GlaxoSmithKline return to sales growth is held back by austerity-led price pressure
Sharp declines in drug revenues in Europe and the US as austerity-struck governments demand price cuts saw Britain's biggest pharmaceuticals group, GlaxoSmithKline, yesterday warn of flat sales this year.
It is a blow for GSK, which had set itself a target of returning to sales growth this year, after suffering the impact of patent expiries and a record-breaking mis-selling fine in the US.
But the drug maker saw sales fall 2 per cent to £6.5bn in the three months to June, mainly due to its European business, where state health budgets were slashed and revenues fell 8 per cent.
The European division also saw a 1 per cent decline in demand as generic rivals continued to eat into sales of some of GSK's blockbuster drugs.
GSK's revenues for the quarter were £200m lower than City analysts had expected and the shares dropped by 19p to 1,426p.
Its chief executive Sir Andrew Witty has been pushing for GSK to diversify away from "white pills in Western markets".
He claimed the drug maker's research and development work during the quarter had been "remarkable".
- 1 I was a Woman Against Feminism too
- 2 Students offered grants if they tweet pro-Israeli propaganda
- 3 The Tory donor whose firm is one of Britain’s biggest tax avoiders - with HMRC's blessing
- 4 John Barrowman praised for Commonwealth Games opening ceremony gay kiss
Peaches Geldof cause of death: Socialite had taken fatal dose of heroin after years of addiction, inquest concludes
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned
Peaches Geldof: Her final day – and her fatal decision
Israel-Gaza conflict: Israel may have committed war crimes, says UN human rights chief
John Barrowman praised for Commonwealth Games opening ceremony gay kiss
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
iJobs Money & Business
£18000 - £20000 per annum + OTE £25K: SThree: SThree Group has been well estab...
competitive: Progressive Recruitment: This really is a fantastic chance to joi...
£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...
£60000 - £75000 per annum + BONUS + BENEFITS: Harrington Starr: Business Anal...