Why GlaxoSmithKline’s Vaccines Revenue Grew in Q2 2018



Vaccines segment

GlaxoSmithKline’s (GSK) Vaccines segment includes its influenza, meningitis, shingles, and established vaccines. The segment’s revenue grew 13% YoY (year-over-year) to ~1.3 billion British pounds in Q2 2018, as a result of 16% operating revenue growth and a 3% impact by foreign exchange. The chart below shows the segment’s revenue since the first quarter of 2017.

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Product performance in Q2 2018

Influenza vaccine Fluarix/FluLaval saw its revenue fall 19% to ~17 million pounds, while shingles vaccine revenue stood at ~167 million pounds. Meningitis vaccine revenue fell 8% to ~184 million pounds due to lower sales, and established vaccine revenue fell 1% to ~885 million pounds as a result of 1% operating revenue growth offset by 2% due to foreign exchange.

Performance by region in Q2 2018

  • US revenue grew 54% YoY to ~486 million pounds, as a result of ~61% revenue growth at constant exchange rates offset by a ~7% impact due to foreign exchange.
  • European revenue was nearly flat at 393 million pounds due to operating revenue being flat.
  • International revenue fell 7% YoY to ~374 million pounds, as a result of operating revenue falling ~3% and a ~4% impact by foreign exchange.

The VanEck Vectors Pharmaceutical ETF (PPH) invests 4.9% of its holdings in GlaxoSmithKline, 5.2% in Sanofi ADRs[1.American depositary receipts] (SNY), 5.4% in Bristol-Myers Squibb (BMY), and 5.1% in Merck (MRK).


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