GSK's 2008 sales grow 7%, but EPS falls on restructuring; confirms more jobs to go

UK headquartered GlaxoSmithKline has reported strong revenue figures for full-year 2008, helped by its push into emerging markets and vaccines,  but restructuring and legal charges took their toll on earnings. Sales  for the year reached GBP24.35 billion ($31.21 billion), up 7% as reported,  but down 3% at constant exchange rates. Earnings per  share before  restructuring were 104.7 pence, a rise of 6% (+9% at CER), but after the  charges of GBP1.12 billion, EPS fell to 88.6 pence, down 6% (-21% at CER).

The company, the world's second-largest drugmaker, said net profit was  GBP5.55 billion before restructuring, down 14% at CER, though after the  charges the figure is GBP4.71 billion, versus GBP5.57 billion. On the same  basis, pretax earnings were GBP6.66 billion vs GBP7.79 billion.

GSK's chief executive, Andrew Witty, said 2008 was a turning point for  the firm, but it was a challenging year, due to the adverse impact of  significant US patent expiries and a decline in the sales of Avandia  (rosiglitazone), its type 2 diabetes drug that has been linked to  increased risk of heart attacks (Marketletters passim). The company  also took a fourth-quarter legal charge amounting to $400.0 million  relating to its  marketing and promotonal practices in the USA on  several products (Marketletter February 9).