GlaxoSmithKline, Plc, the UK-based world second largest pharma entity, suffered setback during the year ended December 2004 on account of stiff competition from generics to its Paxil and Wellbutrin brands, lower sales of pharmaceutical products and weak US dollar.

The company's net profit after taxation declined by 3.9 per cent to British £ 4,302 million from £ 4,478 million in the previous year. The turnover of pharmaceutical and consumer healthcare products declined by 5.1 per cent to £ 20,359 million from £ 21,441 million. The pharmaceutical sales came down to £ 17,146 million from £ 18,181 million in 2003, registering a shortfall of 5.7 per cent. The research and development expenditure touched £2,839 million during 2004 from £ 2,791 million in the previous year. R&D expenditure as per cent of turnover worked out to 13.9 per cent.

The Board of the company has declared a fourth interim dividend of 12 pence per share making a total for the year of 42 pence per share as against 41 pence per share in the previous year.

Sales of GSK's biggest selling product, Seretide/Advair for asthma and COPD, increased by 19 per cent to £ 2.5 billion. Seretide/Advair is the 6th largest pharmaceutical product globally and the 2nd largest in Europe. In the US, Advair sales grew by 20 per cent to £ 1.3 billion and that of Europe was 18 per cent. Its diabetes treatments Avandia/Avandamet performed well with overall sales of £ 1.1 billion, up by 32 per cent. The sales of epilepsy and bi-polar disorder treatment Lamictal went up by 32 per cent to £ 678 million. Global HIV products sales rose by 4 per cent to £ 1.5 billion.

The company is one of the largest and most promising pipelines in the industry with 148 projects in clinical development - 90 NCEs, 37 PLEs, and 21 vaccines. The number of NCEs in the pipeline has increased by 80 per cent since the merger and 45 NCEs are no in phase II trials and data on at least 15 of these are expected during 2005.

The company's operating profit declined by 5.5 per cent to £ 6,150 million during 2004 from £ 6,509 million in the previous year on account of higher R&D expenditure, higher cost of goods due o a less favourable product mix, and higher provisions for legal matters. The higher provisions for legal maters included a charge in S,G&A of £ 141 million in fourth quarter of 2004.