GlaxoSmithKline sees 2nd-qtr net leap 14% on strong, 11%, sales growth

UK-headquartered GlaxoSmithKline has reported a solid set of second-quarter 2006 results, with turnover rising 9% at constant exchange rates (up11% in actual figures) to L5.81 billion ($10.75 billion), operating profit increasing 13% to L1.91 billion and with pretax and earnings per share both 15% higher at L1.90 billion and 23.20 pence, respectively.

However, the figures were slightly below consensus forecasts, as was the firm's EPS guidance of 12% growth at CER, up from the previous projection of 10%, for the full year, resulting in the share price of GSK, the world's second largest drugmaker by sales, falling 2% to L15.00 on the day of the announcement, July 26.

Global pharmaceutical turnover was up 10% to L5.0 billion, driven by a strong performance in the USA, where sales rose 18% to L2.6 billion. As expected, GSK noted, revenues in Europe were impacted by generic competition for several of its key products, including Lamictal (lamotrigine), Imigran (sumatriptan) and Zofran (ondansetron). However, continued strong growth from Seratide (fluticasone), Avandia (rosiglitazone maleate) and vaccines offset this impact, with overall sales in Europe level at L1.4 billion for the quarter.