GlaxoSmithKline 3rd-qtr 2010 profits weighed down by Avandia ban, flu vaccines and charges

UK pharmaceutical giant GlaxoSmithKline (LSE: GSK) revealed yesterday that its third quarter 2010 profits were weighed down by the European ban of diabetes drug Avandia (rosiglitazone) and falling demand for flu vaccines, as well as charges; net profit fell 3.5% to £1.29 billion ($2.04 billion). GSK’s shares fell 1.6% to £12.72

European regulators called for Avandia to be withdrawn from the market last month due to cardiac risk concerns (The Pharma Letter September 24). GSK also disclosed that it has been subpoenaed by US authorities examining Avandia, which has also had further restrictions imposed in that market, although not withdrawn from sale. Total sales of the drug in the third quarter collapsed, falling 65% to just £70 million.

Operating profit before major restructuring was £2,129 million, a 9% decline in CER terms (a 1% decrease in sterling terms). EPS after restructuring was 25.3 pence compared with 26.3 pence in third-quarter 2009.