GlaxoSmithKline PLC (GSK) - 3rd Quarter Results

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

 

Suggested Articles

Could Monday's cancer buyout be a hint about what Sanofi CEO Paul Hudson will unveil at Tuesday's investor confab? Analysts think so.

Three Samsung execs face up to two years in jail for their roles in destroying data and documents at under-fire affiliate Samsung BioLogics.

The FDA has slapped a U.S. drug repackager, saying in a warning letter that its storage processes and equipment cleaning are not up to expectations.