Wiki source code of GlaxoSmithKline (GSK)

Version 10.1 by Asif Farooqui on 2022/06/23 03:17
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5 = Summary =
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7 * GSK a science-led global healthcare company with a special purpose to improve the quality of human life
8 * GSK develop and deliver medicines, vaccines and consumer healthcare products that impact human health at scale
9 * The company employ over 100,000 people across 92 countries and work directly with 37,500 suppliers
10 * In 2021 GSK delivering 1.7 billion medicines, over 767 million vaccines and 3.7 billion consumer healthcare products.
11 * GSK had 13 major new vaccines and medicines approved since 2017 and current pipeline comprises 64 potential vaccines and medicines at FY 2021
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13 [[image:GSK0.png||height="244" width="722"]]
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16 = Company Overview =
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19 GSK (NYSE:GSK, LSE:GSK) a science-led global healthcare company with a special purpose to improve the quality of human life by helping people do more, feel better, live longer.{{footnote}}https://www.gsk.com/en-gb/about-us/{{/footnote}}
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22 The company develop and deliver medicines, vaccines and consumer healthcare products that impact human health at scale. The company's operations span the value chain from identifying, researching, developing and testing ground-breaking discoveries, to regulatory approval, manufacturing and commercialisation.
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25 [[image:GSK1.jpg]]
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28 Beginning in 1715 with the opening of an apothecary shop in London, its story has always focused on innovation. From a selection of individual entrepreneurs to a global company of around 100,000 employees, The comapny developed a variety of medicines and healthcare products that form the foundations of today’s GSK.
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31 The greatest contribution the company make is to improve the health of people around the world. In 2021 that included delivering 1.7 billion medicines, over 767 million vaccines and 3.7 billion consumer healthcare products. Looking ahead, GSK has a clear ambition to positively impact the health of more than 2.5 billion people over the next ten years.
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34 The company employ over 100,000 people across 92 countries and work directly with 37,500 suppliers. In 2021 the company paid £1.3 billion in corporation tax, as well as a significant amount of other business and employment-related taxes.
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37 With its three global businesses of Pharmaceuticals, Vaccines and Consumer Healthcare, the company aim to bring differentiated, high-quality and needed healthcare products to as many people as possible.
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40 [[image:GSK2.png]]
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43 == Research and Development ==
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45 The company deliver its long-term priorities of Innovation, Performance and Trust through each of its three businesses which discover, develop and manufacture innovative pharmaceutical medicines, vaccines and consumer healthcare products.{{footnote}}https://www.gsk.com/en-gb/research-and-development/{{/footnote}}
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48 * Over 12,000 people working across its three global businesses
49 * £4.8bn its adjusted R&D investment in 2021
50 * The company's pipeline comprises 64 potential vaccines and medicines at FY 2021
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52 The company's current therapy areas of focus are Oncology, HIV, Infectious Diseases, Immuno-inflammation, Respiratory and Vaccines.
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55 GSK had 13 major new vaccines and medicines approved since 2017. This puts it in the top quartile in its industry. For 2018-20, the company had a greater than 90% success rate for its pivotal studies, compared to 77% across the industry. The company's 2017-20 number of launches per billion dollars of R&D spending was over 50% better than peer median.
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58 [[image:GSK3.png]]
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61 == Products ==
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63 The company make a wide range of prescription medicines, vaccines and consumer healthcare products.{{footnote}}https://www.gsk.com/en-gb/products/{{/footnote}}
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66 The company research and develop a broad range of innovative products in three primary areas of Pharmaceuticals, Vaccines and Consumer Healthcare
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69 === Prescription Medicines ===
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71 The company's pharmaceuticals business discovers, develops and makes medicines to treat a broad range of the most common acute and chronic diseases
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74 === Vaccines ===
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76 The company's vaccines business develops, produces and distributes around 2 million vaccines every day to people across over 160 countries covering all age groups.
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78 * Infants and children
79 * Adolescents and adults
80 * Travellers
81 * Older adults
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83 === Consumer Healthcare Products ===
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85 When experiencing discomforts like sensitive teeth, colds and flu or joint pain, its everyday healthcare products will help you enjoy again.
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88 GSK is one of the world's largest providers of specialist oral health. With a broad range of science-based products, such as Sensodyne, parodontax and Polident, its goal is to make the world's mouths healthier.
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91 The company's portfolio of leading brands in cold and flu, nasal decongestant and allergy helps people worldwide with a range of respiratory issues.
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93 Whether using Otrivin to clear a blocked nose or Theraflu to fight multiple cold and flu symptoms like fever, nasal congestion and cough, its respiratory products use cutting-edge science to help people breathe more easily.
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96 GSK is a world leader in first-line pain relief. World-leading brands such as Panadol, Voltaren and Advil help people manage their symptoms so they can enjoy life to the full.
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99 GSK has a category leading portfolio of brands to improve everyday health and wellness.
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102 Centrum is the number one selling multivitamin and mineral brand globally, available in more than 70 markets. The company also have leading brands within the category in areas like calcium supplements through its Caltrate brand and vitamin C supplements through Emergen-C, the number one pharmacist recommended brand in the US.
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105 The company's digestive health products bring reassuring comfort to millions of people worldwide.
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108 GSK has a portfolio of trusted, market leading brands, including Eno and Tums with a strong heritage in treating heartburn, acid indigestion and gastric discomfort.
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111 [[image:GSK4.jpg]]
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114 === ViiV Healthcare ===
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116 The company's HIV business is managed through ViiV Healthcare, a global specialist HIV company established in 2009, that the company majority own, with Pfizer and Shionogi as shareholders. A leading global company focused on advancing science into HIV treatment, prevention and care, ViiV Healthcare has had significant recent successes with regulatory approvals and industry leading launches of new antiretrovirals.
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119 ViiV Healthcare’s current portfolio of 15 HIV treatments generated annual sales of £4.777 billion in 2021. A pipeline of potential future antiretroviral medicines is also in clinical development.
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122 === Stiefel dermatology ===
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124 Stiefel has a long history of excellence in dermatology and R&D focused in acne, psoriasis, eczema, atopic dermatitis and superficial skin infections.
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127 The company's portfolio ranges from prescription to daily skincare, so that the company can offer quality, science-led products that help meet individual treatment needs and improve overall quality of life for people with skin conditions.
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130 [[image:GSK5.jpg]]
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133 = Financial Highlights =
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135 Group turnover was £34,114 million in the year, stable at AER but up 5% CER. Sales of COVID-19 solutions (sales of Xevurdy and pandemic adjuvant) contributed approximately 4 percentage points to growth in the year.{{footnote}}https://www.gsk.com/media/7462/annual-report-2021.pdf{{/footnote}}
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138 Pharmaceutical turnover in the year was £17,729 million, up 4% AER and 10% CER. Sales of Xevudy, the monoclonal antibody treatment for COVID-19 of £958 million contributed approximately 6 percentage points to total Pharmaceuticals growth.
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141 Vaccines turnover was £6,778 million in the year, down 3% AER but up 2% CER, primarily driven by pandemic adjuvant sales, partially offset by lower demand for routine adult vaccination due to COVID-19 vaccination programme deployment and disease circulation across regions. Vaccines turnover excluding pandemic vaccines decreased 9% AER, 5% CER to £6,331 million.
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144 Consumer Healthcare turnover was £9,607 million, down 4% AER but remained stable at CER reflecting dilution from divestments given the completion of the portfolio rationalization at the end of Q1 2021. Sales excluding brands divested/under review decreased 1% AER but increased 4% CER reflecting the underlying strength of brands across the portfolio and categories and continuing growth in e-commerce.
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147 Total operating profit was £6,201 million compared with £7,783 million in 2020. This primarily reflected an unfavourable comparison to the net profit on disposal in Q2 2020 of Horlicks and other Consumer brands and resultant sale of shares in Hindustan Unilever. This was partly offset by lower major restructuring costs, lower re-measurement charges on the contingent consideration liabilities and the unwind in 2020 of the fair market value uplift on inventory arising on completion of the Consumer Healthcare Joint Venture with Pfizer.
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150 Adjusted operating profit was £8,806 million, 1% lower than 2020 at AER, but 9% higher at CER on a turnover increase of 5% CER. The Adjusted operating margin of 25.8% was 0.3 percentage points lower at AER, 0.9 percentage points higher on a CER basis than in 2020. The increase in Adjusted operating profit primarily reflected the benefit from incremental pandemic sales, sales growth in Pharmaceuticals and tight control of ongoing costs, favourable legal settlements and benefits from continued restructuring across the business. This was offset by lower sales in Vaccines, higher supply chain costs in Vaccines and Consumer Healthcare, divestments in Consumer Healthcare and increased investment in R&D across Vaccines and Pharmaceuticals.
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153 Total EPS was 87.6p, compared with 115.5p in 2020. This primarily reflected an unfavourable comparison as 2020 benefited from the net profit on disposal of Horlicks and related transactions, partly offset by a credit of £397 million to Taxation in 2021 resulting from the revaluation of deferred tax assets, lower major restructuring costs and lower re-measurement charges on the contingent consideration liabilities. Adjusted EPS was 113.2p compared with 115.9p in 2020, down 2% AER but up 9% CER, on a 9% CER increase in Adjusted operating profit primarily reflecting incremental pandemic sales, sales increases in Pharmaceuticals, tight cost control and favourable legal settlements and lower interest costs, partly offset by lower sales in Vaccines, higher supply chain costs in Vaccines, increased R&D investment and a higher effective tax rate.
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156 The net cash inflow from operating activities for the year was £7,952 million (2020 – £8,441 million). The decrease primarily reflected adverse exchange impacts, increased trade receivables, adverse timing of returns and rebates (RAR) and increased separation costs, partly offset by improved adjusted operating profit at CER and reduced tax payments including tax on disposals.
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159 **Q1 2022 Results**
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161 Total turnover in the quarter was £9,780 million, up 32% AER, 32% CER, reflecting a strong performance in Commercial Operations in the three product groups and Consumer Healthcare. Sales of Xevudy were £1,307 million and contributed 25 percentage points of growth in the quarter to Commercial Operations. Specialty Medicines included the positive impact of international tender phasing, Vaccines benefited from Shingrix post-pandemic recovery and retail buy-in in the US and General Medicines reflected growth from Trelegy and recovery of the antibiotics market.{{footnote}}https://www.gsk.com/media/7639/q1-2022-announcement.pdf{{/footnote}}
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164 Specialty Medicines turnover was £3,135 million, up 98% AER, 97% CER, driven by consistent growth in all therapy areas including sales of Xevudy. Sales growth was up 16% AER, 15% CER excluding Xevudy.
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167 Vaccines turnover grew 36% AER, 36% CER to £1,669 million, driven primarily by Shingrix in the US and Europe reflecting strong performance and the benefit of a favourable comparator in Q1 2021 when sales were impacted by COVID-19 related disruptions in several markets and lower Centre for Disease Control (CDC) purchases.
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170 General Medicines turnover was £2,343 million, up 2% AER, 3% CER, with growth from Trelegy in all regions, recovery of the antibiotics market and the benefit of a favourable prior period returns and rebates (RAR) adjustment, offsetting the impact of generic competition in US, Europe and Japan.
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173 Consumer Healthcare grew 14% AER, 14% CER to £2,633 million. Total sales grew 15% AER, 16% CER, excluding the impact of brands divested, with strong growth across all categories.
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176 Total operating profit was £2,801 million compared with £1,693 million in Q1 2021. This included £924 million upfront settlement income from Gilead, increased profits on turnover growth of 32% at CER, partly offset by higher remeasurement charges for contingent consideration liabilities and lower profits on disposals. Adjusted operating profit was £2,613 million, 39% higher than Q1 2021 at AER and at CER. The Adjusted operating margin of 26.7% was 1.4 percentage points higher at AER and 1.3 percentage points higher on a CER basis than in Q1 2021. The benefit from COVID-19 solutions sales (Xevudy) contributed approximately 11% AER, 11% CER to Adjusted Operating profit growth.
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179 Total EPS was 35.9p compared with 21.5p in Q1 2021. This primarily reflected leverage from significant sales growth during the quarter, with the upfront income of £924 million from the settlement with Gilead partly offset by an increase in finance costs.
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182 Adjusted EPS was 32.8p compared with 22.9p in Q1 2021, up 43% at AER, 43% CER, on a 39% CER increase in Adjusted operating profit primarily reflecting sales of Specialty Medicines and Vaccines, including COVID-19 solutions sales, tight cost control and a lower effective tax rate. These were partly offset by higher supply chain costs, increased R&D investment, favourable legal settlements in Q1 2021 and higher interest costs. The contribution to growth from COVID-19 solutions was approximately 15% at AER, 15% at CER.
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185 The cash generated from operations for the quarter was £2,755 million (Q1 2021: £486 million). The increase primarily reflected a significant increase in operating profit including the upfront income from the settlement with Gilead, favourable timing of collections and profit share payments for Xevudy sales and a lower seasonal increase in inventory
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188 [[image:GSK6.jpg]]
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191 = Recent developments =
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193 **Proposed demerger of the Consumer Healthcare business from GSK to form Haleon **{{footnote}}https://www.gsk.com/en-gb/media/press-releases/update-proposed-demerger-of-the-consumer-healthcare-business-from-gsk-to-form-haleon/{{/footnote}}
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196 1 June 2022; GSK plc intention to separate its Consumer Healthcare business from the GSK Group to form Haleon plc (“Haleon”), an independent listed company. It is proposed that the separation will be effected by way of a demerger (the “Demerger”) of at least 80 per cent. of GSK’s 68 per cent. holding in the Consumer Healthcare business to GSK shareholders. The Consumer Healthcare business is currently a joint venture between GSK and Pfizer Inc (“Pfizer”), with GSK holding a majority controlling interest of 68 per cent. and Pfizer holding 32 per cent.
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199 GSK today confirms that the Circular in relation to the proposed Demerger, the consolidation of GSK shares (the “GSK Share Consolidation”) and certain new arrangements with Haleon and Pfizer to give effect to the Demerger (the “Related Party Transactions”), as well as the Prospectus in relation to the proposed admission of the Haleon ordinary shares, have each been submitted to the Financial Conduct Authority (“FCA”) for approval.  It is expected that the Haleon ordinary shares will be admitted to the Premium listing segment of the Official List of the FCA and admitted to trading on the Main Market of the London Stock Exchange on Monday 18 July 2022. Application will also shortly be made to list American Depositary Shares (“ADSs”) representing Haleon ordinary shares on the New York Stock Exchange.
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202 The proposed Demerger is the most significant corporate change for GSK in the last 20 years, creating two new leading companies, each with clear targets for growth and the ability to positively impact the health and lives of billions of people.
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205 Following the Demerger, GSK will focus purely on biopharmaceuticals, prioritising investment towards the development of innovative vaccines and specialty medicines. Its R&D approach will continue to focus on the science of the immune system, use of human genetics and advanced technologies. Over the next five-year period, GSK expects to deliver compound annual growth in sales and adjusted operating profit of more than 5 per cent. and more than 10 per cent., respectively, at constant exchange rates (with 2021 as the base year).
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208 Haleon is a new, world-leader in consumer healthcare with a clear strategy to outperform and run a responsible business. For prospective investors, it will offer an exceptional and focused portfolio of category-leading brands with an attractive footprint and competitive capabilities; a highly attractive financial profile of above market, medium-term annual organic revenue growth of 4 to 6 per cent. combined with sustainable moderate, adjusted margin expansion on a constant currency basis, with strong cash generation and conversion.
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211 The Demerger is conditional on, among other things, the approval by GSK shareholders of the Demerger, the GSK Share Consolidation and the Related Party Transactions at a General Meeting, the receipt of all necessary mandatory governmental/regulatory approvals and the final approval of the Demerger by the GSK Board.
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215 **GSK announces US FDA approval of Priorix for the prevention of measles, mumps and rubella in individuals 12 months of age and older.**{{footnote}}https://www.gsk.com/en-gb/media/press-releases/gsk-announces-us-fda-approval-of-priorix-for-the-prevention-of-measles-mumps-and-rubella-in-individuals-12-months-of-age-and-older/{{/footnote}}
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217 6 June 2022; GSK plc announced that the US Food and Drug Administration (FDA) has approved Priorix (Measles, Mumps and Rubella Vaccine, Live) for active immunisation for the prevention of measles, mumps and rubella (MMR) in individuals 12 months of age and older.
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220 Priorix is currently licenced in more than 100 countries worldwide, including all European countries, Canada, Australia and New Zealand, with more than 800 million doses distributed to date.
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223 “We’re proud to make Priorix available in the US for the first time, adding a choice for providers to help protect patients against these highly-contagious diseases and to further strengthen offerings in its paediatric vaccine portfolio,” said **Judy Stewart, Senior Vice President and Head of US Vaccines, GSK.**
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226 Measles, mumps and rubella are acute and highly-contagious viral diseases responsible for considerable morbidity and mortality throughout the world. In recent years, measles outbreaks have occurred in the US and globally, with more than 400,000 cases confirmed in 2019, reversing decades of progress toward measles elimination in many countries.
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229 According to a recent US Centers for Disease Control and Prevention (CDC) report, vaccine ordering in the past two years through the CDC’s Vaccines For Children programme, the federal programme through which about half of the children in the country are immunised, dropped more than 10%, indicating that fewer vaccinations in children were occurring. The report also noted 400,000 fewer children entered kindergarten in the 2020-2021 school year than expected nationally, meaning those children may not be up to date on childhood immunisations like their MMR vaccination.
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232 “Outbreaks of measles in recent years demonstrate how quickly diseases can return without widespread immunisation. Missed vaccinations during the pandemic makes children even more vulnerable to vaccine-preventable diseases like measles,” said Temi Folaranmi, MD, Vice President and Vaccines Therapeutic Area Head, US Medical Affairs, GSK. “Making Priorix available to patients in the US will ensure health care professionals have more than one option for this critical vaccine as they work to catch their patients up on recommended vaccinations.”
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235 The safety of Priorix was evaluated in six clinical studies, in which a total of 12,151 participants (6,391 in the US) received at least one dose of Priorix: 8,780 children (4,148 in the US) 12 through 15 months of age; 2,917 children (1,950 in the US) 4 through 6 years of age; and 454 adults and children (293 in the US) 7 years of age and older. The most commonly reported adverse reactions were pain, redness, swelling, loss of appetite, irritability, drowsiness and fever. The efficacy of Priorix was demonstrated based on immunogenicity data versus the comparator vaccine.
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238 Priorix will provide US healthcare professionals with another MMR vaccine choice. Priorix may be administered as a first dose, followed by a second dose of Priorix. Priorix may also be administered as a second dose to individuals who have previously received the first dose of another MMR-containing vaccine.
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241 The CDC recommends people get a MMR vaccine to protect against measles, mumps and rubella. Children should get two doses of MMR vaccine, starting with the first dose at 12 through 15 months of age, and the second dose at 4 through 6 years of age. Teens and adults should also be up to date on their MMR vaccination
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244 Priorix is scheduled to be on the agenda for the June CDC Advisory Committee on Immunization Practices (ACIP) meeting for consideration of formal inclusion into the vaccine schedule and recommendations.
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247 = References =
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249 {{putFootnotes/}}
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