A bullish GlaxoSmithKline (LON:GSK) chief executive Andrew Witty hailed its new HIV treatments as second quarter sales outstripped forecasts.
"Sales grew 7% on a reported basis and 2% pro-forma, “he said, with new products doing well in all three of GSK's divisions.
HIV treatments, Tivicay and Triumeq were the stand-outs generating sales of £294mln. Growth in the new areas was now offsetting the decline in stalwarts Seretide and Advair, Witty said. Sales of its long-standing ashtma treatments fell by 13% to £910mln.
Overall, sales rose to £5.89bn in the three months to June and by 4% to £11.5bn over the half year.
China was a weak spot as the company sought to regain momentum from the bribery scandal that resulted in a £297mln fine last year. Sales in China fell 14%, which reflected lower prices said the company.
The results were the first to reflect fully the swap of most of its cancer drugs for Novartis’s vaccines arm and Witty added he was confident earnings would start to grow again in 2016.
Second quarter earnings fell 9% to 3.1p and 14% over the half year, which was in line with Glaxo’s forecasts, but it repeated EPS next year should grow at a double digit rate.
The pharma has 40 drugs in phase II or phase III trials and Witty said new products would be unveiled at its R&D day in November in HIV, Oncology, Vaccines, Cardiovascular, Immuno-inflammation and Respiratory diseases.
The dividend for the quarter was 19p and Glaxo added it expects to pay a special dividend of 80p.