GSK sees profits fall
Published: Wed, Apr. 23, 2008 08:57AM
Modified Wed, Apr. 23, 2008 09:00AM
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closeGlaxoSmithKline's profits dropped 13 percent in the first quarter as the British drug maker was battered by competition from generics and declining U.S. sales of the drug Avandia.
GSK, which has a U.S. headquarters and a manufacturing plant in the Triangle, reported $2.65 billion in profits for the three months ended March 31, compared with about $3 billion the same period a year ago.
Revenue for the quarter was up 1.6 percent compared with a year ago, mainly because of higher sales of GSK's asthma drug Advair, over-the-counter treatments and vaccines. The company reported $11.3 billion in sales, up from $10.9 billion a year ago.
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But sales of pharmaceuticals in the U.S., where GSK generates about half of its worldwide sales, decreased 10 percent to $4.25 billion.
"Our performance this quarter was in line with our expectations," said Jean-Pierre Garnier, GSK's chief executive, in a prepared statement.
GSK reported quarterly earnings before the market opened today. The drug maker's American depositary receipts, which are like stock, closed at $43.73 Tuesday.
sabine.vollmer@newsobserver.com or (919) 829-8992
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