GlaxoSmithKline eyes further acquisitions

GlaxoSmithKline, the UK’s biggest drugs group, is set to embark on a programme of acquisitions as increased competition from generic rivals, and falling sales of its established treatments, has put pressure on the group’s traditional markets.

The chief executive Andrew Witty, who was appointed in May and has since announced a change of tack that will see GSK attempt to expand its consumer healthcare and emerging markets operations, added that the group had undergone a “tough transition period” in the last year.









Despite the cautionary tone of Mr Witty’s comments, the market reacted positively to the group’s third quarter results published today. While net profits dropped 21.6 per cent to £1.03bn, GSK’s shares closed the day up 1.3 per cent at 1143p. The group showed a 7 per cent increase in sales to £5.88bn and a 6 per cent hike in earnings-per-share to 25.2p. The divided was increased from 1p to 14p, which analysts at Charles Stanley said would be warmly received by the market.

GSK has already been active in the buyout market, having announced earlier this week that it has paid $170m for Biotene, a dry mouth mouthwash, from privately owned Laclede. The deal comes less than a week after the Brentford-based group spent $210m on Bristol Myers Squibb’s mature pharmaceutical products in Egypt, giving it licence options across the Middle East.

The move into areas such as Egypt comes as GSK faces increased competition from generics firms, which are increasingly challenging the research led groups’ patents, particularly in the United States. GSK’s biggest selling product, diabetes treatment Avandia continued to suffer a fall in sales. The drug has suffered a 40 per cent slide in sales since May last year, when the New England Medical Journal published a report linking Avandia to greater risk of heart attacks.

Start your day with The Independent, sign up for daily news emails
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...

Guru Careers: C# Project Team Lead

£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...

Guru Careers: Graduate Editor / Editorial Assistant

£16 - 20k: Guru Careers: A Graduate Editor / Editorial Assistant is needed to ...

Guru Careers: Software Developer / C# Developer

£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

Day In a Page

Raif Badawi: Wife pleads for fresh EU help as Saudi blogger's health worsens

Please save my husband

As the health of blogger Raif Badawi worsens in prison, his wife urges EU governments to put pressure on the Saudi Arabian royal family to allow her husband to join his family in Canada
Birthplace of Arab Spring in turmoil as angry Tunisians stage massive sit-in over lack of development

They shall not be moved: jobless protesters bring Tunisia to a halt

A former North African boom town is wasting away while its unemployed citizens stick steadfastly to their sit-in
David Hasselhoff's new show 'Hoff the Record': What's it like working with a superstar?

Hanging with the Hoff

Working with David Hasselhoff on his new TV series was an education for Ella Smith
Can Dubai's Design District 'hipster village' attract the right type of goatee-wearing individualist?

Hipsters of Arabia

Can Dubai’s ‘creative village’ attract the right type of goatee-wearing individualist?
The cult of Roger Federer: What is it that inspires such obsessive devotion?

The cult of Roger Federer

What is it that inspires such obsessive devotion?
Kuala Lumpur's street food: Not a 'scene', more a way of life

Malaysian munchies

With new flights, the amazing street food of Kuala Lumpur just got more accessible
10 best festival beauty

Mud guards: 10 best festival beauty

Whether you're off to the Isle of Wight, Glastonbury or a local music event, we've found the products to help you
Unai Emery’s passion for winning and eye for a bargain keep Seville centre stage in Europe

A Different League

Unai Emery’s passion for winning and eye for a bargain keep Seville centre stage in Europe, says Pete Jenson
Amir Khan and James DeGale’s remarkable Olympic performances were just the start of an extraordinary journey - Steve Bunce

Steve Bunce on Boxing

Amir Khan and James DeGale’s remarkable Olympic performances were just the start of an extraordinary journey
Abuse - and the hell that came afterwards

Abuse - and the hell that follows

James Rhodes on the extraordinary legal battle to publish his memoir
Why we need a 'tranquility map' of England, according to campaigners

It's oh so quiet!

The case for a 'tranquility map' of England
'Timeless fashion': It may be a paradox, but the industry loves it

'Timeless fashion'

It may be a paradox, but the industry loves it
If the West needs a bridge to the 'moderates' inside Isis, maybe we could have done with Osama bin Laden staying alive after all

Could have done with Osama bin Laden staying alive?

Robert Fisk on the Fountainheads of World Evil in 2011 - and 2015
New exhibition celebrates the evolution of swimwear

Evolution of swimwear

From bathing dresses in the twenties to modern bikinis
Sun, sex and an anthropological study: One British academic's summer of hell in Magaluf

Sun, sex and an anthropological study

One academic’s summer of hell in Magaluf