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 £21.6 billion, while its earnings were at £6.7 billion.
The sales of Advair, an asthma drug rose to £851 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 £289 million for the same quarter, while Avandamet crossed the £46 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.
As many as another seven medicines are expected to be launched in 2006, which are inclusive of Entereg, Arranon, and Avandaryl. The regulators will be called upon to give their approval for seven more medicines also, which is inclusive of an anti H5N1 bird flu vaccine. The organization is also seeking to make some acquisitions during the course of the year. The consumer healthcare business of Pfizer is reported to be one among the targets of the company.
