GlaxoSmithKline plc (GSK) posted improved performance during the second quarter ended June 2006 on account of better growth in pharmaceutical and vaccines sales. The company's turnover touched to pound 5,811 million from pound 5,246 million in the corresponding period of last year, a growth of 10.8 per cent. Its net profit went up by 12.4 per cent to pound 1337 million from pound 1189 million. The earning per share touched to 23.3 pence from 20.4 pence in the last period.
J P Garnier, CEO, said, "GSK has had another successful quarter with pharmaceutical sales growth of 10 per cent driving an excellent financial performance and enabling us to raise our earnings guidance to around 12 per cent EPS growth in 2006. The pipeline is progressing well and we have also just received outstanding efficacy data for our H5N1 pandemic vaccine - these results are highly significant and mark real progress in our aspiration to develop a vaccine for use in preparing for an influenza pandemic."
Pharmaceutical turnover rose by 10 per cent to pound 5 billion, driven by a strong performance in the US. As expected, sales in Europe have been impacted by generic competition to several key products this year, including Lamictal, Imigran and Zofran. However, continued strong growth from seretide, avandia and vaccines has offset this impact with overall sales in Europe level at pound 1.4 billion for the quarter. Vaccinces sales rose by 17 per cent to pound 387 million.
For the first half GSK's turnover improved by 13.1 per cent to pound 11,624 million from pound 10,282 million in the corresponding first half of the last year. Its net profit improved by 15 per cent to pound 2,867 million from 2,412 million. R&D expenditure increased by 15 per cent to pound 1,606 million.