(Adds details, background)
Feb 3 (Reuters) - Britain's GSK forecast a dip in
earnings this year as it grapples with COVID-19 disruptions and
invests in its pipeline of new drugs, and said its plans to
split into two businesses were on track.
The world's biggest vaccine maker by sales said on Wednesday
it expected adjusted earnings to fall by a mid- to high-single
digit percentage at constant exchange rates.
Turnover for the fourth-quarter of 2020 fell 2% to 8.74
billion pounds ($11.9 billion) and adjusted earnings came in at
23.3 pence per share, both slightly higher than analysts'
average forecast.
While the COVID-19 pandemic has boosted demand for GSK's
over-the-counter painkillers, it has disrupted other parts of
its business as patients have made fewer trips to doctors.
Earlier on Wednesday, GSK said it was teaming up with German
biotech firm CureVac to develop a COVID-19 vaccine to
target several variants of the virus with one shot.
Rather than developing its own COVID-19 shot, GSK has so far
focused on supplying its vaccine booster, or adjuvant, to other
drugmakers. But it has had two big setbacks, as a project with
Sanofi was delayed, while China's Clover ended its
deal with GSK on Monday.
Meanwhile, companies using new technologies that don't
require adjuvants, including Pfizer/BioNTech
and Moderna, are already rolling out COVID-19 vaccines.
GSK last year launched a two-year programme to split in two
after the merger of its over-the-counter products business into
a venture with Pfizer that created a market leader with brands
from Sensodyne toothpaste to Panadol painkillers. That will be
split from its drug making business.
($1 = 0.7335 pounds)
(Reporting by Pushkala Aripaka in Bengaluru and Ludwig Burger
in Frankfurt; Editing by Saumyadeb Chakrabarty and Mark Potter)
Glaxosmithkline (GSK)