GSK Australia Reports 2015 results to ASIC

GlaxoSmithKline (GSK) Australia has reported its 2015 results to the Australian Securities and Investment Commission (ASIC) for its pharmaceuticals and vaccines business, as well as GSK Consumer Healthcare (a joint venture with Novartis) and ViiV (a joint venture with Pfizer and Shionogi focused on HIV).

Last year involved marked change for GSK Australia.  In March, GSK and Novartis created a new, world-leading consumer healthcare business with GSK holding a controlling equity interest globally of 63.5 per cent.  GSK acquired Novartis' global vaccine business, excluding influenza vaccines, and GSK divested its marketed oncology portfolio. 

Also in 2015, GSK completed the sale of its Australian-based Opiates business to Sun Pharmaceuticals.

Pharmaceuticals and vaccines

Operating under GlaxoSmithKline Australia Pty Ltd, GSK’s pharmaceuticals and vaccines business reported revenue of $925 million for its continuing operations and a profit before tax of $17.6 million in 2015.  GSK is the largest supplier of vaccines to the Government’s National Immunisation Programme and has a strong respiratory business. 

Selling its Opiates business simplifies GSK’s operations in Australia and allows it to focus on delivering its innovative medicine portfolio, which is central to the company’s growth strategy.

“Our business changed significantly in 2015 due to the transaction with Novartis and the sale of the opiates business to Sun Pharmaceuticals.  These transactions allow us to focus on our core business of pharmaceuticals and vaccines,” said Geoff McDonald, General Manager GSK Pharmaceuticals Australia.

GSK Consumer Healthcare Australia

GSK Consumer Healthcare Australia is a new established company.  It acquired the consumer healthcare manufacturing and distribution activities (over the counter medicines, oral health and nutritional healthcare products) from GlaxoSmithKline Australia Pty Ltd.  It will acquire Novartis consumer healthcare products in 2016. 

The benefits of the joint venture with Novartis are already starting to become visible in Australia with the new entity already positioned as one of the fastest growing (+3.6%) in the Fast Moving Consumer Healthcare (FMCH) market in the last quarter of 2015.  GlaxoSmithKline Australia Pty Ltd continued to act as the distributor in Australia until transfer of market authorisations and operational cut-over in early September.

In 2015, GSK Consumer Healthcare reported revenue of $114.7 million and profit before tax of $18.9 million. 

“The ‘new’ GSK Consumer Healthcare brings together the strengths of two successful legacy companies to build an innovative new FMCH company with a portfolio of loved and trusted brands that are underpinned by science.  We believe our core differentiator remains our ability to understand consumer needs and leverage science to deliver consumer centric innovation. This considered alongside consumer trends and combined with market growth means we are very excited about the future,” said Elizabeth Reynolds, General Manager GSK Consumer Healthcare.

ViiV Healthcare Australia Pty Ltd

In 2015, ViiV Healthcare reported sales revenue of $58 million, a 70 per cent increase on the previous year, and profit before tax of $2.25 million growing by 75 per cent year on year. 

ViiV Healthcare was established in 2009 by GSK and Pfizer as a joint venture focused solely on developing treatments for people living with HIV.  Shionogi joined in 2012.  GSK owns 75 per cent of ViiV.

The launch of Tivicay® (dolutegravir)  in 2014 followed by the launch of Triumeq®, a triple combination of dolutegravir, abacavir and lamivudine in 2015 lead to the rapid growth of ViiV Healthcare in Australia.

“Very few people living with HIV experience AIDS because funded treatments are so effective.  However, with over 1,000 new infections reported in 2015, HIV treatment and prevention of new infection continue to be important health issues in Australia,” Michael Grant, Country Manager ViiV Healthcare Australia said.

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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 two 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 such as Panadol.