GlaxoSmithKline, Europe's biggest drugmaker, reported a solid increase in second-quarter profits today as strong sales of asthma drug Advair helped offset the impact of a weak dollar.
Pre-tax profits rose 7 per cent from a year earlier to £1.83 billion (€2.87 billion), sales grew 6 per cent to £5.42 billion.
Sales of Advair more than doubled to £416 million, making the medicine GSK's second-largest product, following its US launch in April last year.
GSK’s shares were up 1.7 per cent at £10.74 pounds at noon following the results, reversing earlier losses.
GSK is still reaping savings from the merger that created the group in 2000 - but it is struggling to reassure investors about future prospects following a string of setbacks that threaten to slow earnings growth to single digits from 2003.
The recent launch of a cheap generic form of its top-selling antibiotic Augmentin has sunk the shares to their lowest level in five years, while Pfizer's agreed bid for Pharmacia has fuelled speculation that GSK may respond with another big merger to boost earnings.
Earlier today, GSK and its partner Bayer said US regulators had approved in principle a new erectile dysfunction drug, vardenafil, but its launch will be delayed to 2003 from 2002 while extra studies are carried out.