GSK Annual Report 2002

68 GlaxoSmithKline Operating and financial review and prospects
The performance of the herpes treatments Valtrex and Zovirax
produced a combined sales growth of five per cent. In the USA
Valtrex sales were helped by a DTC advertising campaign and the
approval in the USA of a shorter, three-day, course of therapy for
recurrent genital herpes. The decline of Zovirax in some regions of
the world resulted from both a transfer to the newer Valtrex
product and generic competition.
Metabolic and gastro-intestinal
Avandia, a glitazone for the treatment of type 2 diabetes, was
the key driver of growth in the metabolic and gastro-intestinal
therapy area. In the USA Avandia sales benefited from increased
acceptance of this revolutionary class of drugs to record growth
of 37 per cent. Avandia, launched in China and Italy in 2001, and
approved in over 70 countries, was filed for marketing approval in
Japan in December.
Sales of Zantac continued their decline in the face of generic
competition.
Vaccines
Infanrix, GlaxoSmithKline’s combination vaccine for diphtheria,
tetanus and pertussis (whooping cough) drove total vaccines
sales growth of 10 per cent. This together with strong growth by
Priorix, Tritanrix and Typherix more than offset a decline in the
hepatitis portfolio of Twinrix, Havrix and Engerix-B. Subsequent to
the year end GlaxoSmithKline announced the discontinuation of
LYMErix in the USA as a result of poor demand for the product.
Oncology and emesis
The continued sales growth of Zofran, used for management of
nausea and vomiting associated with chemotherapy and
radiotherapy cancer treatment, benefited the oncology and emesis
therapy area which grew by 14 per cent overall. Sales of Hycamtin,
approved for the treatment of recurrent ovarian cancer, declined
by nine per cent, principally as a result of adverse wholesaler
buying patterns in the USA.
Cardiovascular
Sales of Coreg grew 56 per cent. In November the FDA gave it
approval for the treatment of severe heart failure. Coreg is the
only beta-blocking agent indicated to increase survival in mild,
moderate, and severe heart failure patients. GlaxoSmithKline has
exclusive rights to market Coreg in the USA.
Other therapeutic areas
Sales of Relafen for arthritis fell reflecting generic competition in
the USA.
Regional analysis
USA
The Group earned 53 per cent of total pharmaceutical revenue
in the USA in the year, recording a growth of 16 per cent.
Advair/Seretide launched in mid-April 2001 achieved sales of
£328 million. Although this launch slowed sales growth of its
constituent products, Flixotide/Flovent and Serevent, combined
sales of these three products amounted to £1,179 million with
growth of 52 per cent.
In the CNS therapeutic area Seroxat/Paxil, launched for generalised
anxiety disorder in April, grew strongly and Wellbutrin continued
its good growth record. Both of these products benefited from the
growing anti-depressant market in the USA. Lamictal, indicated for
epilepsy, grew 23 per cent.
In the anti-bacterials sector Augmentin reflected gains in share of
both the adult and paediatric markets. Growth was bolstered by
the launch of the ES (extra strength) formulation, which is indicated
for the treatment of children with acute otitis media (middle ear
infections).
The combination treatment Trizivir was launched into the US market
in late 2000. Sales in its first full financial year amounted to
£115 million helping to produce 11 per cent sales growth in the
HIV/AIDS sector of anti-virals. Also in the anti-virals market, Valtrex
for herpes showed a strong performance.
Europe
Europe region contributed 26 per cent of pharmaceutical sales
with the largest market, France, showing strong growth. Good
growth was recorded in other major markets including Italy, Spain
and Central and Eastern Europe. Seretide was a major sales driver
in the region although, as in the USA, this affected sales of its
constituent products. Seretide/Advair was the largest product in
Europe with sales of £441 million.
In the CNS area Seroxat, coupled with the launch of Zyban in most
markets, contributed most of the growth. Launches of Trizivir
helped produce a 16 per cent growth in the HIV/AIDS sector.
In metabolic and gastro-intestinal, Zantac sales continued to decline
in the face of increased generic competition. This was partially
offset by the performance of Avandia with launches in a number
of markets including the UK and Germany.
Anti-bacterials declined one per cent reflecting generic competition
for Augmentin and Amoxil. Vaccines showed no growth due to a
decline in the hepatitis market in Germany, although sales improved
in other European countries principally UK, Spain and Italy.
In the Oncology area most of the growth was attributable to strong
sales of Zofran in France and Germany offset by a decline in
Hycamtin sales in most European countries.
International
A 10 per cent sales growth in the International region reflected
strong growth in all major markets in this region.
The market growth in Japan was driven by a number of therapeutic
areas. The launch of the tablet form of Imigran in August 2001
and Seroxat in late 2000 were key drivers. The switch from
Becotide to the newer product Flixotide and from Zovirax to the
newer Valtrex contributed to the sales growth of the newer
products but led also to a decline in the older products.
In Canada significant growth was achieved by Seretide and
Avandia, which was launched in March 2001. In other therapeutic
areas, Trizivir for HIV treatment was launched in November.
Seven per cent of total sales were derived from the Asia Pacific
area, principally Australia, where sales growth was 17 per cent.
The metered dose inhaler of Seretide was launched in this
market in May. Sales of Zyban grew after its successful launch
in late 2000.