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| Glaxo shares slide as profits and sales fall | |
| (about 1 hour later) | |
| Shares in drug maker GlaxoSmithKline (GSK) are down 6% after its profits were hit by a fall in sales and the strong pound. | |
| The company reported a 23% fall in pre-tax profits to £986m from £1.29bn. | |
| In China, where the group's business has been rocked by allegations of bribery, sales were down 20%. | |
| Chief executive Sir Andrew Witty said in a conference call that he had "zero tolerance" of the practices GSK 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. | Sales at its consumer healthcare business, which sells brands such as Sensodyne, Panadol and Aquafresh, fell 4% due to problems in supply chains. |
| The strong pound has also reduced the impact of overseas profits. | |
| It now expected earnings this year to be " broadly similar to 2013" rather than up 4-8% as it had previously forecast. | |
| Active investigations | Active investigations |
| Chinese authorities are investigating whether GSK paid doctors to encourage them to use its drugs. | 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. | 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. | 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. | 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. | 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" . | 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" . |