Glaxo posts £1.89 billion profit
Updated on 25 July 2007
Drug maker GlaxoSmithKline has posted better-than-expected results despite sales of its diabetes treatment Avandia falling more than 20 per cent after health scares.
The company was rocked by claims in a US medical journal in May that Avandia increased the risk of heart attack, although Glaxo has strongly denied the accusations.
The group said sales at its pharmaceutical division remained level at £4.8 billion as sales of other drugs - such as respiratory treatments Seretide and Advair - offset the impact of a 22 per cent fall in Avandia sales to £349 million in the second quarter, as well as increasing US competition.
Glaxo's share price leapt nearly 4 per cent as overall pre-tax profits came in flat at £1.89 billion, slightly above the £1.85 billion expected by analysts.
Group sales were down 2 per cent to £5.67 billion as the firm suffered from the increasing weakness of the US dollar in the three months to June.
Chief executive Jean-Pierre Garnier said the company had "performed well in a challenging quarter".
© Independent Television News Limited 2007. All rights reserved.
These news feeds are provided by an independent third party and Channel 4 is not responsible or liable to you for the same.