Glaxo posts jump in profits on new drug sales

Pharmaceutical giant GlaxoSmithKline (GSK) said its profits jumped by more than a third as it posted rises at its core drugs, vaccines and healthcare businesses.

It said its core operating profit rose by 36% to £1.8bn ($2.4bn, €2.1bn) in the second quarter of its year compared to 12 months ago, while sales lifted 11% to £6.5bn.

The group said new product sales more than doubled to £1.05bn in the period driven by its HIV treatments Tivicay and Triumeq as well as respiratory drugs and Meningitis vaccines.

Chief executive Sir Andrew Witty said: "This second quarter's performance reflects further strong execution of the group's strategy and our ability to allocate capital effectively across our three businesses to improve returns.

"Momentum across the group is being driven by growth in new product sales, continued cost control and delivery of restructuring and transaction benefits."

The firm posted a total loss for the period of £151m, but put this down to sterling currency adjustment to valuations of liabilities associated with Consumer Healthcare and HIV businesses.

GSK also delivered a boost to the UK economy post-Brexit, after unveiling plans to invest an extra £275m on three different sites in the country.

GSK said on Wednesday (27 July) that the investment will boost production at its sites in the Scottish town of Montrose, at Barnard Castle in County Durham and in Ware, Hertfordshire.

The former will see £110m invested in a new plant to produce ingredients for respiratory medicines, while the site at Barnard Castle will receive a £92m investment to build a facility that will produce biological molecules.

GSK has a presence in over 150 markets around the world.