GlaxoSmithKline 1st-qtr earnings fall on flat sales

UK pharma major GlaxoSmithKline (LSE: GSK) has reported sales of £6.62 billion ($8.53 billion) for the first quarter of 2015, a rise of 1% at constant exchange rates.

Core operating profit for the quarter was £1.305 billion, down 14% (-15% in sterling), with core earnings per share of 17.3 pence, down 16% (-18% in sterling). Operating profit leapt around 100% to £9.22 billion. These results came in slightly below analysts’ expectations, but GSK’s shares gained 1.6% to £15.245 by mid-afternoon trading.

The $20 billion Novartis asset swap transaction completed on March 2, 2015, and so GSK’s reported results include one month’s turnover of the former Novartis Vaccines and Consumer Healthcare products and exclude sales of the former GSK Oncology products from March 2. Chief executive Sir Andrew Witty said that the Novartis deal was bit more dilutive than expected due to vaccines hit, smaller cash return and fact deal closed later than hoped.