GlaxoSmithKline upbeat on medium-term outlook

Pharmaceutical giant GlaxoSmithKline has reported rising full-year sales and profits, while pointing to a pipeline of new products that will help its performance in 2018.

The group – one of the largest employers in Angus through its Montrose manufacturing facility – saw turnover rise 3% at constant exchange rates to £30.2 billion, while adjusted operating profit increased 5% to £8.56bn.

It said its performance was helped by successful respiratory treatments and HIV products.

All three of the group’s divisions – pharmaceuticals, vaccines and consumer healthcare – posted solid sales growth.

In the fourth quarter, revenue rose 4% to £7.63bn, with profit 5% up at £2bn.

Chief executive Emma Walmsley said: “With the sales momentum we anticipate from new and recent launches and focused improvements in operating performance, we are increasingly confident in our ability to deliver mid to high single digit growth in adjusted earning per share.”

However, Ms Walmsley said forward guidance was dependent on the impact of a possible generic competitor to GSK’s Advair asthma treatment in the US.

Should none arrive, adjusted earnings per share are expected to grow between 4% and 7%.

In the event of a mid-year introduction, that could fall to 3%.

But GSK pointed to three new product launches – Trelegy Ellipta, Juluca and Shingrix – it expected to receive a boost from this year.

Shares closed 42.6p up at 1,285.4p last night.

A technician at GSK’s Montrose facility.