GlaxoSmithKline Q1 earnings up 14% on new product sales
GlaxoSmithKline (LSE: GSK) reported a 14% rise in first-quarter earnings driven by demand for new drugs.
The UK drug firm reported core earnings per share of rose to 19.8 pence versus 17.3 pence a year ago.
Sales for three months to March were up 11% at 6.23 billion pounds against 5.62 billion pounds a year earlier.
Revenue from GSK’s blockbuster respiratory drug Advair, plunged 19% to 753 million pounds, the company said in a statement.
The drugmaker said it sees 2016 earnings per share to grow 10% to 12% on a constant currency basis. The company confirmed the dividend would remain steady through 2017.
Chief Executive Sir Andrew Witty, said: “This strong first quarter performance demonstrates the momentum we have across the group driven by growth in sales of our new products, effective cost control and execution of our restructuring and integration plans. We also continue to see good progression of novel assets in our core R&D therapy areas.”
Shares of Glaxo rose nearly 2.5% in London.
Sales for GSK’s Triumeq stood at 328 million pounds, while those Tivicay rose 60% to 188 million pounds. Revenue from respiratory drug Breo was at 111 million pounds while those for Anoro were at 33 million pounds. Revenue from Avodart dropped 26% to 132 million pounds.
The company said new product sales worth 821 million pounds were driven by HIV (Tivicay, Triumeq), Respiratory (Relvar/Breo, Anoro, Incruse, Nucala) and Meningitis vaccines (Menveo, Bexsero). New product sales now represent 20% of total pharmaceutical sales, the company said.
Vaccines sales grew 23% on a reported basis to 882 million pound.
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