GlaxoSmithKline says 1st quarter profit rose 19 percent on strong Asia Pacific sales

GlaxoSmithKline says Q1 profit up 19 pct

LONDON — GlaxoSmithKline, the world’s second-largest drug maker by revenue, on Wednesday reported a nearly 19 percent rise in first quarter profit, led by strong sales growth in the Asia-Pacific region and emerging markets.

The pharmaceutical company said net profit for the first three months of the year was 1.34 billion pounds ($2.4 billion), up from 1.13 billion pounds in the first quarter last year.

Revenue rose 9 percent to 7.4 billion pounds.

The company said underlying sales — excluding the impact of pandemic products, including Relenza and H1N1 vaccine — rose by 4 percent. Sales of H1N1 vaccine totaled 698 million pounds, or half the company’s vaccine sales.

Sales in the United States were down 1 percent, reflecting continuing pressure from generic drug competition. The company said sales were up 45 percent in the Asia-Pacific region, 43 percent in emerging markets and 16 percent in Europe.

It increased its quarterly dividend to 15 pence from 14 pence.

GSK shares finished the day at 1,217 pence, up 0.25 percent on the London Stock Exchange.

“Investors heard little by way of pipeline developments over the period and with no major catalysts on the near horizon we suspect that investor attention is more likely to be gripped by the pan-European Pharma sector,” said Jeremy Batstone-Carr, an analyst at Charles Stanley & Co.

He said the results were broadly in line with analysts’ forecasts.

Chief Executive Andrew Witty said the company was on track to achieve 2.2 billion pounds of annual cost savings by 2012, with annual savings rising to 1.5 billion pounds by the end of this year.

The company said it had absorbed the impact of U.S. health care reform legislation in the first quarter, “and we expect to offset any further impact through continued operational performance.”