GlaxoSmithKline Posts GBP354 Million Net Loss in 4Q
February 03 2016 - 8:23AM
Dow Jones News
By Denise Roland
GlaxoSmithKline PLC swung to a net loss in the fourth quarter of
the year even as revenue increased, largely due to restructuring
costs following its three-part transaction with Novartis AG.
The U.K.-based drugmaker said its loss attributable to
shareholders was GBP354 million ($510 million) in the quarter
ending Dec. 31, compared with a GBP1 billion profit a year earlier,
while revenue climbed to GBP6.3 billion from GBP6.2 billion. Core
net profit, which strips out some one-time items, fell 34% to
GBP874 million. Analysts had expected revenue of GBP6.3 billion and
core net profit of GBP903 million.
The decline in core net profit was largely down to Glaxo's shift
to a higher-volume, lower-margin business following its $20 billion
asset-swap deal with Novartis. In that deal, which closed in the
first quarter of 2015, Glaxo traded its cancer drugs for the Swiss
company's vaccines business. The pair also formed a joint venture
for their consumer health care businesses which span
over-the-counter drugs, such as painkiller Panadol, as well as
non-pharmaceuticals like toothpaste.
Write to Denise Roland at Denise.Roland@wsj.com
(END) Dow Jones Newswires
February 03, 2016 08:08 ET (13:08 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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