GSK’s Q2 results overshadowed by China bribery scandal

GlaxoSmithKline has reported a second-quarter core EPS growth of 4% on sales earnings of 2%. However, the net profit was down by nearly 16%, at $1.6 billion, compared to a year earlier.

Sales in the company's pharmaceuticals and vaccines segment rose by 1%, largely due to strong growth in respiratory, oncology and vaccines, while sales in the consumer healthcare segment rose by 2%.

GSK experienced a positive R&D pipeline delivery in the first half of 2013, with three major product approvals in the US. These included Breo Ellipta for COPD and Tafinlar and Mekinist monotherapies for metastatic melanoma. The company also received positive CHMP opinions for Tafinlar (dabrafenib) and advanced breast cancer drug Tyverb (lapatinib) in combination with Herceptin (dual blockade).

"Five years ago, we set out a strategy to fundamentally re-shape GSK to deliver sustainable sales growth, increase financial returns to shareholders and improve productivity in R&D.

"This quarter has seen significant further progress in delivering against this strategy. We saw particularly encouraging progress in delivery of our late stage pipeline with approvals received in the United States for Breo Ellipta for COPD and two new treatments for metastatic melanoma, Tafinlar and Mekinist. We now have received approvals for three of the six key assets we recently filed with regulators. With Phase III data expected on 13 assets during 2013/2014, I remain confident of R&D's productivity and our ability to deliver valuable new product flow on a sustainable basis."

Sir Andrew Witty, Chief Executive Officer, GSK.

However, these half-year financial results have been shadowed by the news of the global pharma company's bribery scandal that has been unfolding in China this week. GSK has said it is too early to tell how this will impact business in the future. To find out more about this, don't miss the "recent news highlights" by Pharmalot's Ed Silverman.