LONDON (Alliance News) - GlaxoSmithKline PLC on Wednesday posted a flat third quarter profit and tightened annual outlook to upper end of its estimates on continuation of strong trading momentum.
Shares in Glaxo were up 2.3% at 1,573.00 pence each on Wednesday afternoon.
In the three months to September 30, the pharmaceutical behemoth recorded pretax profit of GBP1.71 billion, broadly unchanged from the year before. Revenue grew to GBP8.09 billion from GBP7.84 billion.
The company's quarterly profit was dented by restructuring and integration costs as well as investments in promotion of products, partly offset by tight control of ongoing costs. Third quarter restructuring and integration charges totaled GBP283 million versus GBP266 million the year before.
Glaxo is now predicting 2018 adjusted earnings per share growth of between 8% and 10% at constant exchange rates, regardless of whether a generic competitor for its Advair asthma drug is launched in the US in the year. Third quarter adjusted earnings per share totaled 35.5 pence, up 14% at constant exchange rates.
The improved forecast is based on sales of the company's Shingrix shingles vaccine, which is now expected to be between GBP700 million and GBP750 million in 2018.
"Strong commercial execution for key products and new launches, notably Shingrix, together with an effective focus on cost control is driving this improved performance," said Glaxo Chief Executive Emma Walmsley.
"Looking further ahead, we remain confident in our ability to deliver the group outlooks for sales and [earnings per share] growth we previously set for the period 2016 to 2020," Walmsley added.
Glaxosmithkline (GSK)