GlaxoSmithKline (NYSE: GSK) - Big Pharma's Q3 2010 Earnings Report

FiercePharma says: GSK's earnings dropped 3.5 percent to $2.03 billion, mostly due to Europe's ban on its diabetes drug Avandia. "GSK's growth/risk profileis fundamentally changing," said GSK CEO Andrew Witty in his analysis. "...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." GSK's vaccines and cancer drugs, however, are doing well, with 32 and 34 percent sales boosts respectively.

Highlights

  • 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
  • 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
  • Q3 tax rate 24.4% reflecting resolution of certain historical tax matters

See GSK's current stock quote from CNN Money

GSK's website: http://www.gsk.com/
Full release: GSK's earnings release

GlaxoSmithKline (NYSE: GSK) - Big Pharma's Q3 2010 Earnings Report
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