GSK posts Q2 profit rise

Q2 2006 profit reached GBP1.32 billion ($2.45 billion), up from GBP1.16 billion for Q2 2005. Earnings per share (EPS) hit 23.3 pence, compared to 20.2 pence for Q2 2005.

Pharmaceutical turnover rose 10% to GBP5 billion ($9.3 billion), driven by a strong performance in the US. Sales in Europe were impacted by generic competition to several key products, including Lamictal, Imigran and Zofran. However, continued strong growth from Seretide/Advair, Avandia and vaccines has offset this impact with overall sales in Europe level at GBP1.4 billion ($2.6 billion) for the quarter.

Seretide/Advair was a key contributor to the company’s growth for the quarter, with sales for asthma and COPD rising 12% to GBP822 million ($1.5 billion), with growth across all regions.

The Avandia product line for the treatment of type 2 diabetes also continued to perform strongly, with growth of 32% in the quarter to GBP477 million ($887 million). Reported US sales growth benefited from the re-supply of Avandia and Avandamet to the market, which took place in the quarter. Avandia products also performed very strongly in Europe, with sales of Avandamet more than doubling in the quarter.

Vaccines sales, meanwhile, rose 17% to GBP387 million ($720 million), driven by the continued strong performance of GSK’s multiple vaccine for children, Infanrix/Pediarix, worldwide sales of which grew 38% to GBP129 million ($240 million).

Other key growth drivers – Lamictal, Valtrex, and Coreg – contributed GBP619 million ($1.2 billion).

GSK’s consumer healthcare segment saw its sales grow 5% to GBP790 million ($1.5 billion), with strong Lucozade and Sensodyne sales helping offset reductions in sales for the Ribena and Aquafresh brands.