GlaxoSmithKline 1st-qtr 2011 sales and earnings down but firm back in the black; Lovaza subpoena

After revealing a more than $1 billion loss for the fourth quarter of 2010 as a result of legal charges (mostly associated with its diabetes drug Avandia [rosiglitazone]; The Pharma Letter February 4), UK pharma giant GlaxoSmithKline (LSE: GSK) reported first-quarter 2011 results showing that, despite a downturn in both sales and earnings, the company was back in profit.

The company posted a 10% decline in first-quarter revenue to £6.585 billion ($10.91 billion), impacted by a sharp decline in sales of pandemic flu vaccines and antivirals but said quarterly profits were supported by strong sales of new products, continued expansion in emerging markets and Japan as well as asset disposals.

GSK said that net profit for the quarter was £1.64 billion before major restructuring, beating the £1.54 billion predicted in a Dow Jones Newswires survey of 10 analysts, and up 5.1% from the £1.56 billion posted in the like, year earlier period. Before restructuring charges of £135 million in the first quarter, the firm’s earnings per share were 32.2 pence, up 9% at constant exchange rates and 5% higher in sterling. Total EPS was 30.0 pence, up 19% at CER and 14% higher in sterling, helped by asset disposals such as Quest Diagnostics for $1.7 billion and product rights to Valeant for $300 million.