GlaxoSmithKline has reported a sales hike of 3 percent at constant exchange rates (CER*) for 2017, after growth was recorded across all of its three global businesses.
Revenues for the full year hit £30.2 billion, driven by a 3 percent increase in turnover from Pharmaceuticals to £17.3 billion, a 6 percent rise in Vaccines sales to £5.2 billion, and a 2 percent increase in revenues from the Consumer Healthcare segment to £7.8 billion.
Taking a closer look at the Pharmaceuticals division, respiratory sales grew 3 percent to £7 billion, driven by the Ellipta portfolio and Nucala (mepolizumab), while HIV sales were up 16 percent at £4.4 billion, driven by increases in market share for Triumeq (dolutegravir) and Tivicay (dolutegravir).
Underlying operating profit for the year was up 5 percent at £8.6 billion, while total operating profit leapt 39 percent to £4.1 billion, with the increase primarily reflecting a reduced impact from accounting charges related to the re-measurement of the liabilities for contingent consideration, put options and preferential dividends, the firm noted.
For the quarter, the drugs giant booked a sales rise of 1 percent to £7.6 billion, underlying operating profit of $2 billion, up 5 percent year-on-year, and total operating profit of $512 million, down 4 percent from the year ago period.
“In 2017 GSK delivered encouraging results from across the company with sales growth in each of our three global businesses, an improved Group operating margin, Adjusted EPS growth of 4 percent (CER) and stronger free cash flow,” said chief executive Emma Walmsley.
“In 2018 we could see a potential generic version of Advair in the US and our 2018 guidance reflects this. With the sales momentum we anticipate from new and recent launches and focused improvements in operating performance we are increasingly confident in our ability to deliver mid to high single digit growth in Adjusted EPS CAGR (2016-2020 at 2015 CER).”
If no substitutable generic competitor to Advair is introduced to the US market in 2018, then the company says it expects 2018 Adjusted EPS growth of 4 to 7 percent at CER, based on an expected decline this year in sales of Advair sales of 20-25 percent.
In the event of a mid-year introduction of a substitutable generic competitor to Advair in the US, 2018 US Advair sales of around £750 million are forecast, with Adjusted EPS flat to down 3 percent at CER.
Meanwhile, the group also announced that meningitis B vaccine Bexsero has receives Breakthrough Therapy Designation in the US for prevention of invasive meningococcal disease in children two-10 years of age.
In 2014, Bexsero also received breakthrough status for development in the prevention of invasive meningococcal disease in individuals 10-25 years of age and was subsequently granted accelerated approval in January 2015.
*All figures at CER