GlaxoSmithKline encounters initial resistance following directional shift, says analyst

Following a less than flattering financial performance in 2014, UK pharma major GlaxoSmithKline (LSE: GSK) is realigning its operating structure with its corporate objectives and cashing in on its assets in the process, as the company seeks to drive up external investments and deliver stronger shareholder returns in the long term, says an analyst with research and consulting firm GlobalData.

Excluding divestments, GSK’s total revenue fell by 10% year-on-year while operating profits were down by 15% on a pro forma basis in 2014. While the growing strength of the pound sterling was largely to blame for lower revenues through the first three quarters of the year, a large proportion of the company’s decline was inorganic.

Flagship respiratory franchise sales fell 10%