GSK 2018 results have been announced. They show that the company is making progress in rebuilding its pharmaceutical pipeline despite continued competition from generic products.
Highlight figures include:
- Group sales of £30.8 billion
- Pharmaceuticals sales £17.3 billion
- Vaccines sales £5.9 billion
- Consumer healthcare sales £7.7 billion
- Total new respiratory product sales £2.6 billion
- Total HIV sales £4.7 billion.
The rebuild of its pharmaceuticals pipeline continues with 33 of the 46 new medicines now in development targeting modulation of the immune system.
Pharmaceuticals turnover in the year was £17,269 million, flat at AER, but up 2% CER, driven primarily by the growth in HIV sales, which were up 9% AER, 11% CER, to £4,722 million, reflecting share growth over the year in the dolutegravir portfolio; Triumeq, Tivicay and Juluca.
Respiratory sales declined 1% AER, but grew 1% CER, to £6,928 million, with growth from the Ellipta portfolio and Nucala partly offset by lower sales of Seretide/Advair.
Seretide/Advair sales declined 23% AER, 21% CER to £2,422 million. Sales of Advair in the US declined 32% AER, 30% CER (9% volume decline and 21% negative impact of price) primarily reflecting increased competitive pricing pressures. In Europe, Seretide sales were down 19% AER, 20% CER to £599 million (13% volume decline and a 7% price decline).
This reflected continued competition from generic products and the transition of the Respiratory portfolio to newer products. In International, sales of Seretide were down 7% AER, 4% CER, to £726 million (5% volume decline and 1% positive impact of price), with declines in markets with generic competition partly offset by growth from other developing markets. Sales of established pharmaceuticals were down 7% AER, 4% CER.
In the US, sales declined 2% AER but grew 1% at CER, with growth in the HIV portfolio and Benlysta offsetting declines in established pharmaceuticals and respiratory. In Europe, sales grew 2% AER, 1% CER, with growth in the respiratory portfolio offsetting the continued impact of generic competition to Epzicom and Avodart. International was flat at AER but grew 5% CER, with growth driven by HIV and the new respiratory portfolio.
For the Group specifically, over the period to 2020, GSK expects further declines in sales of Seretide/Advair. The introduction of a generic alternative to Advair in the US has been factored into the Group’s assessment of its future performance. The Group assumes no premature loss of exclusivity for other key products over the period.
GSK also reports major progress in immuno-oncology pipeline with 16 assets now in clinical development, reflecting organic progression, the Tesaro acquisition and the alliance with Merck KGaA, Darmstadt, Germany. In 2019, major data readouts and other significant newsflow are expected on multiple new medicines in HIV, Oncology, Immuno-inflammation and Respiratory.
Emma Walmsley, Chief Executive Officer, GSK said: “GSK delivered improved operating performance in 2018 with Group sales growth, strong commercial execution of new product launches, especially Shingrix, continued cost discipline and better cash generation.
“It was also a significant year for the Group strategically, with the launch of a new R&D strategy focused on immunology, genetics and new technologies, together with a series of transactions that support our strategy and reshape of the Group’s portfolio.
“We are making good progress against our priority to rebuild our pharmaceuticals pipeline, particularly in oncology. Since July, we have doubled the number of oncology assets in clinical development to 16 through the advancement of our internal programmes and with targeted business development including the recently completed acquisition of Tesaro and our new alliance with Merck KGaA that is expected to close in Q1 2019. During 2019, we expect to receive pivotal data on three new cancer medicines, all of which have the potential to be launched in the next two years.
“We are also focused on completing the transactions to divest our consumer healthcare nutrition business to Unilever; and the formation of our new joint venture with Pfizer that will create a new, world leading consumer healthcare company and which provides a unique opportunity to deliver substantial value for shareholders.
“Finally, I would like to thank all our customers, suppliers and employees for their support and hard work in 2018 and look forward to working with them in 2019, which will be an important year of execution for GSK.”