* HIV sales help offset margin slide post Novartis deal
* Q2 core EPS 17.3 pence vs consensus 16.7p
* Q2 sales 5.9 billion pounds, in line with consensus
* GSK says has around 40 new drugs and vaccines in PhaseII/III
* Shares up more than 3 percent on earnings beat (Adds CEO comments on pipeline, investor reaction)
By Ben Hirschler
LONDON, July 29 (Reuters) - GlaxoSmithKline moved toreclaim its prowess as a research powerhouse on Wednesday byflagging up dozens of new drugs and vaccines in development, asdemand for new HIV medicines helped it beat quarterly profitforecasts.
Strong sales of Tivicay and Triumeq validated GSK's decisionin May to keep its HIV business, rather than spinning it off,and offset a further slide in revenue from lung drug Advair andlower group profit margins following a major business overhaul.
The drugmaker recently sold its marketed cancer drugs toNovartis and bought the Swiss group's vaccines, whileincreasing its consumer health business through a joint venture.
The $20 billion-plus asset swap was designed to ensuresustainable growth, but the strategy will take time to pay offand GSK reiterated its forecast for a high-teens percentagedecline in 2015 earnings, at constant exchange rates.
Chief Executive Andrew Witty, who reset expectations for thegroup three months ago, is now under intense pressure to delivera promised recovery from next year, following past profitdisappointments and a damaging corruption scandal in China.
Longer-term hopes hinge on the company's research pipelineand GSK said it had around 40 new drugs and vaccines in Phase IIor Phase III clinical development.
Witty told reporters he was particularly excited about a newshingles vaccine, as well as experimental drugs for chronic lungdisease and asthma, anaemia and heart disease.
R&D DAY
The company plans to showcase its line-up of noveltreatments at a research and development (R&D) event in New Yorkin November, which Witty said would be a "key moment" for thecompany. GSK last held such an R&D day in 2003.
"The company has tested the patience of long-term investorsover the past few years," said EdenTree Investment Managementanalyst Ketan Patel. "Looking forward, the focus on the R&D dayin November will be a key catalyst."
Shares in the company were up 3.5 percent by 1250 GMT,outpacing a 1.3 percent gain in the European healthcare sector.
In sterling terms, sales rose 6 percent to 5.9 billionpounds ($9.2 billion) in the three months ended June 30,reflecting the first full quarter that included productspreviously owned by Novartis.
However, core operating profit of 1.35 billion poundsgenerated earnings per share (EPS) which were down 9 percent at17.3 pence because of lower returns on Advair and the fact GSKhas swapped high-margin cancer drugs for less profitableconsumer products.
Analysts on average had forecast sales of 5.9 billion poundsand core EPS, which excludes certain items, of 16.7p, accordingto Thomson Reuters.
The company, which promised in May to pay a steady dividendfor three years, said it would pay out 19p for the quarter.
($1 = 0.6395 pounds) (Editing by Greg Mahlich and Pravin Char)
Glaxosmithkline (GSK)