GlaxoSmithKline Plc. (GSK), has suffered setback during the third quarter ended September 2010 on account of lower growth of pharmaceutical sales in US, Europe and Asia Pacific/Japan. Its net profit declined by 2 per cent to £1,343 million from £1,371 million in the corresponding period of last year. Its sales improved marginally to £6,813 million from £6,758 million. Its pharmaceutical sales declined by 3 per cent to £5,553 million and consumer healthcare sales increased by 4 per cent £1,260 million.

Its sales in US declined by 8 per cent to £1,950 million and that in Europe by 9 per cent to £1,428 million. However sales in emerging markets improved by 14 per cent to £873 million. New product sales grew by 44 per cent to £448 million which includes products like Tykerb, Arzerra and Votrient.

Vaccines sales in US moved up by 32 per cent to £278 million. GSK's sales of Valtrex and Avandia products declined by 75 per cent and 65 per cent to £95 million and £70 million respectively during the quarter under review. Andrew Witty, CEO, said, “GSK's growth/risk profile is fundamentally changing. Our strategy to diversify our business is generating sustained sales growth from key investment areas such as vaccines, respiratory, dermatology, emerging markets/Japan and consumer healthcare.”

He added, “Out generic exposure in the USA is reducing and regulatory uncertainty around Avandia has diminished. This is not to say that significant issues do not remain. Clearly our operating environment is challenging and the measures being put in place by governments to reform healthcare and reduce deficits are impacting our performance along with others in our sector. We are on track to deliver £2.2 billion of annual restructuring savings by 2012.

For the first nine months ended September 2010, GSK's turnover increased by 4.5 per cent to £21,195 million from £20,274 million in the corresponding period of last year. Its pharmaceutical sales increased by 4 per cent to £17,452 million from £16,784 million and sales of consumer healthcare improved by 7.3 per cent to £3,743 million from £3,490 million. The pharmaceutical sales in US declined by 7.4 per cent to £5,794 million from £6,256 million,. however, sales in Europe improved by marginally by one per cent to £4,901 million from £4,856 million. Its net profit declined sharply by 37.9 per cent to £2,486 million from £4,001 million in the last period.