GlaxoSmithKline revenues slip

3rd Feb 2011 12:04

Drug group GlaxoSmithKline saw revenues fall in 2010 as it felt the pinch of generic competition and the end of a boost from sales of pandemic-related products.Turnover for the year to 31 December was down to £28.4bn a 1% decline from the previous year. Pre-tax profits were down to £4.5bn from £8.7bn.The full-year dividend was raised by 7% to 65p.Sales in the pharmaceuticals division fell by 11% to £7.6bn largely due to generic competition to its genital herpes treatment Valtrex. Weak sales of Avandia, a controversial diabetes drug, also hit pharmaceutical sales.Sales were impacted by a reduction in revenues from drugs such that had been in demand previously to guard against pandemics.While sales were lower in the US and Europe, emerging markets, which account for a smaller portion of pharmaceutical sales, saw a strong uplift.Sales of consumer healthcare products, a range that includes Macleans toothpaste and Beechams cold relief, rose by 5% to £5bn. "Whilst our operating environment remains challenging, I believe we have made significant progress through restructuring and a rigorous returns-based approach to capital allocation," said chief executive Andrew Witty.