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Glaxo profits hit by fall in sales | Glaxo profits hit by fall in sales |
(35 minutes later) | |
Drug maker GlaxoSmithKline (GSK) has reported a 23% fall in pre-tax profits to £986m from £1.29bn. | |
The company has been hit by a fall in sales and the strong pound which reduces the impact of overseas profits. | The company has been hit by a fall in sales and the strong pound which reduces the impact of overseas profits. |
In China, where GSK's business has been rocked by allegations of bribery, sales were down 20%. | |
Chief executive Sir Andrew Witty said he has "zero tolerance" of the practices the group is being accused of. | |
The group has seen a 10% fall in its drug and vaccine sales in the US, largely due to intense competition from generic drugs. | The group has seen a 10% fall in its drug and vaccine sales in the US, largely due to intense competition from generic drugs. |
Sales at its consumer healthcare business, which sells brands such as Sensodyne, Panadol and Aquafresh, fell 4% due to problems in supply chains. | |
Active investigations | |
Chinese authorities are investigating whether GSK paid doctors to encourage them to use its drugs. | |
Earlier this month, GSK admitted to further bribery problems in its China business as long ago as 2001. | |
On a conference call to discuss the results, Sir Andrew said: "I remain very concerned about allegations concerning our China business. The situation is complicated and difficult and while the investigation is active, there is little I can add," he said. | |
Thirty people were sacked over allegations that doctors and health officials were given payments to push GSK products. | Thirty people were sacked over allegations that doctors and health officials were given payments to push GSK products. |
GSK is trying to find replacements for its inhaled lung drug Advair, which makes up nearly a fifth of its sales and which is being challenged by generic competition. | |
Its heart pill Lovaza will also face competition from generic drugs in the US market from April. | |
Sir Andrew said: "We are confident we can deliver a regular flow of new product introductions over the next few years and this will provide a clear basis for growth in pharmaceuticals" . |