Glaxo profits up – but cuts looming

DRUGS giant GlaxoSmithKline has reported a 12 per cent rise in annual profit – but warned that cost-cutting measures would be imposed.

Pre-tax profits for 2009 were £8.73bn ($13.81bn) up from £7.78bn in 2008.

A £500m programme of cuts will be completed by 2012.

Glaxo said its profits had been enhanced by sales of flu drugs and vaccines to governments responding to the H1N1 pandemic.

Chief executive Andrew Witty said: "We currently expect roughly the same level of sales for the vaccine in 2010 as for 2009.

"We will announce restructuring outcomes once employees, relevant works councils and trade unions have been consulted."