No suprises in store from GlaxoSmithKline, say analysts
Analysts are expecting few surprises when GlaxoSmithKline reveals its first quarter results tomorrow.
They said teething problems arising from the merger of Glaxo Wellcome and SmithKline Beecham will have been ironed out, creating a positive performance.
Pre-tax profits of £1.33bn are predicted on the back of key products such as Seretide, Avandia, Paxil and Augmentin.
Sales performance by the new combined operation will be watched closely as two new drugs, Seretide and Avantia, are expected to post growth rates of 120% and 80% respectively.
GlaxoSmithKline's UK sales benefited from increased sales of Seretide and a successful launch of Zyban, but overall sales declined slightly due to competition with rival brands.
Morten Herholdt, of Barclays stockbrokers, said the group has experienced the benefits of a strong dollar.
But he cautions: "There are concerns that by 2003-2004, there will be a slowing down due to a lack of new drugs being launched.
GlaxoSmithKline may seek strengthen their position in the future with further acquisitions."
Phillip Shannon, of Gerrard stockbrokers, said: "Sales of flu drugs have been depressed throughout the winter, thanks to a lower than usual incidence of the disease, but on the whole, there should be no surprises tomorrow."
His comments are echoed by Peter Cartright, of Williams de : "GlaxoSmithKline is approaching the point where it becomes a benchmark stock. The key to tomorrow's results will be evidence of double-digit growth."
