Excellent quarter for GlaxoSmithKline

Britain-based GlaxoSmithKline today has announced a quarter exceeding analysts’ expectations, especially thanks to excellent sales performances from the new herpes vaccine, whose revenues have offset the market share loss due to Advair’s patent expiring in the US: the blockbuster is now  facing competition from generics. According to the most recent estimates the new vaccine, launched only at the end of 2017, will generate approximately GBP700m in 2018. On the occasion, the group’s management has informed it expects revenues to grow by 8-10% over the current year, and CEO Emma Walmsley has confirmed the expectations despite a generic competitor to Advair will be introduced in the US before the end of the year. GSK’s revenues have increased by 6% to GBP8.1bn in Q3 2018, with good performances from all of its three units: pharmaceuticals, vaccines and consumer healthcare. The severe cost cut is apparently delivering the first benefits, indeed profits were up 2% to GBP 1.9bn and EBIT was up 5% to GBP1.7bn.