GSK Australia Reports 2013 results to ASIC

GSK Australia reported to the Australian Securities and Investment Commission (ASIC) for 2013, sales of $1,414m and a total profit before tax of $42m.

Overall Australian group sales decreased compared to last year, however profit before tax increased marginally.

Exports decreased slightly (down 1% to $515m) as did investment in Research and Development (down 5% to $51m) but these both remained reasonably steady as a percentage of overall revenue from previous years.

“Business performance has been solid despite continuing challenges facing the pharmaceutical industry. A decline in sales for the commercial pharmaceutical business has occurred as the full year impact of the divestment of our classic brands to Aspen Global Incorporated (Aspen) in late 2012 was realised,” said Geoff McDonald, General Manager Pharmaceuticals Australia.

Pharmaceutical manufacturing experienced an increase in sales of about 17% as the investments in previous years began to deliver.

“GSK will continue to evolve to meet the challenges of a tough operating environment by looking for efficiencies in our business model and ways of working. Innovation remains strong and we continue to be committed to bringing all our new medicines and vaccines to people in Australia,” Geoff said.

The Consumer Healthcare division experienced a decline in sales in both commercial (down 4%) and manufacturing (down 20%).

“Consumer Healthcare experienced some significant supply challenges in 2013 that impacted sales. However, our major brands are continuing to build a strong leadership position and with our renewed focus on scientific discovery, new product developments are being expedited through the pipeline said Vincent Cotard, General Manager Consumer Healthcare Australia.

The Opiates Division continued to perform strongly, seeing growth year on year for the last three years.

“The demand for medicinal poppies continues to grow globally and the opiates business will continue to look at ways of increasing capacity to supply, such as the possibility of supplementing the current Tasmanian poppy production by growing crops in Victoria,” Steve Morris, General Manager Opiates Division said.

On 22 April 2014, GSK announced a global major 3 part inter-conditional transaction with Novartis AG involving its Consumer Healthcare, Vaccines and Oncology businesses. The transaction is still subject to regulatory approval and the impact on the Australian business is still to be assessed.

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Additional Notes

GlaxoSmithKline - is a global research-based pharmaceutical and healthcare company. Since 1886 we have delivered the highest quality medicines, vaccines and over-the-counter healthcare products to Australians while investing in local research and providing skilled jobs. For further information please visit www.gsk.com.au

GSK has four manufacturing facilities in Australia. Pharmaceutical products are manufactured in Boronia on the outskirts of Melbourne. It is one of GSK’s largest sterile facilities globally, and includes two Relenza lines and innovative blow-fill-seal technology.

The GSK site at Ermington, in north-western Sydney, manufactures consumer products. The remaining facilities in Latrobe, Tasmania and Port Fairy, Victoria, support production of morphine and other opiates for the pain relief market.