GlaxoSmithKline Upbeat on Latest Financial Results

UK-based drug major GlaxoSmithKline (GSK) has reported a 5.7% rise in net income for the fourth quarter. Over the full year 2004, pre-tax profit declined by 9% to GBP6.12bn (US$11.54bn), indicating a rise of 1% in currency adjusted terms. The results imply that the company weathered pressure from generic competition toward the end of last year, and observers have also largely welcomed encouraging details of the company's R&D pipeline.

Sales of GSK's leading products grew strongly during 2004, with sales of asthma therapy Seretide/Advair (fluticasone propionate/salmeterol) totalling GBP2.5bn (US$4.72bn), making the product the world's sixth best selling drug. In 2004, the company's 12 blockbuster drugs performed impressively, with sales on diabetes medicine Avandia, bipolar disorder treatment Lamictal and heart disease therapy Coreg all increasing by up to a third. However, sales of GSK's antidepressant Paxil (paroxetine), recently the subject of controversy in the UK, fell by 39%. Overall sales fell in the year by 5% to GBP20.35bn (US$38.39bn).

Meanwhile, the company claims to have 148 projects in clinical development, of which 90 are new chemical entities, 37 are product line extensions and 21 are vaccines. GSK is confident on the potential of new products launching this year, which include osteoporosis drug Boniva (ibandronate). Shrugging off recent safety concerns, GSK has also pledged to press ahead with developing a new Cox-2 inhibitor, and is shortly due to release data on 15 of its 45 new compounds currently in Phase II development.