GSK returns robust Q2 results

GlaxoSmithKline has reported its second quarter figures, which show that total pharmaceutical turnover grew 3% in the quarter to £4.6bn (Euro 6.5bn) and 6% in the first half of the year.

Given the loss of nearly £300m of Augmentin sales to generic competition in the USA during the first half of the year, JP Garnier, ceo, GSK, said: 'This quarter represents another solid per-formance by GSK and has helped us to grow earnings per share by 20% in the first half of the year.

'This was a great achievement for GSK especially given the loss of US Augmentin sales in the same period.'

The loss of Augmentin sales was partially offset by sales of Seretide, which exceeded £1bn (+39%), for the first half of the year, making it the group's largest and fastest growing product. In the United States, pharmaceutical sales grew 2% to £2.4bn (Euro 3.4bn) in the quarter.

In the first quarter of this year wholesaler stocking patterns helped US sales grow by 12%. In the second quarter there was some reversal of this, which resulted in lower reported US growth. Overall, US sales growth of 7% in the first half of the year is broadly consistent with the underlying performance of the US business. European sales were up 2% in the quarter to nearly £1.3bn. Key markets continued to be impacted by government reforms on healthcare spending.

However, GSK continued to achieve good growth in emerging markets in Central and Eastern Europe (+7%).

The report shows that GSK is on track to launch two key products into the US market in the second half of the year - Levitra, for erectile dysfunction, and Wellbutrin XL, for depression.

Garnier commented: 'On the back of this excellent performance we are upgrading our earnings guidance. We now expect earnings per share growth of high single digits or better in 2003, regardless of possible generic competition to Paxil in the USA'.