Pharmaceuticals turnover in the quarter was £4,189 million, up 17% AER, 4% CER. Respiratory sales grew 19% AER, 5% CER to £1,683 million, driven by the Ellipta portfolio and Nucala, while HIV sales were up 35% AER, 19% CER to £985 million, driven by a continued increase in market share for Triumeq and Tivicay. Sales of Established Pharmaceuticals grew 4% AER, but declined 6% CER, after the impact of recent divestments, which reduced overall Pharmaceuticals CER growth by one percentage point and also impacted the contribution from Emerging Markets. In the US, sales growth of 26% AER, 11% CER was driven by the HIV portfolio and new Respiratory products. Europe sales grew 8% AER but declined 2% CER reflecting continued generic competition to Seretide and the disposal of the Romanian distribution business in Q4 2016. International sales growth was impacted by the benefit to Q1 2016 of the accelerated sale of inventory under supply agreements to Novartis as well as the disposal of the thrombosis and anaesthesia businesses to Aspen, which reduced growth in Emerging Markets to 14% AER, 4% CER. Sales in Japan grew 23% AER, 4% CER. Respiratory Total Respiratory portfolio sales were up 19% AER, 5% CER, with the US up 21% AER, 6% CER, Europe up 10% AER but flat CER and International up 22% AER, 6% CER. Growth of the new Respiratory products more than offset the decline in Seretide/Advair. The new Respiratory products recorded combined sales of £367 million in the quarter with sales of Ellipta products up 82% AER, 60% CER driven by continued market share growth in all Regions and the ongoing roll-out across Europe and International. Sales of Nucala were £59 million in the quarter including sales of £42 million in the US, a Sterling increase of £36 million. The aggregate growth of the Ellipta products was primarily driven by the contribution of the US, where sales were up 76% AER, 55% CER. Total Relvar/Breo Ellipta sales grew 84% AER, 61% CER with the US up 95% AER, 70% CER to £111 million. Sales of Relvar/Breo Ellipta in Europe grew 63% AER, 47% CER, and in International 83% AER, 58% CER, helped by ongoing launches, particularly in Emerging Markets. Anoro Ellipta sales grew 88% AER, 67% CER to £62 million, reflecting market share gains in the US. In the US, Ellipta products Breo, Anoro and Incruse all continued to grow market share during the first quarter, but the reported sales growth rates for these products were impacted by inventory reductions in the channel and unfavourable payer rebate adjustments. Seretide/Advair sales were flat at actual rates, but declined 12% CER to £752 million. Sales in the US were also flat at actual rates but declined 12% CER (7% volume decline and a 5% negative impact of price). Payer rebate adjustments related to prior periods favourably impacted sales in this period. In Europe, Seretide sales were down 9% AER, 17% CER to £206 million (10% volume decline and a 7% negative impact of price), reflecting continued competition from generics and the transition of the Respiratory portfolio to newer products. In International, sales of Seretide were up 10% AER but down 4% CER, at £207 million, reflecting increased generic competition and the transition to newer Respiratory products. Ventolin sales grew 20% AER, 7% CER to £214 million, primarily reflecting growth in the US. Flixotide/ Flovent sales were up 7% AER, but decreased 5% CER to £164 million, with growth in International only partly offsetting the decline in the US. The overall impact on growth of payer rebate adjustments related to prior periods across the US Respiratory portfolio was broadly neutral. HIV HIV sales increased 35% AER, 19% CER to £985 million in the quarter, with the US up 43% AER, 25% CER, Europe up 17% AER, 5% CER and International up 47% AER, 27% CER. The growth in all three regions was driven by the continued increase in market share for Triumeq and Tivicay, with both products now well-established in most major markets and continuing to roll-out across International. The ongoing increase in patient numbers for both Triumeq and Tivicay resulted in sales of £539 million and £301 million, respectively, in the quarter. Epzicom/Kivexa sales declined 49% AER, 55% CER to £78 million, reflecting the continued increase in generic competition since Q3 2016. Selzentry sales increased 27% AER, 13% CER to £38 million helped by favourable inventory movements in the US. Immuno-inflammation Benlysta sales grew 40% AER, 22% CER to £91 million, driven by a strong US performance reflecting both market share gains and favourable inventory movements. Established Pharmaceuticals Sales of Established Pharmaceuticals in the quarter were £1,429 million, up 4% AER, but down 6% CER impacted by the comparison to the benefit in Q1 2016 of the accelerated sale of inventory under supply agreements to Novartis as well as the disposals of the Romanian distribution business in Q4 2016 and the thrombosis and anaesthesia businesses to Aspen during the quarter. Excluding the impact of the disposals, Established Pharmaceuticals grew 8% AER, but declined 3% CER. The Avodart franchise was up 21% AER, 6% CER to £160 million primarily due to a strong performance in Japan following supply interruptions in 2016. Established products sales grew 5% AER, but fell 5% CER to £640 million, primarily reflecting a decline in Emerging Markets, including the impact of competitive pressures on Zeffix in China. Dermatology sales grew 18% AER, 5% CER to £113 million, through improved supply, while Augmentin sales grew 12% AER, 4% CER to £155 million. Sales of products for Rare diseases grew 18% AER, 4% CER to £110 million. |
