GlaxoSmithKline has suffered a setback during the first quarter ended March 2013 on account of disposals of the Vesicare co-promotion agreement in the US and divested of non-core OTC brands in first half of 2012. Its net profit declined sharply by 25.1 per cent to £1,029 million from £1,373 million in the corresponding period of last year. Its revenues also declined by 2.6 per cent to £6,471 million from £6,640 million. The earnings per share worked out to 19.9 pence as against 26.4 pence in the last period.
The company's pharmaceutical sales declined marginally by one per cent to £4,444 million and that of vaccines declined sharply by 11 per cent to £680 million. Its consumer healthcare sales improved by one per cent to £1,347 million. Its sales in US declined by 5 per cent to £2,070 million and that in Europe declined by 4 per cent to £1,847 million. Similarly, its sales in Japan declined by 6 per cent to £510 million. However, its sales in emerging markets improved by 6 per cent to £1,661 million.
Respiratory sales in the quarter grew by 6 per cent to £1,936 million, with strong growth in all regions apart from Europe. Seretide/Advair sales were up by 4 per cent to £1,309 million, Flixotide/Flovent sales increased by 7 per cent to £213 million, and Xyzal sales grew by 64 per cent to £52 million. Ventoline sales grew by 4 per cent to £162 million.
Andrew Witty, CEO, said, “This quarter marks continued strategic delivery for GSK with sales and earnings in line with our expectations, significant pipeline progress and further growth in our returns to shareholders through a 6 per cent increase in the dividend. We are also announcing additional measures to improve the Group's focus and long term growth profile.”
“In the US, we see further signs of improved performance. Reported pharmaceuticals and vaccines sales declined by 6 per cent, but excluding Vesicare grew by 4 per cent. This was primarily driven by strong performances from our respiratory business and from new products including Promacta and Votrient.” he added.