Financial Report: GlaxoSmithKline 4Q

GlaxoSmithKline 4Q

4Q Revenues: $11.0 billion (-9%)

4Q Earnings: $1.5 billion (-32%)

FY Revenues: $45.1 billion (-1%)

FY Earnings: $8.7 billion (-18%)

Comments: Pharmaceutical sales in the quarter were $9.3 billion (-9%) and $37.7 billion for the year (-2%). Advair sales were $2.8 billion in the quarter (+47%) and $10.8 billion for the year (+54%). Flovent sales were $337 million in the quarter (-5%) and flat at $1.3 billion for the year. Paxil sales were $249 million in the quarter (-19%) and $951 million for the year (-14%). Avandia product sales were $366 million in the quarter (+12%) and $1.5 billion for the year (-17%), due to safety concerns. Lamictal sales were $252 million in the quarter (-59%) and $1.7 billion (-23%). R&D expenses were $2.0 billion in the quarter (-5%) $6.8 billion for the year  (+1%). Restructuring charges for the year included $1.6 billion — compared to $495.3 million FY07 — related to the current operational excellence program and restructuring following the Reliant Pharmaceuticals acquisition. The company’s latest restructuring plan includes a sales force reduction in an effort to focus on growth areas such as vaccines and oncology. Layoff numbers were not announced.