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Pharmaceuticals giant GSK sees big slump in second-quarter profits amid increasing pressure from generic drugmakers

Pharmaceuticals giant GSK sees big slump in second-quarter profits amid increasing pressure from generic drugmakers
(BBC) - Pharmaceuticals giant GlaxoSmithKline (GSK) has seen a big fall in second-quarter earnings amid continued pressure from generic drugmakers.

GSK reported pre-tax profits of £152m in the April-to-June period, down from £986m in the same period last year.

However, the company said sales in the quarter rose 6% to £5.9bn.

Strong sales of GSK's new HIV treatments helped the company to offset weakness in sales of its Advair lung drug.

"New product performance was positive in all three of GSK's businesses, with the standout performance for the quarter coming from our new HIV drugs, Tivicay and Triumeq," said Sir Andrew Witty, GSK's chief executive officer.

In May, GSK scrapped plans to spin off ViiV Healthcare, the HIV drugs business.

The company said the decision came following the unit's "updated strong positive outlook".

GSK struck a multi-billion-dollar deal with Novartis last year to join forces and reshape their businesses.

"This is our first full quarter of performance since completion of the transaction with Novartis and it is encouraging," Sir Andrew said. "Our integration and restructuring plans are on track and we remain confident that we can achieve our targets for this year and return the group to earnings growth in 2016."

Shares of GSK closed 3.5% higher at 1,374.5p in London.

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