FierceBiotech FierceBiotech IT FiercePharma FierceMedicalDevices
FierceBiotech Research FierceVaccines FiercePharma Manufacturing FierceDrugDelivery

GSK's Witty doesn't anticipate dip in profit margins

Tools

GlaxoSmithKline doesn't expect profit margins to slip substantially despite an aggressive drive to diversify into areas such as consumer health and emerging markets, CEO Andrew Witty (photo) told attendees at the Reuters Health Summit Thursday.

"I don't really anticipate huge changes going forward," Witty told attendees, adding there is no guarantee that the company's margins will erode significantly over time, according to Reuters. Investors have questioned his emerging markets strategy because of its potential to dilute profitability by focusing on activities like selling branded generic drugs in developing countries.

But Witty said it was wrong to think emerging markets were inherently less profitable. He told the Financial Times in 2008 that believes that brand-building in emerging markets, whether to sell patented meds or generics or consumer health products, ends up benefiting the company across the board. Witty could prove prescient--the company's third quarter's sales were up 3 percent, with sales in emerging markets rising 25 percent. 

Since Witty's policy was implemented, GSK has inked deals with Bristol-Myers Squibb, UCB, Dr. Reddy's and South Africa's Aspen Pharmacare Holdings to expand its reach in emerging markets.

- read the Reuters article

Related Articles:
Glaxo grabs Bristol's Middle East unit
Glaxo, Dr. Reddy's team up in emerging markets
Glaxo goes deeper into Africa with $418M deal
Glaxo in talks for Aspen stake
GSK to buy Bristol's Pakistani group
GSK to buy Bristol-Myers Eqypt operations


SHARE
WITH:
Email Twitter Facebook LinkedIn StumbleUpon
Get Your FREE FiercePharma Email Newsletter:

More stories about GlaxoSmithKline   Dr. Reddy's Laboratories   Bristol-Myers Squibb   UCB Pharma   Aspen Pharmacare   emerging pharmaceutical markets