GlaxoSmithKline sales drop in second quarter
With the announcement of its second quarter financial results, global pharmaceutical company, GlaxoSmithKline, has warned it is unlikely to reach its sales targets in 2012, following pressures in European government funding and genericisation / product discontinuation in the US.
GSK saw sales drop by 2% to US $6.5 billion, mainly due to its European business, which saw an 8% decrease in sales. GSK’s shares dropped by 19p and the company’s overall revenue for the second quarter was £200m lower than City analysts had expected.
“Our performance this quarter reflects the challenging macro-economic environment in which we are operating and the continued transition of our product portfolio. Ultimately, the ability of companies in our sector to succeed in this environment and in the future will be determined by how successful they are in accessing growth markets and delivering valuable new product flow on a sustainable basis. On both these dimensions, GSK is making progress. In the last four years, we have created a more geographically balanced business with improving operational and financial efficiency.”
Sir Andrew Witty, CEO of GSK, comments on the latest financial results.
However, GSK will continue to look for business opportunities in the emerging markets and are confident in its ability to drive improvements in the core operating margin over the next few years. But for now, the company has realistically adjusted its core operating margin expectations to stay in line with 2011’s.
GlaxoSmithKline return to sales growth is held back by austerity-led price pressure (The Independent)
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