GlaxoSmithKline net earnings jump by 68% in Q3 to £647 mn

Pharmabiz 30/10/2015
Our Bureau
Mumbai, Oct 29 : GlaxoSmithKline (GSK), which completed Novartis transaction in March 2015, has posted strong bottom line growth in the third quarter ended September 2015. Its net earnings went up sharply by 68.1 per cent to £647 million from £385 million in the corresponding quarter of last year. Its turnover improved by 8.5 per cent to £6,127 million from £5 646 million. EPS moved up to 11.1 pence from 8.3 pence.
After Novartis transaction, GSK reported year to date results include seven month's turnover of the former Novartis vaccines and consumer healthcare products and exclude sales of the former GSK oncology business from March 2, 2015.
Its sales of global pharmaceuticals declined by 17 per cent to £2,718 million from £3,273 million in the similar period of last year mainly due to the disposal of the oncology business to Novartis. However, the sales of ViiV Healthcare increased sharply by 66.8 per cent to £622 million from £373 million. Its vaccines sales increased by 29.8 per cent to £1,181 million from £910 million and that of consumer healthcare increased by 48.1 per cent to £1,576 million from £1,064 million. Its US sales increased by 10 per cent to £2,214 million and that in Europe moved up by 15 per cent to £1,612 million.
Its R&D expenditure increased by 3 per cent to £827 million from £803 million in the same quarter of last year. However, its selling, general and administration expenses declined by 2.2 per cent to £1,968 million from £2,013 million.
Sir Andrew Witty, CEO, said, “This quarter's performance reflects continued execution of our strategy. The benefits of the recent 3-part transaction are becoming evident in our sales and earnings performance and we have made good progress on our restructuring and integration programmes during the quarter.”
“Pro-forma sales growth in the quarter came from all three business. In consumer healthcare the recently switched Rx/OTC product Flonase contributed to sales growth of 7 per cent. In our pharmaceutical and vaccines businesses, sales of new products were £591 million, more than offsetting the decline in Seretide/Advair sales of £182 million and demonstrating progress in transitioning to our new portfolio. HIV remains the standout performer with sales increasing 65 per cent, reflecting continued strong momentum from Tivicay and Triumeq,” he added.
GSK has a pipeline of more than 40 NMEs in in phase II/III clinical development, primarily focused on HIV, oncology, vaccines, immuno-inflammation, respiratory diseases and rare diseases.
For the nine months ended September 2015, GSK's turnover increased by 4.9 per cent to £17,637 million from £16,820 million in the corresponding period of last year. Its net profit went up sharply to £8,800 million from £1,806 million due to other income of £8,253 million in the September quarter. Its pharmaceuticals sales declined by 10.9 per cent to £3,188 million from £3,577 million. Vaccines sales improved by 2 per cent to £802 million from £786 million and that of consumer healthcare moved up by 37.7 per cent to £500 million from £363 million. Its R&D expenditure increased by 1.4 per cent to £2,506 million from £2,471 million.