GlaxoSmithKline PLC (GSK) - 3rd Quarter Results
RNS Number : 7760U
GlaxoSmithKline PLC
21 October 2010
Issued: Thursday, 21st October 2010, London, U.K.
Results announcement for the third quarter 2010
Q3 EPS before major restructuring of 28.2p*
Q3 dividend up 7% to 16p
Results before major restructuring*
Q3 2010 9 months 2010
£m CER% £% £m CER% £%
Turnover 6,813 (2) 1 21,195 4 5
Earnings per share 28.2p (6) (1) 61.5p (33) (28)
Total results
Q3 2010 9 months 2010
£m CER% £% £m CER% £%
Turnover 6,813 (2) 1 21,195 4 5
Restructuring charges 171 1,062
Earnings per share 25.3p (10) (4) 45.7p (46) (41)
The full results are presented under 'Income Statement' on pages 8 and 15.
* For explanations of the measures 'results before major restructuring' and
'CER growth', see page 7.
Summary
· Total sales of £6.8 billion (-2%); sales +2% excluding pandemic and Avandia
products
· Sales diversification continues: strong growth in key investment areas
partly offsets declines in US and European pharmaceuticals:
- USA (-8%) and Europe (-9%) reflecting lower Avandia and Valtrex sales
- Emerging Markets (+14%); Japan (+3%); Vaccines (+19%); Respiratory (+5%);
Dermatology (approximately +6% pro-forma); Consumer Healthcare (+4%)
- Sales from 'white pills/western markets': 23% (29% Q3 2009)
· 9 month sales £21.2 billion (+4%); sales +2% excluding pandemic and Avandia
products
· Increased new product contribution (excluding pandemic products): Q3 sales
+44% to £448 million; 9 month +36% to £1.25 billion
· Q3 Avandia charge of £147 million reflecting sales returns (£65 million) and
one-off charges (£82 million)
· Continued focus on ROI, cost management and cash generation:
- 2010 expectation on Cost of sales, SG&A and R&D unchanged
- 2010 Other operating income expectations lowered to around £500
million following assessment of asset disposal opportunities
- 2010 operating profit margin (excluding legal costs) expected to be
in the range of 32% to 32.5%
- 9 month net cash inflow from operating activities of £5.3 billion
· Q3 tax rate 24.4%* reflecting resolution of certain historical tax matters
- 2010 tax rate now expected to be around 29%*
GSK's strategic priorities
GSK has focused its business around the delivery of three strategic
priorities, which aim to increase growth, reduce risk and improve GSK's
long-term financial performance:
· Grow a diversified global business
· Deliver more products of value
· Simplify GSK's operating model
Chief Executive Officer's Review
GSK's growth/risk profile is fundamentally changing. Our strategy to
diversify our business is generating sustained sales growth from key
investment areas such as Vaccines, Respiratory, Dermatology, Emerging Markets,
Japan and Consumer Healthcare.
At the same time, our generic exposure in the USA is reducing and regulatory
uncertainty around Avandia has diminished.
This is not to say that significant issues do not remain. Clearly our
operating environment is challenging and the measures being put in place by
governments to reform healthcare and reduce deficits are impacting our
performance along with others in our sector.
Overall, we estimate Group turnover was reduced by approximately 2% in the
quarter as a result of US healthcare reform and European government
'austerity' measures.
Comparison to high pandemic product sales a year ago and continued sales
declines of Avandia and Valtrex impacted our overall sales growth for the
quarter. Excluding these three factors, Group sales growth was around 6% and
it is worth noting that these particular headwinds will diminish rapidly over
the next 12 months.
This underlying sales growth for GSK is a direct result of the strategy we
have been implementing to significantly shift investment and resources to
support expansion in key business areas and new products.
New product sales grew 44% in the quarter to £448 million. Year to date sales
were £1.25 billion and I am pleased that this includes more than £200 million
of sales from new oncology products, Tykerb, Arzerra and Votrient.
In Consumer Healthcare, our sales again grew faster than the markets in which
we compete (4% vs 3%). Q3 reported growth was impacted by a difficult
year-on-year comparison following alli's launch in Europe last year .
Momentum in most other OTC categories and in our Oral care and Nutritionals
units is positive. Nutritionals especially stands out this quarter with new
product innovation in emerging markets such as India helping drive sales
growth of 12%.
Disciplined allocation of capital and continued cost reduction remain key
priorities for GSK.
We are on track to deliver £2.2 billion of annual restructuring savings by
2012 and now expect to realise certain savings in R&D earlier than expected.
The R&D cost savings programme announced earlier this year, which included
termination of certain areas of discovery research and a significant reduction
in infrastructure, is ahead of plan with the majority of savings now expected
in 2011.
In addition to reducing cost, one of the key levers to improving returns on
investment in R&D is through improved productivity. We continue to develop a
deep and comprehensive pipeline of assets and are relentlessly focused on
deriving clinical differentiation and value for money. In the coming months I
expect to see further maturation of several late stage assets with increased
visibility of their profile.
For example in respiratory, we are seeing very good progress with positive
efficacy data for Relovair presented at the European Respiratory Society
conference in September. The phase III programme has now enrolled over 8,000
patients and many key studies have completed recruitment.
Cash generation remains strong but was impacted in the quarter by the payout
of previously settled legal charges of £876 million, a trend which we expect
to continue over the next 12 months as we discharge our liabilities.
Our free cash flow continues to be directed firstly towards delivering a
progressive dividend (Q3 dividend 16p up 7%) with further available free cash
flow and debt capacity used to invest in our strategic priorities and then
finally in other cash returns to shareholders. I believe this is the right
approach to deliver shareholder value and to maintain sufficient flexibility
which is critical given our sector dynamics and the current economic
environment.
We continue to apply strict financial criteria to our investment decisions and
following an assessment of potential asset disposal opportunities, we do not
foresee making any further significant disposals this year. As a result we
are lowering our expectations for other operating income this year to be
around £500 million. We have also adjusted our full year tax rate expectation
by 1.5% to around 29%, following progress made to resolve certain historical
tax matters.
Taking a full and balanced role in improving global healthcare continues to be
very important to GSK. Last week, we made a landmark commitment to
significantly expand donation of our medicine albendazole to treat children at
risk of intestinal worms in Africa. We are now working with World Health
Organization and other partners to put an implementation programme in place.
In conclusion, this third quarter marks another positive step forward in
execution of our strategy and, despite the challenging environment we face, I
remain confident that GSK's outlook continues to improve and that we are well
placed to deliver long-term growth and value for shareholders.
Andrew Witty
Chief Executive Officer
A short video interview with Andrew Witty discussing today's results and GSK's
strategic progress is available on www.gsk.com
Trading update
Turnover and key product movements impacting growth - Q3 2010
Total Group turnover for the quarter declined 2% to £6,813 million, with
pharmaceutical turnover down 3% to £5,553 million and Consumer Healthcare
sales up 4% to £1,260 million. Excluding pandemic products, Group sales were
level in the quarter. Excluding pandemic products and Avandia, Group sales
were up 2% in the quarter.
Within pharmaceuticals, sales declines in the USA (-8% to £1,950 million),
Europe (-9% to £1,428 million) and Asia Pacific/Japan (-2% to £693 million)
were partly offset by sales growth in Emerging Markets (+14% to £873 million).
In the USA strong sales growth in the quarter for Vaccines (+32% to £278
million), Lovaza (+20% to £137 million) and Oncology (+34% to £89 million)
were more than offset by lower sales of Valtrex due to generic competition,
lower sales of Avandia, and the discontinuation of GSK's promotion of Boniva.
Sales growth in Europe was negatively impacted by delays in government vaccine
tenders and shipments, government mandated price reductions, declines in
Valtrex and Avandia and a negative year-on-year comparison for pandemic
product sales.
In Emerging Markets, strong sales growth was delivered across the portfolio
including Vaccines (+29% to £216 million), Dermatologicals (+35% to £73
million), CNS medicines (+22% to £63 million) and Respiratory medicines (+11%
to £145 million). The region also benefitted from the June 2010 acquisition
of Laboratorios Phoenix S.A.C.yF, a leading Argentinean pharmaceutical
business, which contributed sales of £20 million in the third quarter.
Sales of Seretide/Advair grew 5% to £1,243 million in the quarter. Reported
US sales were up 6% to £649 million. Underlying US growth for the quarter is
estimated to be approximately 1%, with the difference from reported growth
primarily due to wholesaler stocking patterns. Total Advair growth was helped
by strong performances in Japan (+16% to £57 million) and Emerging Markets
(+11% to £77 million). European sales of £370 million were level with last
year. Several other respiratory products delivered strong growth including
Avamys/Veramyst (+23% to £40 million), Ventolin (+15% to £130 million) and
Flovent (+7% to £187 million).
Total vaccine sales were £982 million (+19%) including £58 million of pandemic
H1N1 vaccine sales (Q3 2009: £11 million). Strong growth in the USA (+32% to
£278 million), Emerging Markets (+29% to £216 million) and Asia Pacific/Japan
(>100% to £128 million) more than offset a reduction in Europe (-8% to £310
million). Several new vaccines contributed growth including Synflorix (more
than doubling to £90 million with a significant contribution of £68 million
related to the 10 year Brazil supply agreement), Cervarix (+64% to £48
million, including £19 million in Japan) and Boostrix (+49% to £59 million).
Sales of the Hepatitis vaccines grew 9% to £189 million and seasonal flu sales
grew 14% to £167 million. Rotarix sales were down 40% to £52 million. The
product is beginning to recover market share lost following its temporary
suspension from several markets earlier in the year.
Relenza sales were £18 million, down 91% compared with Q3 2009 which benefited
from significant government orders.
Dermatology sales were £272 million in the quarter, including heritage GSK
products and those acquired through the acquisition of Stiefel in July 2009
(approximately 6% growth on a pro-forma basis). In addition, GSK's heritage
consumer dermatology portfolio, reported within Consumer Healthcare,
contributed sales of £67 million (+7%).
Other strong pharmaceutical performances in the quarter included Tykerb (+26%
to £58 million), Lovaza (+20% to £138 million), Arixtra (+17% to £72 million),
and Avodart (+16% to £156 million). Newly launched oncology products Votrient
and Arzerra delivered sales in the quarter of £11 million and £9 million,
respectively.
Valtrex sales (-75% to £95 million) continued to be impacted by generic
competition in the USA and Europe. Boniva's reported sales of £17 million
were down 70%, primarily reflecting the transfer to Genentech of the exclusive
promotion rights in the USA on 1st January 2010.
Avandia sales declined by 65% to £70 million. On 23rd September 2010 the
European Medicines Agency suspended marketing authorisation for all Avandia
containing products and the US Food and Drug Administration announced
additional measures to ensure continued safe use of Avandia, including a Risk
and Evaluation and Mitigation Strategy (REMS) programme. As a result, Q3 2010
sales are negatively impacted by a provision related to anticipated sales
returns of £65 million and GSK expects global sales of Avandia containing
products to be in the range of approximately £100 million to £150 million in
the second half of 2010 and to be minimal thereafter.
Sales of HIV products by ViiV Healthcare were down 1% to £401 million. Sales
of the former Pfizer products Selzentry and Viracept (combined sales of £30
million in the quarter) and growth from Epzicom/Kivexa (+3% to £138 million)
partly offset reductions in the sales from other HIV products including
Trizivir (-21% to £38 million) and Combivir (-10% to £96 million).
Total Consumer Healthcare sales were up 4% to £1,260 million. Excluding alli
sales in Europe where comparison was impacted by launch activity in 2009, the
business continued to perform strongly (+5%), outperforming market growth
estimated at approximately 3%.
On a regional basis, sales in the Rest of World markets continued to perform
strongly (+15% to £520 million) with growth across all major categories. In
Europe, sales were down 2% to £491 million, mainly due to lower sales of alli.
Excluding the impact of the alli comparison, underlying sales in Europe were
up 1%. US sales for the business were down 4% to £249 million, primarily due
to macroeconomic pressures on higher priced, non-essential OTC and Oral
healthcare products.
On a category basis, global Oral healthcare sales grew 4% to £400 million led
by growth of Sensodyne. Nutritional healthcare sales grew 12% to £259
million, with growth of 22% to £130 million in the Rest of World markets
driven by innovation, geographic expansion and enhanced marketing behind the
Horlicks brand. Sales of OTC medicines were £601 million, up 1%, reflecting
lower sales of alli in both the USA and Europe. Excluding alli, OTC medicines
grew 5%, led by strong growth in Rest of World markets.
Operating profit and earnings per share commentary - Q3 2010
Results before major restructuring
Operating profit before major restructuring for Q3 2010 was £2,129 million, a
9% decline in CER terms, principally reflecting charges booked in Q3 2010
related to Avandia.
Cost of sales was 27.5% of turnover, higher than Q3 2009 at 25.6%, and
included inventory and asset impairments and other costs of £77 million
related to Avandia. Excluding these charges, cost of sales was 26.4% of
turnover. The remaining increase in margin arose from the impact of generic
competition to higher margin products in the USA, principally Valtrex, and
changes in business and product mix.
SG&A costs as a percentage of turnover were 28.7%, lower than last year (Q3
2009: 30.5%). Legal costs were £48 million in the quarter (Q3 2009: £63
million). Excluding legal costs, SG&A costs declined 9% and were 28.0% of
turnover (Q3 2009: 29.6%) with continued growth of investment in Emerging
Markets, more than offset by operational excellence savings in the USA and
Europe.
R&D expenditure was 13.9% of turnover, in line with expectations (Q3 2009:
12.8%). The prior year comparative benefited from a provision release due to
reassessment of a receivable balance.
Other operating income was £95 million in the quarter, compared with £123
million in the third quarter last year. Royalty income was £76 million (Q3
2009: £103 million) with the prior year quarter benefiting from settlement of
a royalty dispute.
The charge for taxation on profit before major restructuring amounted to £480
million and represented an effective tax rate of 24.4% (Q3 2009: 28.3%) which
reflected the settlement of certain historical matters.
EPS before major restructuring of 28.2p decreased 6% in CER terms (a 1%
decrease in sterling terms). The favourable currency impact was primarily due
to the weakness of Sterling against most currencies other than the Euro.
Total results after restructuring
Operating profit after restructuring for Q3 2010 was £1,958 million, down 10%
CER and 5% in sterling terms. This included £171 million of charges related
to restructuring (Q3 2009: £152 million): £31 million was charged to cost of
sales (Q3 2009: £50 million); £84 million to SG&A (Q3 2009: £82 million) and
£56 million to R&D (Q3 2009: £20 million). The restructuring charges
primarily arose from several site exits.
Earnings per share after restructuring was 25.3p compared with 26.3p in Q3
2009.
Cash flow and net debt
Net cash inflow from operating activities for the nine months was £5,332
million, a 4% decrease in sterling terms over the previous year reflecting
higher settlement of legal claims in the current period. This net inflow was
used to fund net interest of £341 million, capital expenditure on property,
plant and equipment and intangible assets of £1,189 million, acquisitions of
£167 million, repayment of short-term loans of £1,300 million and the
dividends paid to shareholders of £2,446 million.
Net debt decreased by £652 million during the nine months to £8.8 billion at
30th September 2010, comprising gross debt of £15.2 billion and cash and
liquid investments of £6.4 billion.
At 30th September 2010, GSK had short-term borrowings (including overdrafts)
repayable within 12 months of £386 million with loans of £651 million
repayable in the subsequent 12 months.
Dividends
The Board has declared a third interim dividend of 16 pence per share (Q3
2009: 15 pence). The equivalent interim dividend receivable by ADR holders is
50.7360 cents per ADS based on an exchange rate of £1/$1.5855. The
ex-dividend date will be 27th October 2010, with a record date of 29th October
2010 and a payment date of 6th January 2011.
Currency impact
The Q3 results are based on average exchange rates, principally £1/$1.56,
£1/€1.18 and £1/Yen 134. Comparative exchange rates are given on page 28.
The period end exchange rates were £1/$1.58, £1/€1.15 and £1/Yen 132. If
exchange rates were to hold at these period end levels for the rest of 2010
and there were no exchange gains or losses in the fourth quarter, the
estimated positive impact on 2010 sterling EPS growth before major
restructuring would be approximately 5 percentage points.
Additional income statement information
To improve transparency and understanding of our increasingly diversified
business additional detailed financial information is provided on pages 29 to
32.
GlaxoSmithKline (GSK) together with its subsidiary undertakings, the 'Group' -
one of the world's leading research-based pharmaceutical and healthcare
companies - is committed to improving the quality of human life by enabling
people to do more, feel better and live longer. GlaxoSmithKline's website
www.gsk.com gives additional information on the Group. Information made
available on the website does not constitute part of this document.
Enquiries: UK Media David Mawdsley (020) 8047 5502
Claire Brough (020) 8047 5502
Alexandra Harrison (020) 8047 5502
Stephen Rea (020) 8047 5502
Jo Revill (020) 8047 5502
USA Media Nancy Pekarek (919) 483 2839
Mary Anne Rhyne (919) 483 2839
Kevin Colgan (919) 483 2839
Sarah Alspach (919) 483 2839
European Analyst / Investor Sally Ferguson (020) 8047 5543
Gary Davies (020) 8047 5503
US Analyst / Investor Tom Curry (215) 751 5419
Jen Hill Baxter (215) 751 7002
Results before major restructuring
Results before major restructuring is a measure used by management to assess
the Group's financial performance and is presented after excluding
restructuring charges relating to the Operational Excellence programme, which
commenced in October 2007 and the acquisitions of Reliant Pharmaceuticals in
December 2007 and Stiefel in July 2009. Management believes that this
presentation assists shareholders in gaining a clearer understanding of the
Group's financial performance and in making projections of future financial
performance, as results that include such costs, by virtue of their size and
nature, have limited comparative value.
CER growth
In order to illustrate underlying performance, it is the Group's practice to
discuss its results in terms of constant exchange rate (CER) growth. This
represents growth calculated as if the exchange rates used to determine the
results of overseas companies in Sterling had remained unchanged from those
used in the comparative period. All commentaries are presented in terms of
CER growth, unless otherwise stated.
Brand names and partner acknowledgements
Brand names appearing in italics throughout this document are trademarks of
GSK or associated companies or used under licence by the Group.
White pills/western markets
White pills/western markets refers to sales of tablets and simple injectables
(excluding biopharmaceuticals and vaccines) in North America and Europe.
Cautionary statement regarding forward-looking statements
Under the safe harbor provisions of the US Private Securities Litigation
Reform Act of 1995, the company cautions investors that any forward-looking
statements or projections made by the company, including those made in this
Announcement, are subject to risks and uncertainties that may cause actual
results to differ materially from those projected. Factors that may affect
the Group's operations are described under 'Risk Factors' in the 'Business
Review' in the company's Annual Report on Form 20-F for 2009.
GlaxoSmithKline plc, 980 Great West Road, Brentford, Middlesex TW8 9GS, United
Kingdom
Registered in England and Wales. Registered number: 3888792
Income statement
Three months ended 30th September 2010
Results Results
before major Major before major Major
restructuring restructuring Total restructuring restructuring Total
Q3 2010 Growth Q3 2010 Q3 2010 Q3 2009 Q3 2009 Q3 2009
£m CER% £m £m £m £m £m
______ ______ ______ ______ ______ ______ ______
TURNOVER 6,813 (2) 6,813 6,758 6,758
Cost of sales (1,875) 9 (31) (1,906) (1,732) (50) (1,782)
______ ______ ______ ______ ______ ______
Gross profit 4,938 (6) (31) 4,907 5,026 (50) 4,976
Selling, general
and
administration (1,956) (9) (84) (2,040) (2,064) (82) (2,146)
Research and
development (948) 8 (56) (1,004) (862) (20) (882)
Other operating
income 95 95 123 123
______ ______ ______ ______ ______ ______
OPERATING PROFIT 2,129 (9) (171) 1,958 2,223 (152) 2,071
Finance income 22 22 19 19
Finance expense (196) (1) (197) (199) (199)
Share of after
tax profits of
associates
and joint
ventures 16 16 22 22
______ ______ ______ ______ ______ ______
PROFIT BEFORE
TAXATION 1,971 (10) (172) 1,799 2,065 (152) 1,913
Taxation (480) 24 (456) (585) 43 (542)
Tax rate % 24.4% 25.3% 28.3% 28.3%
______ ______ ______ ______ ______ ______
PROFIT AFTER
TAXATION FOR THE
PERIOD 1,491 (5) (148) 1,343 1,480 (109) 1,371
______ ______ ______ ______ ______ ______
Profit
attributable to
non-controlling
interests 55 55 36 36
Profit
attributable to
shareholders 1,436 (148) 1,288 1,444 (109) 1,335
______ ______ ______ ______ ______ ______
1,491 (148) 1,343 1,480 (109) 1,371
______ ______ ______ ______ ______ ______
EARNINGS PER
SHARE 28.2p (6) 25.3p 28.5p 26.3p
______ ______ ______ ______
Diluted earnings
per share 28.0p 25.1p 28.3p 26.1p
______ ______ ______ ______
Pharmaceuticals turnover
Three months ended 30th September 2010
Total USA Europe Emerging Markets Rest of World
------------------------------ ------------------------------ ------------------------------ ----------------------------- ---------------------------
£m CER% £m CER% £m CER% £m CER% £m CER%
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Respiratory 1,726 5 846 9 488 (3) 145 11 247 5
Avamys/Veramyst 40 23 15 (7) 10 11 8 >100 7 50
Flixonase/Flonase 32 11 8 >100 8 - 9 (11) 7 (14)
Flixotide/Flovent 187 7 105 19 33 (11) 10 - 39 (3)
Seretide/Advair 1,243 5 649 6 370 - 77 11 147 11
Serevent 48 (13) 16 (6) 24 (11) 1 - 7 (36)
Ventolin 130 15 50 37 32 (9) 27 18 21 11
Zyrtec 19 - - - - - 4 (33) 15 17
Anti-virals 218 (68) 57 (84) 24 (71) 56 (10) 81 (55)
Hepsera 32 7 - - - - 16 25 16 (6)
Relenza 18 (91) 13 (73) 2 (95) 1 (92) 2 (98)
Valtrex 95 (75) 27 (91) 14 (63) 7 - 47 8
Zeffix 55 (4) 3 (25) 7 (14) 32 7 13 (14)
Central nervous
system 436 1 124 3 131 (4) 63 22 118 (4)
Imigran/Imitrex 53 (4) 18 (11) 22 - 1 - 12 -
Lamictal 131 7 70 5 35 (8) 15 27 11 63
Requip 58 33 13 >100 32 - 1 - 12 (23)
Seroxat/Paxil 115 (11) 5 - 19 (14) 19 - 72 (14)
Treximet 13 (13) 13 (13) - - - - - -
Wellbutrin 18 13 4 (25) 10 25 3 33 1 -
Cardiovascular
and urogenital 650 15 409 17 144 4 34 21 63 28
Arixtra 72 17 43 28 22 (8) 3 50 4 100
Avodart 156 16 87 5 41 19 8 33 20 89
Coreg 44 8 43 8 - - - - 1 -
Fraxiparine 54 - - - 34 (17) 15 27 5 >100
Lovaza 138 20 137 20 - - - - 1 -
Vesicare 28 8 27 4 - - - - 1 -
Volibris 11 100 - - 10 100 1 - - -
Metabolic 125 (58) 32 (78) 37 (42) 12 (61) 44 (28)
Avandia products 70 (65) 33 (70) 20 (52) 2 (90) 15 (50)
Bonviva/Boniva 17 (70) - (100) 13 (41) 1 - 3 67
Anti-bacterials 333 (4) 14 (41) 121 (9) 151 7 47 -
Augmentin 153 (7) 1 (89) 55 (16) 74 6 23 24
Oncology and
emesis 172 13 89 34 49 (2) 17 6 17 (17)
Arzerra 9 - 8 - 1 - - - - -
Hycamtin 35 (15) 21 (17) 11 (21) 2 - 1 100
Promacta 7 >100 6 100 1 - - - - -
Tyverb/Tykerb 58 26 18 42 23 21 9 29 8 13
Votrient 11 - 9 - 1 - - - 1 -
Vaccines 982 19 278 32 310 (8) 216 29 178 81
Boostrix 59 49 41 67 12 9 2 - 4 -
Cervarix 48 64 4 - 11 (35) 8 17 25 >100
Fluarix, FluLaval 167 14 81 29 50 (13) 19 36 17 50
Flu Pandemic 58 >100 1 - 2 (50) 6 - 49 >100
Hepatitis 189 9 97 39 55 (14) 20 (9) 17 -
Infanrix,
Pediarix 168 1 38 23 96 (6) 16 7 18 (6)
Rotarix 52 (40) 17 (27) 8 (43) 20 (56) 7 40
Synflorix 90 >100 - - 9 (9) 74 >100 7 >100
Dermatologicals 272 20 93 22 59 15 73 35 47 2
Bactroban 33 (3) 14 (7) 7 - 8 14 4 (25)
Dermovate 18 - - - 5 - 7 - 6 -
Duac 33 39 20 27 5 50 3 50 5 100
Soriatane 19 58 19 58 - - - - - -
Zovirax 31 11 8 75 6 - 6 20 11 (9)
Other 238 14 8 14 65 (6) 106 30 59 14
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
5,152 (4) 1,950 (8) 1,428 (9) 873 14 901 (1)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
ViiV Healthcare
(HIV) 401 (1) 162 (8) 136 (10) 59 73 44 6
Combivir 96 (10) 36 (19) 26 (25) 24 69 10 (20)
Epivir 31 (15) 10 (25) 9 (25) 7 75 5 (33)
Epzicom/Kivexa 138 3 50 (8) 57 (2) 12 86 19 23
Lexiva 39 (12) 19 (25) 13 (13) 7 >100 - (33)
Selzentry 20 - 8 - 10 - - - 2 -
Trizivir 38 (21) 19 (22) 15 (16) 3 (75) 1 100
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
5,553 (3)
---------- ----------
Pharmaceutical turnover includes co-promotion income.
Consumer Healthcare turnover
Three months ended 30th September
2010
Total
--------------------
£m CER%
------ ------
Over-the-counter medicines 601 1
Oral healthcare 400 4
Nutritional healthcare 259 12
------ ------
1,260 4
------ ------
Total
--------------------
£m CER%
------ ------
USA 249 (4)
Europe 491 (2)
Rest of World 520 15
------ ------
1,260 4
------ ------
Statement of comprehensive income
Q3 2010 Q3 2009
£m £m
---- ----
Profit for the period 1,343 1,371
Exchange movements on overseas net assets and net investment
hedges 267 457
Reclassification of exchange on liquidation or disposal of
overseas subsidiaries (2) -
Fair value movements on available-for-sale investments 63 69
Deferred tax on fair value movements on available-for-sale
investments (7) (7)
Reclassification of fair value movements on available-for-sale
investments - 33
Deferred tax reversed on reclassification of
available-for-sale investments - 6
Actuarial gains on defined benefit plans 182 434
Deferred tax on actuarial movements in defined benefit plans (47) (102)
Fair value movements on cash flow hedges (3) -
Deferred tax on fair value movements on cash flow hedges 2 -
Reclassification of cash flow hedges to income statement (4) -
---- ----
Other comprehensive income for the period 451 890
---- ----
Total comprehensive income for the period 1,794 2,261
---- ----
Total comprehensive income for the period attributable to:
Shareholders 1,750 2,217
Non-controlling interests 44 44
---- ----
1,794 2,261
---- ----
GSK's late-stage pharmaceuticals and vaccines pipeline to be updated
The table below is provided as part of GSK's quarterly update to show events
and changes to the late stage pipeline during the quarter and up to the date
of announcement.
The following assets were listed as approved or terminated in the last
quarterly update and are no longer included in the table: Duodart/Jalyn,
Votrient RCC, Tykerb first line metastatic in HR positive patients, new
generation flu vaccine.
Biopharmaceuticals USA EU News update in the
quarter
CLL (first line & Ph III Ph III
relapsed)
Bendamustine
combination study in
NHL (FL) Ph III Ph III rituximab refractory
NHL commenced in
September 2010.
Negative top-line
interim results from
Arzerra a Phase II study in
(ofatumumab) NHL (DLBCL) Ph III Ph III heavily pretreated
patients were
announced in August
2010.
Development in
autoimmune conditions
RA/MS refocused on
subcutaneous delivery
(i.v. development
stopped).
FDA granted priority
Filed Filed review, with a PDUFA
Benlysta Systemic lupus date of 9th December
(belimumab) Jun 2010 Jun 2010 2010. AdCom meeting
scheduled for 16th
November 2010.
otelixizumab Type 1 diabetes Ph III Ph III
Syncria Type 2 diabetes Ph III Ph III
Filings taking place
Prolia (denosumab) Post menopausal n/a Launched in expansion
osteoporosis territory emerging
markets.
Cardiovascular & Metabolic USA EU News update in the
quarter
Avandamet XR Type 2 diabetes No longer being
developed.
Avandia + statin Type 2 diabetes No longer being
developed.
darapladib Atherosclerosis Ph III Ph III
Neurosciences USA EU News update in the
quarter
Horizant RLS Filed Ph III
almorexant Primary insomnia Ph III Ph III
Positive FDA Advisory
Potiga (ezogabine)/ Committee meeting on
Epilepsy Filed Filed 11th August 2010.
Trobalt (retigabine) PDUFA date delayed to
30th November 2010.
Oncology