GlaxoSmithKline plc (GSK) today announced its results for the year ended 31st December 2005.
Impressive sales growth of key medicines have boosted GlaxoSmithKline to a 17% rise in 2005 profits.
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| GSK produces medicines that treat six major disease areas – asthma, virus control, infections, mental health, diabetes and digestive conditions. In addition, it is a leader in the important area of vaccines and are developing new treatments for cancer. GSK employs 110,000 employees in 80 countries. |
For the full year to 31 December, Europe's largest drugmaker saw its pre-tax profit increase to £6.7 bn ($11.7bn) from £5.8bn in 2004.
Fourth-quarter profit rose 45 percent on sales of vaccines and the asthma treatment Advair. The company forecast earnings to rise about 10 percent in 2006.
Aided by strong sales of its main Advair asthma drug and other key products, sales revenue grew to £21.6bn.
The sales were up 7% on the £20bn achieved the year before.
Sales of Advair were up 22% in 2005 to more than £3bn, while diabetes medication Avandia increased by 18% to £1.3bn. Vaccines rose 15% to £1.4bn.
Glaxo benefited from sales of Relenza, which is being stockpiled to fight bird flu. Last November, Chief Executive Officer Jean-Pierre Garnier said he was talking with six possible partners to help boost production of the anti-viral drug , which is one of only two medicines that have shown positive results against the virus.
Glaxo today also gave an update on its Cervarix cervical cancer vaccine, saying it would file for regulatory approval in Europe next month and in the US by the end of the year.
• Excellent 2005 financial performance:
- EPS growth of 18% CER to 82.6p, with growth in Q4 of 33% CER to 19.8p
- 2005 dividend of 44p
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Key growth products drive 2005 pharma turnover +8% to £18.7 billion:
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Seretide/Advair sales exceed £3 billion, up 22%
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Avandia/Avandamet for diabetes +18% to £1.3 billion
- Vaccines +15% to £1.4 billion
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Significant pipeline progress:
- 7 products to be approved/launched during 2006
- 7 product filings planned for 2006.
Cervarix expected to be filed in the EU in March 2006 and in the USA before the end of 2006
- Late-stage pipeline continues to expand with 8 major assets expected to enter phase III development during 2006
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Financial outlook:
- 2006 earnings per share growth expected to be around 10% in CER terms
Commenting on the 2005 performance and GSK's outlook, JP Garnier, Chief Executive Officer, said:
“GSK’s fourth quarter performance was a great finish to an excellent year for the company. Looking into 2006, the strong growth seen from key products such as
Seretide/Advair, Avandia and from our vaccines business is set to continue, and we expect further good news on GSK’s late-stage pipeline. Eight major assets are scheduled to enter phase III in 2006 – this will double the number of assets in late-stage development. I am also delighted that Cervarix, our cervical cancer vaccine, is expected to be filed for approval in Europe in the next few weeks and in the USA before the end of the year.”
