GlaxoSmithKline warns profitability will take a hit

Pharmaceutical giant GlaxoSmithKline (GSK) warned they will take a hit on profits for 2019 due to competition over Advair, an asthma drug, despite rising sales.

Adjusted earning per share (EPS) will decline between 5% and 9% after the approval of a generic competitor of Advair in the US.

Emma Walmsley, chief executive of GSK said, “GSK delivered improved operating performance in 2018 with Group sales growth, strong commercial execution of new product launches, especially Shingrix, continued cost discipline and better cash generation.

“It was also a significant year for the Group strategically, with the launch of a new R&D strategy focused on immunology, genetics and new technologies, together with a series of transactions that support our strategy and reshape of the Group’s portfolio.”