GlaxoSmithKline (GSK) has received a set back during the second quarter ended June 2013 and its net profit declined by 16.8 per cent to £1,084 million from £1,303 million in the corresponding period of last year and its operating profit went down by 16.1 per cent to £1,438 million. Its net sales, however, improved marginally by 2.4 per cent to £6,618 million from £6,462 million.
The pharmaceutical and vaccines sales increased by 2 per cent to £5,309 million during the second quarter ended June 2013 from £5,205 million in the last period. The pharmaceutical sales 1.8 per cent to £4,523 million and vaccines sales increased by 3 per cent to £786 million. Consumer healthcare segment registered a growth of 4.1 per cent to £1,309 million from £1,257 million.
GSK's US sales increased by 5 per cent to £2,157 million with better growth in respiratory, oncology and vaccines and that in Europe declined by one per cent to £1,893 million. Similarly, its sales in Japan also declined by 3 per cent to £435 million. However, its sales in emerging markets improved by 3 per cent to £1,740 million.
Sir Andrew Witty, CEO, said, “This quarter has seen significant further progress in delivering against its strategy. We saw particularly encouraging progress in delivery of our late sage pipeline with approvals received in the US or Breo Ellipta for COPD and two new treatments for metastatic melanoma, Tafinlar and Mekinist. We now have receive approvals for three of the six key assets we recently filed with regulators.”
“Clearly, we are likely to see some impact to our performance in China as a result of the current investigation, but it is too early to quantify the extent o this. We are co-operating fully with Chinese authorities in this matter. Our Japan business, down 5 per cent, was impacted in the quarter by generic competition to Paxil. European pharmaceuticals and vaccines sales were flat, reflecting the annualisation of some government price cuts. We remain cautious about the outlook in Europe and expect austerity pressures to continue” he added.
For the first half ended June 2013, GSK's turnover declined marginally to £13,089 million from £13,102 million in the similar period half of last year. Its net profit declined by 21 per cent to £2,113 million from £2,676 million and its operating profit by 19 per cent to £3,018 million.