GSK Australia Reports 2014 results to ASIC

“GSK significantly transformed its operations in March with our three-part transaction with Novartis, representing a major step forward in our strategy to create a stronger and more balanced set of businesses across Pharmaceuticals, Consumer Healthcare and Vaccines. 

“Innovation remains strong and we continue our commitment to bring all our new medicines and vaccines to Australia. GSK registered nine innovative products last year and we are focusing on ensuring healthcare professionals are aware of these medicines and how they can benefit their patients,” said Geoff McDonald, General Manager Pharmaceuticals Australia. 

In March 2015, GSKA completed its three-part transaction with Novartis. GSK and Novartis created a new, world-leading consumer healthcare business with GSK holding a controlling equity interest of 63.5 per cent. GSK acquired Novartis' global vaccine business, excluding influenza vaccines, and GSK divested its marketed oncology portfolio. 

Also in March, GSK announced that an agreement was reached to sell its Australian-based Opiates business to SunPharma. 

Selling its Opiates business simplifies GSK’s operations in Australia allowing it to focus on delivering its innovative medicine and vaccine portfolio, which will be central to the company’s growth strategy in the future. The transaction with SunPharma is expected to be completed by August 2015. 

For discontinued operations (Opiates and Consumer Healthcare) GSK reported a net loss before tax of $144m. Reported sales revenue for 2014 from these operations was $413m and a reported profit before tax and impairments of $37m. Both the sale of the Consumer Healthcare and Opiates businesses in March 2015 resulted in the recognition of asset impairments. 

The Consumer Healthcare commercial division experienced a decline in sales (down 8 per cent) and the Consumer Healthcare manufacturing division had a growth in sales (up 27 per cent). 

“There was a decline in sales due to the divestment of Lucozade and Ribena to Suntory. However, this was offset with an increase in demand for Panadol. We are now focused on rapidly implementing our integration plans to realise the growth and synergy opportunities we see in our new Consumer Healthcare business,” said Vincent Cotard, General Manager Consumer Healthcare Australia. 

Revenue for the Opiates Division was impacted by demand slow-down for a key product in the USA, its principal market. Despite this, modest revenue growth was achieved overall driven by strong demand in Europe and India. 

Total group manufacturing exports decreased to $437m due to a decrease in demand for Relenza in Japan. Total group investment in Research and Development was $47m. Manufacturing and R&D investment remained reasonably steady as a percentage of overall revenue from previous years.