Stiff competition offered by generic drug makers may well eat into the profit figures of GlaxoSmithKline, according to company sources. The Cox-2 painkiller of the organization is also likely to suffer as a result of this. The company is also embroiled in a tax related dispute with the Government in the US. The sales of the company for the year rose by13% at Ģ21.6 billion, while its earnings were at Ģ6.7 billion.
The sales of Advair, an asthma drug rose to Ģ851 million during the 2005 last quarter, in spite of the US Food and Drug Administration (FDA) expressing strong reservations with regard to the drug. The sales figure for Avandia was at Ģ289 million for the same quarter, while Avandamet crossed the Ģ46 million figure.
The management chose to be cautious with regard to the 2006 earnings as a result of low priced generic competitors for the antidepressant Wellbutrin XL, hay fever medication Flonase, and Zofran. The per share earnings for 2006 is forecast at only 10% by the company. The results of the Cox-2 painkiller's phase-III tests are also not very encouraging, according to the management of GlaxoSmithKline. Further development with regard to the drug however is being undertaken.