Poor lung drug sales hit GSK in first quarter

GlaxoSmithKline posted a 10 per cent fall in quarterly sales today, highlighting some of the industry pressures behind last week's decision to trade more than $20 billion of assets with Swiss rival Novartis.

Amid a frenzy of M&A in the healthcare sector – including a potential $100 billion bid by Pfizer for AstraZeneca – GSK chief Andrew Witty said he preferred targeted deals like the tie-up with Novartis.

Asked if GSK could consider a “white knight” counterbid for AstraZeneca, he declined to comment specifically but told reporters such broad-based deals were “distracting”.

The company’s performance in the three months ended March was hit by disappointing sales of its top-selling lung drug Advair in the US, where sales fell 20 per cent following reduced reimbursement coverage. – (Reuters)