Generic risk dampens enthusiasm at GSK's strong first quarter

Emma Walmsley, the new chief executive of GlaxoSmithKline (LSE: GSK), was able to point to some pretty impressive sales figures as she presented her first quarterly results at the UK drug major, helped partly by the weak pound.

The figures did not stop GSK’s share price from dipping by 1.3% to £15.79 in the four hours after the results were announced, however, a drop blamed on the likely further decline in sales of the respiratory drug Seretide/Advair (salmeterol/fluticasone).

Overall quarterly revenue increased by 19% at actual exchange rates (AER) or 5% at constant exchange rates (CER) compared to the first quarter of 2016, reaching £7.38 billion ($9.47 billion). This total was better than expected. Analysts surveyed by FactSet had estimated that the figure would be around £7.25bn.