LONDON (Alliance News) - GlaxoSmithKline PLC Wednesday said it was on track to achieve its guidance for 2015, and remains confidence in its outlook for 2016, as exceptional gains from asset sales helped boost profit in its first half.
At the time of its first quarter results Glaxo said it expects to see core earnings per share decline at a high-teens percentage rate on a constant currency basis for 2015, mostly due to pricing pressure on Advair in the US and Europe, and the dilutive effect of its three part deal with Novartis.
It expects to see significant recovery in core earnings per share in 2016, with percentage growth expected to reach double digits on a constant currency basis.
The FTSE 100-listed pharmaceutical giant posted a pretax profit of GBP10.08 billion, increased from GBP1.89 billion a year before primarily as a result of a GBP8.45 billion gain related to the sale of its oncology business to Novartis, as revenue rose to GBP11.51 billion from GBP11.17 billion.
Glaxo agreed a three-part deal with Novartis last year to sell the Swiss company its its oncology portfolio, buy Novartis' global vaccines business, and create a joint consumer healthcare business.
Glaxo kept its second quarterly dividend at 19 pence, and reiterated its expectations for a full year dividend of 80 pence.
During the half year revenue from pharmaceuticals fell 7%, whilst vaccines were up 11%, and consumer healthcare was up 37%.
"This is our first full quarter of performance since completion of the transaction with Novartis and it is encouraging. 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," said Chief Executive Officer Andrew Witty in a statement.
Shares in GlaxoSmithKline were up 3.1% at 1,370.00 pence Wednesday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Glaxosmithkline (GSK)