Upbeat Glaxo puts faith in drug pipeline
A BULLISH GlaxoSmithKline claimed yesterday that it will defy the trend of dwindling pipelines that is plaguing the pharmaceutical industry.
GSK announced that financial returns from its laboratories rose to around 12 per cent, up from 11 per cent two years ago and closing in on its target of 14 per cent.
Chief executive Andrew Witty cited a string of drugs in the final stages of development, boasting of “increasing signs that we can replenish our pipeline on an ongoing basis”.
Britain’s largest drug maker said that up to 30 programmes will progress into late-stage clinical development in the coming three years, including treatments for hepatitis C, melanoma, and another flu vaccine.
GSK reported profit after tax for 2011 of £5.26bn, up from £1.63bn the previous year.
However, the results narrowly missed investor forecasts and shares ended down 0.95 per cent at 1,406p.
Figures before major restructuring showed earnings per share of 28.4p in the final three months of the year, up from a loss of 7.5p per share at the same point in 2010.
Analysts, on average, had forecast sales of £7.33bn and earnings per share of 29p, according to research by Thomson Reuters. Turnover in quarter four was down three per cent on a year earlier, at £6.98bn.
GSK also said it lost £315m from price cuts imposed by governments in Europe and the US.