| GlaxoSmithKlinec reported 11 percent rise in third quarter |
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28/10/2009 18:48 (103 Day 23:45 minutes ago) | |||||
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The FINANCIAL -- Drug maker GlaxoSmithKline PLC (GSK.LN) posted on October 28 an 11 percent rise in third quarter earnings on the back of strong sales in emerging markets.
London-based Glaxo reported net profit of 1.44 billion pounds ($2.35 billion) for the three months to Sept. 30, compared to 1.29 billion pounds a year ago, AP reported. Revenue rose 15 percent to 6.76 billion pounds. Glaxo, which has been hit by rising competition from generic versions of its previously patented drugs, is expected to receive an earnings windfall from products dashed out in response to the H1N1 flu virus.
Chief Executive Officer Andrew Witty said that a market consensus forecast that Glaxo will make around 1 billion pounds in sales of H1N1 vaccines in the fourth quarter "is pretty accurate," according to the same source. "In the fourth quarter, I expect further improvement including significant sales generated from our influenza products," Witty told reporters on a conference call immediately after the results were released.
Witty has made at least a dozen licensing deals or acquisitions since taking over in May 2008 to make up for revenue lost to generic versions of drugs, including Lamictal for epilepsy and the Imitrex migraine pill, Bloomberg wrote. Witty has called 2009 a “year of two halves,” saying the worst of Glaxo’s patent expiries are over and sales of swine flu treatments will shore up second-half revenue.
“After 11 straight quarters of declining sales growth, it’s good to see sales growth is positive,” Royal Bank of Scotland analyst Michael Leacock said in an interview, according to the same source. “I’m a bit cautious though because of the one-off nature of swine flu products, and I recognize 2010 will be challenging because of the loss of Valtrex” antiviral medicine, which faces generic threats as soon as the fourth quarter, he said.
Witty raised the dividend for the quarter from 14p to 15p on the back of the results, Telegraph wrote. The improvement in sales, which equates to 3pc growth on a constant currency basis, was achieved despite a 12pc fall in the key US market. Emerging markets sales rose 25pc while consumer healthcare, which includes products such as Lucozade and Aquafresh, rose 8pc.
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