GlaxoSmithkline plc, UK, has achieved significant growth in profitability during the year ended December 2005 on account of enhance sales of its key products viz., Seretide/Advair, Avandia/Avandamet and vaccines. The net profit moved up by 17 per cent to £4,816 million from £4,022 million in the previous year. Its turnover increased by 7 per cent to £21,660 million from £19,986 million. Earning per share went up to 82.6 pence from 68 pence in 2004, registering a rise of 18 per cent. The company stepped up its equity dividend to 44 pence from 42 pence in the last year.
Commenting on performance, JP Garnier, chief executive officer, said "GSK's fourth quarter performance was a great finish to an excellent year for the company. Looking into 2006, the strong growth seen from key products such as Seretide/Advair, Avandia and from our vaccines business is set to continue, and we expect further good news on GSK's late-stage pipeline. Eight major assets are scheduled to enter phase III in2006. This will double the number of assets in late-stage development. I am also delighted that Cervarix, our cervical cancer vaccine, is expected to be filed for approval in Europe in the few weeks and in the US before the end of the year."
GSK's total pharmaceutical turnover grew by 8 per cent to £18.7 billion in 2005, with balance growth across all regions. Its pharma sales in the US and Europe increased by 8 per cent to £9.1 billion and £5.6 billion respectively. International market saw growth of 9 per cent at £4 billion. Its biggest-selling product, Seretide/Advair for asthma and COPD, continues to perform well with sales up by 22 per cent to just over £3 billion. GSK reported sales of Avandia/Avandamet at £1.3 billion and continues to maintain its leadership position in the TZD Class of anti diabetic agents. Other key growth drivers for the year 2005 included Valtrex for herpes Coreg for heart disease and lamctal for epilepsy and bipolar disorder.
Its vaccines business performed well with total sales rising 15 per cent to £1.4 billion, led by Infanrix. Vaccine sales were particularly strong in the US, where turnover rose 26 per cent to £338 million, helped by the launch of two new products - Fluarix and Boostrix. Its R&D expenditure increased by 8 per cent to £ 3,136 million from £2,904 million in 2004. R&D expenditure as a percentage of turnover was 14.5 per cent in line with 2004.