GSK Australia Reports 2016 results to ASIC

GlaxoSmithKline (GSK) Australia has reported its 2016 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).

Pharmaceuticals and vaccines

Operating under GlaxoSmithKline Australia Pty Ltd, GSK’s pharmaceuticals and vaccines
business reported revenue of $943 million in 2016 and a profit before tax of $47 million.

GSK’s new respiratory assets continued to grow in 2016 building on GSK’s leadership in respiratory medicines.

GSK is the largest supplier of vaccines to the Australian Government’s National Immunisation Program. This was strengthened in 2016 when GSK was awarded the majority share of the annual flu immunisation program.

Exports from our manufacturing facility in Boronia continue to represent a significant proportion of our revenue in Australia. GSK invested in a new pilot vaccine facility at the end of 2015 using blow-fill seal technology. Progress continued in 2016 as stability and quality tests were carried out on the new technique.

In 2016, GSK transformed its business model delivering on its commitment to increase transparency and introduce a new model for medical education. GSK strengthened its dedicated medical and scientific capability, and improved the way its supports medical education. In parallel, GSK was the first company to end direct payments to prescribers to speak about its medicines and vaccines. This build on the changes made in 2015 to no longer incentivise sales representatives on individual sales targets.

“We introduced changes to the way we work with healthcare professionals in 2016, with the aim of bringing greater clarity and confidence that whenever we talk to a doctor, nurse or other prescriber, it is patients’ interests that always come first,” said Anne Belcher, General Manager GSK Pharmaceuticals Australia.

GSK Consumer Healthcare Australia

In February 2016, GSK Consumer Healthcare Australia acquired the Australian consumer healthcare activities of Novartis Consumer Health Australasia Pty Ltd in continuation of the global 3-part transaction.

With this transaction completed and the effective transfer of the market authorisations in June 2016, GSK Consumer Healthcare Australia becomes the prime distributor for the combined GSK-Novartis consumer healthcare portfolio in Australia.

In 2016, GSK Consumer Healthcare reported revenue of $411 million and profit before tax of $33 million. The Panadol franchise continues to be the leading brand for oral pain management. This is complemented by GSK’s Voltaren franchise for topical pain. GSK Consumer Healthcare has a strong presence in therapeutic oral care with Sensodyne for sensitive teeth and Polident for denture care.

On 3rd of November 2016, GSK announced that they will close their Consumer Healthcare manufacturing facility in Ermington, Australia in year 2020. This closure is to be a phased closure over the next four years as production is gradually transferred to a combination of other GSK sites in the GSK manufacturing network and third-party contract manufacturers.

“Australian consumers are increasingly taking charge of their health and healthcare decisions. The rise of self-care in Australia is fuelled by an ageing population, better access to health information and a growing interest in preventative health. As a leader in pain management and specialist oral health with expertise in respiratory we are well-placed to support consumers looking to manage their health proactively,” said Elizabeth Reynolds, General Manager GSK Consumer Healthcare.

ViiV Healthcare Australia Pty Ltd

In 2016, ViiV Healthcare reported sales revenue of $78 million, a 35 per cent increase on the previous year, and profit before tax of $2.7 million growing by 20 per cent year on year. This continues its strong growth in 2015.

Growth was primarily driven by Triumeq®, a triple combination of dolutegravir, abacavir and lamivudine launched in 2015.

“Twenty years after the introduction of highly active antiretroviral therapy for HIV, people are now living with the infection long-term. We are dedicated to improving the health and well-being of people living with HIV and reducing the impact of the virus in the community. We will continue our pursuit of treatment innovation and improvements and join all stakeholders to achieve the ambitious goals of the National HIV Strategy.,” Michael Grant, Country Manager ViiV Healthcare Australia said.

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 78% per cent of ViiV.

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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 employees 1250 people and 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.