About Careers MedBlog Contact us

GSK Encounters Initial Resistance Following Directional Shift, Says GlobalData Analyst

by Dr. Trupti Shirole on February 12, 2015 at 8:22 AM
Font : A-A+

 GSK Encounters Initial Resistance Following Directional Shift, Says GlobalData Analyst

GlaxoSmithKline plc (GSK) is realigning its operating structure with its corporate objectives and cashing in on its assets. Following a less than flattering financial performance in 2014, the company seeks to drive up external investments and deliver stronger shareholder returns in the long term, informed an analyst with research and consulting firm GlobalData.

In 2014, excluding divestments, GSK's total revenue fell by 10% year-on-year while operating profits were down by 15% on a pro forma basis. The growing strength of the pound sterling was largely to blame for lower revenues through the first three quarters of the year. Also, a large proportion of the company's decline was inorganic.


Chloe Thornton, MSc, GlobalData's Company Analyst, said, "Within its central pharmaceuticals business, GSK's greatest growth resistor was by far its flagship respiratory franchise, which fell by 10% year-on-year to just over 6 billion ($9.8 billion), excluding currency impact. GSK invested heavily in developing its respiratory pipeline, but the expectation that it could compensate for the imminent patent cliff facing Seretide/Advair appears optimistic. Sales of Breo Ellipta came to 67 million ($106 million), while Anoro earned just 17 million ($27 million) in 2014, well short of GSK's estimates. In addition, a further 26 pharmaceutical products witnessed year-on-year declines through 2014, at a total loss of 1.2 billion ($1.9 billion). Despite the strong performance of GSK's cancer therapeutics business, the company has agreed to divest its oncology assets to Novartis, while GSK is also considering divesting a share of its stake in its other best performing business, the ViiV Healthcare joint venture. The strength of GSK's oncology portfolio against a backdrop of decline elsewhere across its pharma business somewhat calls into question the decision to trade these assets to Novartis. However, the $16 billion capital boost GSK will derive from the deal when it is completed over the next few months should help to dispel those concerns, provided the company can proactively invest this capital in areas of high growth potential."

Source: Medindia


Latest Press Release

 Don't Drink and Swim: Australian Medical Association
Authorities have warned people to be careful when taking part in water recreation activities over the summer months, especially when alcohol is involved.
 Hemophilia A and B Treatment Market Value to Hit $6.3 Billion by 2024: GlobalData
Hemophilia A and B treatment market is set to experience limited growth, rising from $5.4 billion in 2014 to $6.3 billion by 2024, says GlobalData.
Doctors Strike Against Suspension of Colleague in Kerala, South India
The medical fraternity demands the withdrawal of suspension of the doctor who was on duty at the General Hospital, Thiruvananthapuram last Tuesday.
American Lung Association Hails the USPSTF's New Tobacco Cessation Recommendation
Harold P. Wimmer opines that the quitting smoking is one of the most effective things someone can do to improve their health and prevent illness and disease.
Niger Health Workers Armed With Determination in Fight to Save Children
Prenatal consultations, checking on newborn babies and family planning: I brave every danger to make my way round 17 villages on foot, says Salamatou Zahadi.
View All
This site uses cookies to deliver our services.By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Use  Ok, Got it. Close

GSK Encounters Initial Resistance Following Directional Shift, Says GlobalData Analyst Personalised Printable Document (PDF)

Please complete this form and we'll send you a personalised information that is requested

You may use this for your own reference or forward it to your friends.

Please use the information prudently. If you are not a medical doctor please remember to consult your healthcare provider as this information is not a substitute for professional advice.

Name *

Email Address *

Country *

Areas of Interests