GlaxoSmithKline has announced its first quarter sales results for 2019, delivering a total of £7.7 billion +6% AER (annual equivalent rate) and overall rising 5%.
Broken down, the sales amounted to £4.2 billion in prescription drug sales, £1.5 billion in vaccines and Consumer Healthcare at £2.0 billion, meaning the results showed revenue growth across all three of GSK’s divisions.
The 5% increase in sales was driven in part by the success of the company’s HIV treatments, including Juluca (dolutegravir and rilpivirine), which generated £70 million during the period.
Similarly, its shingles vaccine, Shingrix (zoster vaccine recombinant, adjuvanted), “delivered another fantastic performance in the quarter,” remarked chief executive Emma Walmsley, with GlaxoSmithKline estimating that sales of the shingles vaccine will be “significantly” more than £1 billion ($1.3 billion) this year.
New respiratory product sales amounted to £631 million ($825 million), up 29% and established pharmaceuticals sales accounted for £2.2 billion ($2.9 billion), down 5%.
“We have made a strong start to 2019” continued Walmsley, “which is an important year of execution for GSK, with growth in sales, operating margins and earnings per share in Q1, in line with our expectations. Strengthening our pipeline remains our number one priority and we reported positive data for several potential new medicines in HIV and Oncology during the quarter.
“I am also pleased to report that integration planning for our new proposed Consumer Healthcare business is going well and, subject to relevant approvals, we continue to expect to complete this transaction in the second half of the year. We look forward to building on the progress made this quarter.”
The company expects adjusted earnings per share to decline by 5% to 9% this year, reflecting the impact of the acquisition of Tesaro for about $5.1 billion in cash, as well as the expected divestiture of its consumer nutrition business and the merger of its consumer healthcare business with Pfizer this year.
