GlaxoSmithKline 4Q profits up 45%

02/08/06 - newratings.com

LONDON, February 8 (newratings.com) - Pharmaceutical major GlaxoSmithKline Plc (GSK-GBX) Wednesday announced a 45% rise in its fourth-quarter profits.

Europe’s largest drugmaker said its net income for the three months ended December 31 rose to £1.12 billion, from £774 million in the year-ago quarter. The company’s revenues climbed 13% to £5.91 billion in the fourth quarter. In constant currency terms, GlaxoSmithKline announced 23% sales growth for Advair, generating revenues of £851 million from its asthma drug. The company said sales of its diabetes drug, Avandia, jumped 26% to £289 million. GlaxoSmithKline witnessed a 17% rise in vaccine sales to £420 million.

For the full year, the company’s earnings rose 20% to £4.69 billion, or 82p per share, on revenues of £21.66 billion, up 8% from the level achieved in 2004. The pharmaceutical giant’s profits were boosted by robust sales growth of key medicines. GlaxoSmithKline’s chief executive Jean-Pierre Garnier said, "GSK's fourth-quarter performance was a great finish to an excellent year for the company."

The company projected a 10% rise in its earnings per share at constant currencies. GlaxoSmithKline plans to repurchase shares worth £1 billion this year.