Posted on Thu, Oct. 29, 2009
GlaxoSmithKline P.L.C. said third-quarter profit rose 30 percent after currency gains and orders for the Relenza flu drug boosted revenue. Vaccine sales declined because of a "phasing" of shipments, including swine flu shots.
Net income for the three months ended Sept. 30 increased to 1.34 billion pounds ($2.18 billion) from 1.03 billion pounds a year earlier, London-based Glaxo, which has major operations in Philadelphia, said in a statement yesterday. Earnings excluding some items rose to 28.5 pence a share from 25.2 pence, beating the 28.1-pence mean estimate from 18 analysts surveyed by Bloomberg.
The pound weakened against the dollar, increasing the value of Glaxo's U.S. sales. Revenue advanced 15 percent to 6.76 billion pounds, beating the 6.75 billion pound mean estimate of 19 analysts. Sales of Relenza more than doubled to 182 million pounds as governments expanded their stockpiles of flu-fighting treatments amid a pandemic that has killed more than 5,000 worldwide since April. Vaccine revenue fell 2 percent.
"After 11 straight quarters of declining sales growth, it's good to see sales growth is positive," Michael Leacock, a Royal Bank of Scotland analyst, said in an interview. "I'm a bit cautious, though, because of the one-off nature of swine flu products, and I recognize 2010 will be challenging because of the loss of Valtrex," an antiviral medicine that faces generic threats as soon as the fourth quarter, he said.
Glaxo's American depositary receipts were down 25 cents at $40.62 yesterday on the New York Stock Exchange.
Chief executive officer Andrew Witty has made at least a dozen licensing deals or acquisitions since taking over in May 2008 to make up for revenue lost to generic versions of drugs, including Lamictal (epilepsy) and Imitrex (migraines).
The company has slashed about 10,000 jobs since October 2007.
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