GlaxoSmithKline said first-quarter profit fell even after currency gains helped offset losses from generic threats to five of the company’s products.
Net income declined to £1.13 billion, from £1.31 billion, London-based Glaxo said in a statement. Earnings excluding some items gained to 26.3 pence per share, from 25.6 pence.
Five products that generated £586 million in first- quarter 2008 sales in the US all have faced cheaper competition there in the last year: antidepressants Wellbutrin XL and Paxil CR, the Imitrex migraine pill, epilepsy drug Lamictal and Requip for restless legs.
The dollar, euro and yen all appreciated against the pound over the quarter, inflating revenue.
“This is a tough quarter due to additional patent expirations pressurizing the top line and one-off gains boosting the first quarter of 2008,” Citigroup analysts including Kevin Wilson wrote in a note to clients on April 16th.
Glaxo’s earnings per share excluded costs of a reorganization program, expanded in February, aimed at saving £1.7 billion a year by 2011. Glaxo has slashed about 10,000 jobs since October 2007.
Glaxo fell 27.5 pence, or 2.6 per cent, to 1,023.5 pence at 12.05pm in London trading. Before today, the stock had fallen 18 per cent this year.
Reuters