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How GlaxoSmithKline’s Pharmaceutical Business Performed

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Pharmaceutical business

GlaxoSmithKline’s (GSK) Pharmaceutical segment includes various products from different therapeutic areas including respiratory products, HIV products, immuno-inflammation products, and established products. During the second quarter of 2018, the Pharmaceutical segment reported a 1% increase in operating revenues to ~4.23 billion pounds.

The above chart shows the quarterly revenue trend for the Pharmaceutical segment since the first quarter of 2017.

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Growth drivers

The operating growth for the pharmaceutical segment was driven by strong sales of the following:

  • immuno-inflammation product Benlysta
  • HIV products including Tivicay, Triumeq, and Juluca
  • Respiratory products including Nucala, Flixotide/Flovent, Avamys/Veramyst, and the Ellipta portfolio

The operating growth was offset by lower sales of drugs including Seretide/Advair, Epzicom/Kivexa, Ventolin, and established products during the quarter.

Performance in US markets

The revenues from the US markets decreased by ~5% to ~1.9 billion pounds during the second quarter of 2018, driven by the 5% negative impact of foreign exchange, and flat operating revenues.

The increased sales of HIV products including Juluca, Tivicay, and Triumeq; respiratory products including Ellipta, Flixovent/Flovent, and Nucala; and the immuno-inflammation drug Benlysta, were offset by lower sales of other HIV products, respiratory products, and established products during the quarter.

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Performance in European Markets

The revenues from the European markets decreased by ~1% to ~984 million pounds during the second quarter of 2018, driven by a 1% decline in operating revenues, and the marginal impact of foreign exchange.

The lower sales of Epzikom/Kivexa, Seretide/Advair, Selzentry, and established products contributed towards the decline in operating revenues during the quarter.

Performance in international markets

The international markets reported revenues of ~1.4 billion pounds during the second quarter of 2018, a 1% decline in YoY revenues, driven by a 5% negative impact of foreign exchange, partially offset by a 4% increase in operating revenues.

The increased sales of HIV products including Triumeq and Tivicay; respiratory products including Ellipta products Nucala and Avamys/Veramyst; and established pharmaceutical products including Lamictal and Avodart were offset by lower sales of other products during the quarter.

The First Trust Value Line Dividend ETF (FVD) holds 0.5% in GlaxoSmithKline (GSK), 0.5% in Novartis (NVS), 0.5% in Eli Lilly (LLY), and 0.5% in Medtronic (MDT).

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