GSK’s 2016 results beyond expectations

UK-based GlaxoSmithKline reported to the financial community its 2016 results, which are beyond analyst’s expectations. In fact, these are the last results for outgoing CEO Andrew Witty, who will step down at the end of March in favor of Emma Walmsley, one of the very few female CEOs in the big pharma arena. Sales in 2016 totaled GBP27.9bn, which represents a 17% growth over 2015 on a constant currency basis. Core operating profit increased by 36% to GBP7.7bn and EPS was 102.4p (+35% on a constant currency basis). Results from the new products for key areas such as HIV treatments, respiratory treatments and vaccines (meningitis) are highly positive as well. These drugs doubled their sales to GBP4.5bn. The respiratory treatment area keeps playing a key role for GSK, especially thanks to Advair. However, the blockbuster keeps losing market share due to competition from generics. The new product Relvar (Breo in the US) impressed investors: its steady growth in sales (GBP620m) partially offset the revenue loss caused by Advair. (Source GSK)