Glaxo eyes boost from new products
Drug maker GlaxoSmithKline today said a pipeline of new products would help sustain growth as it revealed a rise in underlying sales.
The pharmaceuticals company said a range of new drugs – including for epilepsy, lupus and rotavirus – should help it boost its margins in the year ahead.
GSK said underlying sales, which exclude sales of scrapped diabetes blockbuster Avandia, pandemic flu vaccines and antiviral drug Valtrex, rose 5% in the quarter. Total sales declined 4% but this was an improvement on the previous two quarters.
The company reported pre-tax profits before major restructuring in the three months to June 30 were £1.27bn, compared to £130m a year earlier. However, last year’s figure included a huge £1.57bn legal charge.
GSK is undergoing a restructuring which includes plans to sell off some of its lesser known consumer brands, which are mainly sold in the US and and Europe, to allow it to focus on its blockbuster names such as Lucozade, Sensodyne, Horlicks and Panadol.
The company reported a 60% drop in annual profits for 2010 after it paid out £4bn to resolve legal disputes following claims about the alleged side-effects of some of its drugs.
