GlaxoSmithKline plc (GSK), the second largest pharmaceutical company in the world, has suffered minor setback during the first quarter ended March 2007 due to stiff competition from generic and weaker US dollar. The company's turnover declined by 3.8 per cent to British pound 5,592 million (US$ 10,961 million) from pound 5,813 million in the corresponding period of last year. The company managed maintained the net profit level at pound 1,533 million as against pound 1,530 million. The earning per share improved slightly to 27 pence from 26.5 pence in the last period. The company declared dividend of 12 pence for the first quarter.

Commenting on the performance for the quarter, JP Garnier, CEO, said, "This good start to 2007 is very encouraging and further evidence that GSK's broad portfolio, underpinned with effective cost control, will continue to deliver strong earnings performance at constant exchange rates. We have also successfully strengthened our business this quarter with over 10 products filed, approved or launched since the start of 2007. These new opportunities, together with those in our very promising late stage pipeline, will augment and energise further growth of GSK's business."

GSK's pharmaceutical sales declined by 4.7 per cent to pound 4,806 million in the first quarter ended March 2007 from pound 5,045 million in the similar period of last year. The US sales increased by 3 per cent to pound 2.4 billion and that of in Europe reached at pound 1.4 billion. Its main products like Seretide/Advair and Avandia recorded sales growth of 11 per cent and 19 per cent respectively. Sales of vaccines were pound 368 million, with growth of only 6 per cent due to comparison with an exceptionally high growth in first quarter of last year. The company is launching new OTC weight loss treatment products in the USA from June 2007.

The company is well set to launch five new products viz., Tykerb, coreg CR, Veramyst, Trexima and Cervarix in the year 2007. At the end of February 2997, the company had 158 pharmaceutical and vaccine projects in clinical development, comprising 94 NCEs, 41 PLEs and 23 vaccines. In addition, GSK has completed 6 regulatory filings and received approval or launched 6 new product opportunities so far in 2007. The company is holding an R&D seminar, to profile its expanding oncology portfolio, in London on June 18, 2007.

Its gross profit declined by 6.9 per cent to pound 4,358 million from pound 4,679 million. The selling, general and administration expenses lowered by 8.2 per cent to pound 1,673 million and its R&D expenditure declined by 3.6 per cent to pound 726 million.