Glaxo Shares Up On Positive Earnings News
International Business Times
Published Oct 22, 2014 12:16PM ET
Updated Oct 22, 2014 12:45PM ET
Glaxo Shares Up On Positive Earnings News
By Kathleen Caulderwood - GlaxoSmithKline plc NYSE:GSK beat analysts' earnings expectations for its most recent quarter, and said Wednesday that it plans to reduce expenses by 1 billion pounds in the next few years, and explore the possibility of an initial public offering for its HIV research company. Though the pharmaceutical giant's sales continue to be pulled down by its U.S. business, the news allayed investor fears surrounding a recent corruption scandal in China.
Shares of the U.K.’s largest drugmaker surged more than 2 percent to $44.60 in Wednesday morning's trading.
The company’s third-quarter sales were down 10 percent from the year earlier. Core earnings per share stayed flat at 27.9 pence. Its pharmaceutical and vaccine sales were down 3 percent globally, but saw 12 percent growth in emerging markets and six percent in Japan.
Sales of Advair, its best-selling drug, fell 13 percent amid greater competition in the U.S. as well as “formulary and contract changes” that were greater than executives had anticipated.
Executives also said they were exploring an initial public offering for Viiv Healthcare, its HIV drug developer, a joint venture with Pfizer Inc., and Shionogi & Co.
GSK inherited Ebola drug research last year, when it acquired the small European biotech firm, Okairos. Glaxo stock also received a boost in recent months thanks to its research, but its share price remained down 13 percent for the year, even after it announced plans to fast-track human trials of its experimental vaccine, which should be ready by the end of this year.
Get The News You Want
Written By: International Business Times
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.