Glaxo Wellcome Still Plagued By Strong Sterling

UK drugs major Glaxo Wellcome has announced a 10-month results updatefor the period to October 31, 1997, which shows sales of L6.7 billion ($11.3 million), an increase of 7% over the same period last year in constant exchange rate terms. In sterling terms, however, turnover decreased 3%.

Growth rates for the year have been further affected by the continual decline in sales of its lead drug Zantac (ranitidine), down 17%. The fall in turnover has been accelerated following the onset of generic competition in the USA in August (Marketletters passim).

However, excluding Zantac, GW has continued to perform strongly in the USA. A 21% rise in CER terms was driven by the company's respiratory, antiviral and central nervous system products. In the 10 months, total sales rose 14%, with continuing strong growth from new products (introduced since 1990), revenues of which climbed 50%.