* Q4 sales 6.19 billion stg vs consensus 6.20 billion stg
* Q4 core EPS 27.3 pence versus consensus 25.9 pence
* Sees signs of regaining respiratory market share
* Novartis deal on track to close in first half of 2015 (Adds further CEO comment, analyst, updates shares)
By Ben Hirschler
LONDON, Feb 4 (Reuters) - GlaxoSmithKline has begunrebuilding market share in respiratory medicine, its chiefexecutive said, after weak demand for lung drug Advair hurtfourth-quarter sales and capped a rough year for Britain's topdrugmaker.
GSK is also banking on an asset swap with Novartis to help to revive its fortunes and is looking to unlock value bylisting its HIV unit ViiV Healthcare. It has hired three banksto advise on ViiV options, according to sources familiar withthe matter.
Chief Executive Andrew Witty is under pressure after failingto deliver on earlier promises to return the drugmaker togrowth.
The company expects a challenging first half of the year,including tough market conditions in the United States, but astronger performance in the second half, it said on Wednesday.
Witty said GSK is already gaining market share among newrespiratory patients in Japan and the United States, where15-year-old Advair and new lung drugs Breo and Anoro areavailable.
"I am not saying to you on this call (that) I hope to seemarket share increase for respiratory, I am telling you themarket shares have begun to go up in the last few weeks," Wittytold reporters. "What I am not guaranteeing is exactly how thatis going to play out for the rest of the year."
SUSTAINABLE GROWTH?
The company did not give 2015 financial forecasts butpromised to brief investors once it closed the $20 billionNovartis deal.
GSK is buying vaccines, selling cancer drugs and forming aconsumer health joint venture with Novartis in a transactiondesigned to ensure more stable and predictable long-term growth.The deal is due to close in the first half of this year.
Sales in the final quarter of 2014 were 6.19 billion pounds($9.42 billion), down 8 percent year on year, while coreearnings per share (EPS), the measure followed most closely byinvestors, fell 6 percent to 27.3 pence.
The average forecast from analysts had been sales of 6.2billion pounds and core EPS, which excludes certain items, of25.9 pence, according to Thomson Reuters data.
The better than expected earnings, helped by cost cuts and alower tax rate, and the upbeat comments on respiratory saleshelped to lift the company's shares 1.5 percent by 1430 GMT.
"If the respiratory franchise can stabilise this year, the2016-plus horizon should see a return to growth," said analystsat Bernenberg Bank, which rates the stock a "hold".
As well as refocusing the business, the Novartis deal alsogives GSK potential flexibility to spin off some operations.
The drugmaker first announced plans in October for aninitial public offering (IPO) of a minority stake in ViiVHealthcare, and Witty told Reuters this month that this couldserve as a model for future moves.
Analysts have pencilled in the IPO for 2016, which may helpto underpin the dividend next year. GSK's flagging growth meansits dividend is stretched, though the company has already saidit will be held at the 2014 level of 80p in 2015. ($1 = 0.6573 pounds) (Editing by Elaine Hardcastle and David Goodman)