Financial Report: GSK

GSK

3Q Revenues: £5.6 billion (-10%)*
 
3Q Earnings: £385 (earnings were £1.0 billion in 3Q13)
 
YTD Revenues: £16.8 billion (-11%)
 
YTD Earnings: £1.8 billion (earnings were £3.1 billion YTD13)
 
Comments: Pharmaceutical sales were £3.7 billion (-4%) and vaccine sales were flat at £922 million, with U.S. sales down 10% to £1.3 billion, impacted by continued price and contracting pressures affecting respiratory sales (-17%). Established product sales were down 14% to £724 million in the quarter, reflecting generic competition to Lovaza in the U.S., down 58%, and continuing generic competition to a number of products across the portfolio, including Seroxat/Paxil, down 11% and Valtrex, down 29%. Following the divestment of its oncology portfolio and the impact of the U.S. respiratory market, a new restructuring program will rescale commercial operations, global support functions and relevant R&D/manufacturing across pharmaceuticals and is expected to deliver £1 billion of new annual cost savings over the next 3 years, which will also impact headcount.

     *All results reported at constant exchange rate (CER).