartis (NVS), 0.5% in Amgen (AMGN), and 0.5% in Medtronic (MDT).

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