GlaxoSmithKline results hit by legal charges
- Published
Claims over GlaxoSmithKline's drugs - including diabetes treatment Avandia - knocked profits heavily
GlaxoSmithKline has reported a loss for the second quarter of the year following one-off charges for legal and restructuring costs.
The the world's second-biggest drugs company reported a pre-tax loss of 拢97m, compared with a profit of 拢2bn in the same period last year.
Glaxo had announced last week that the costs of various legal settlements would 拢1.57bn ($2.4bn).
And it was also hit by a 拢591m charge for restructuring its US business.
Strategy
The legal costs cover a range of cases, including claims over its diabetes treatment Avandia, antidepressant Paxil and an investigation into standards at a Puerto Rico factory.
Glaxo's turnover rose by 4% to 拢7bn after a 13% fall in US sales was offset by growth in emerging markets and Japan. It was also helped by 拢275m in sales of the H1N1 avian flu vaccine.
The group is attempting to make itself more competitive in the US, but also reduce its reliance on developed markets.
Glaxo's aim is to reduce reliance on "white pills in Western markets", the part of the business most vulnerable to generic competition and pricing pressure.
- Published1 July 2010