GSK saw Q3 growth, despite bribery scandal in China

GlaxoSmithKline has announced that in the third quarter its core EPS growth was 16%. Its Pharmaceuticals and Vaccines businesses saw flat sales, while its Consumer Healthcare division saw a sales increase of 4%. Total Group turnover for the third quarter of 2013 was £6,510 million, up 1%, with growth across all geographic regions except EMAP.

"This quarter marks continued delivery for GSK of broadly-based sales growth, significant new product output from the pipeline and further growth in returns to shareholders.

"As far as full year 2013 is concerned, we continue to expect core EPS growth of 3-4% on sales growth of around 1% (both at CER).

"I am also pleased with the performance of our European Pharmaceuticals and Vaccines business, with sales up 5%. Some of this improvement reflects the annualisation of government price cuts and it is clear that the commercial environment in Europe remains challenging. Nevertheless, I believe we are now seeing benefits from the measures we have taken to restructure and focus this business around core assets such as Seretide and key growth opportunities such as vaccines and our oncology portfolio."

Sir Andrew Witty, Chief Executive Officer, GSK.

However, sales in China decreased by a whopping 61% following GSK's tarnished reputation after news of the company's bribery scandal in this country.

"Contributions from across the Group helped to deliver sales growth in Q3 despite a significant decline in sales from our Chinese business and lower vaccine shipments in emerging markets due to the phasing of tender orders.

"With our substantial new product flow and the changes we have made to our commercial model, we continue to be optimistic about future growth in this market."

Continued Sir Andrew Witty.

According to GSK, 2013 is a key year for its R&D delivery. In the third quarter, the company saw 4 of its 6 highlighted assets approved, as well as approval for its quadrivalent flu vaccine, FluLaval. GSK also took a massive step forward this quarter as it began development of the world's first vaccine to prevent malaria, with positive 18 month follow-up data generated for the candidate vaccine. This vaccine has the potential to make a significant contribution to public health in Africa and is intended to be filed for approval in 2014.

In 2013, GSK continues to expect core EPS growth of 3-4% CER on turnover growth of around 1% CER.