Strong £ hits GlaxoSmithKline 1st-qtr 2014, as sales fall 10%

UK pharma giant GlaxoSmithKline (LSE: GSK) posted a weak set of first-quarter 2014 financial results, with sales slumping 10% (-2% at constant exchange rates) to £5.61 billion ($9.43 billion), missing average forecasts of £5.84 billion of analysts polled by Thomson Reuters.

Core operating income was down 18% (unchanged at CER) with core earnings per share falling 20% (+2% CER) to 21.0 pence, just beating forecasts of 20.7 pence. Slowing sales of some leading products and the strength of sterling impacted the firm’s results. The company reiterated its target of increasing 2014 EPS by between 4% and 8%. GSK’s shares edged up 1.5% to £16.40 shortly after releasing the figures.

“This quarter has amply demonstrated the very significant changes that are underway in GSK’s portfolio. Our strategy to broaden the company’s sales base is evidenced with the transition we are making to new products in our core franchises of Respiratory and HIV, further R&D delivery and the 3-part transaction we announced last week with Novartis,” commented chief executive Sir Andrew Witty.