Garnier - 'GSK feels chronic pain from lawyers' fees to fight off legal attacks

[Guest guest]

ROFL

http://www.guardian.co.uk/business/story/0,,1270512,00.html

GSK feels chronic pain from lawyers' fees, says Garnier

Wednesday July 28, 2004

The Guardian

GlaxoKline chief executive Jean-Pierre Garnier railed against

the " chronic pain " of paying lawyers to fight off " legal attacks " on

the pharmaceuticals industry yesterday.

As he sought to shrug off a 13% decline in second quarter pre-tax

profits to £1.6bn at the British drugs group, Mr Garnier pointed

to

the rising price of legal actions for adding to its costs. He is

fighting legal battles on several fronts, including against the high-

profile New York state attorney-general Eliot Spitzer, who has

accused the firm of failing to warn doctors about the effects of its

anti-depressant, Seroxat, on children.

In South Africa, Aids campaigners are seeking to have Glaxo's drugs

pricing practices ruled anti-com petitive, and in the US it is

contesting a £2.7bn bill for alleged under-payment of taxes. Glaxo

has £1bn put aside to cover all its potential legal liabilities.

" There is going to be money that, instead of getting diverted to

research and development, will go in the pockets of the plaintiff

lawyers, " Mr Garnier said.

His remarks to investors came as they digested news that Glaxo's

turnover was 6% down in the first six months of the year, with pre-

tax profits down 9% on a reported basis.

Sales of Seroxat and its other top-selling anti- depressant

Wellbutrin have collapsed in the face of competition from cut-price

generic copies, and the continuing decline in the dollar has

exacerbated the decline in turnover. Wellbutrin sales were more than

40% lower in the second quarter than the same period a year ago.

Levitra, the erectile dysfunction drug which GSK launched last year

with a high-profile advertising campaign in the US, has performed

much less strongly than hoped, with £9m sales in the second

quarter.

However, the asthma drug Advair, which GSK is relying on to help

offset the decline in revenue from Seroxat and Wellbutrin, clocked

up better than expected 22% growth in the second quarter. Glaxo said

that it would reapply for its patent on Advair, to increase its

protection against generic competition.

The group reaffirmed its expectation that this year's earnings will

be roughly in line with last year's, and Mr Garnier said he hoped

for a return to growth in 2005. The shares closed up 17p at

£10.88.

GSK has repeatedly been criticised for failing to plug the revenue

gaps caused by the expiry of patents on its blockbuster drugs by

inventing new products.

Finance director Coombe admitted yesterday that the progress

towards filling out its pipeline of drugs in development

was " painfully and frustratingly slow " .

[Guest guest]

ROFL

http://www.guardian.co.uk/business/story/0,,1270512,00.html

GSK feels chronic pain from lawyers' fees, says Garnier

Wednesday July 28, 2004

The Guardian

GlaxoKline chief executive Jean-Pierre Garnier railed against

the " chronic pain " of paying lawyers to fight off " legal attacks " on

the pharmaceuticals industry yesterday.

As he sought to shrug off a 13% decline in second quarter pre-tax

profits to £1.6bn at the British drugs group, Mr Garnier pointed

to

the rising price of legal actions for adding to its costs. He is

fighting legal battles on several fronts, including against the high-

profile New York state attorney-general Eliot Spitzer, who has

accused the firm of failing to warn doctors about the effects of its

anti-depressant, Seroxat, on children.

In South Africa, Aids campaigners are seeking to have Glaxo's drugs

pricing practices ruled anti-com petitive, and in the US it is

contesting a £2.7bn bill for alleged under-payment of taxes. Glaxo

has £1bn put aside to cover all its potential legal liabilities.

" There is going to be money that, instead of getting diverted to

research and development, will go in the pockets of the plaintiff

lawyers, " Mr Garnier said.

His remarks to investors came as they digested news that Glaxo's

turnover was 6% down in the first six months of the year, with pre-

tax profits down 9% on a reported basis.

Sales of Seroxat and its other top-selling anti- depressant

Wellbutrin have collapsed in the face of competition from cut-price

generic copies, and the continuing decline in the dollar has

exacerbated the decline in turnover. Wellbutrin sales were more than

40% lower in the second quarter than the same period a year ago.

Levitra, the erectile dysfunction drug which GSK launched last year

with a high-profile advertising campaign in the US, has performed

much less strongly than hoped, with £9m sales in the second

quarter.

However, the asthma drug Advair, which GSK is relying on to help

offset the decline in revenue from Seroxat and Wellbutrin, clocked

up better than expected 22% growth in the second quarter. Glaxo said

that it would reapply for its patent on Advair, to increase its

protection against generic competition.

The group reaffirmed its expectation that this year's earnings will

be roughly in line with last year's, and Mr Garnier said he hoped

for a return to growth in 2005. The shares closed up 17p at

£10.88.

GSK has repeatedly been criticised for failing to plug the revenue

gaps caused by the expiry of patents on its blockbuster drugs by

inventing new products.

Finance director Coombe admitted yesterday that the progress

towards filling out its pipeline of drugs in development

was " painfully and frustratingly slow " .

[Guest guest]

ROFL

http://www.guardian.co.uk/business/story/0,,1270512,00.html

GSK feels chronic pain from lawyers' fees, says Garnier

Wednesday July 28, 2004

The Guardian

GlaxoKline chief executive Jean-Pierre Garnier railed against

the " chronic pain " of paying lawyers to fight off " legal attacks " on

the pharmaceuticals industry yesterday.

As he sought to shrug off a 13% decline in second quarter pre-tax

profits to £1.6bn at the British drugs group, Mr Garnier pointed

to

the rising price of legal actions for adding to its costs. He is

fighting legal battles on several fronts, including against the high-

profile New York state attorney-general Eliot Spitzer, who has

accused the firm of failing to warn doctors about the effects of its

anti-depressant, Seroxat, on children.

In South Africa, Aids campaigners are seeking to have Glaxo's drugs

pricing practices ruled anti-com petitive, and in the US it is

contesting a £2.7bn bill for alleged under-payment of taxes. Glaxo

has £1bn put aside to cover all its potential legal liabilities.

" There is going to be money that, instead of getting diverted to

research and development, will go in the pockets of the plaintiff

lawyers, " Mr Garnier said.

His remarks to investors came as they digested news that Glaxo's

turnover was 6% down in the first six months of the year, with pre-

tax profits down 9% on a reported basis.

Sales of Seroxat and its other top-selling anti- depressant

Wellbutrin have collapsed in the face of competition from cut-price

generic copies, and the continuing decline in the dollar has

exacerbated the decline in turnover. Wellbutrin sales were more than

40% lower in the second quarter than the same period a year ago.

Levitra, the erectile dysfunction drug which GSK launched last year

with a high-profile advertising campaign in the US, has performed

much less strongly than hoped, with £9m sales in the second

quarter.

However, the asthma drug Advair, which GSK is relying on to help

offset the decline in revenue from Seroxat and Wellbutrin, clocked

up better than expected 22% growth in the second quarter. Glaxo said

that it would reapply for its patent on Advair, to increase its

protection against generic competition.

The group reaffirmed its expectation that this year's earnings will

be roughly in line with last year's, and Mr Garnier said he hoped

for a return to growth in 2005. The shares closed up 17p at

£10.88.

GSK has repeatedly been criticised for failing to plug the revenue

gaps caused by the expiry of patents on its blockbuster drugs by

inventing new products.

Finance director Coombe admitted yesterday that the progress

towards filling out its pipeline of drugs in development

was " painfully and frustratingly slow " .

[Guest guest]

ROFL

http://www.guardian.co.uk/business/story/0,,1270512,00.html

GSK feels chronic pain from lawyers' fees, says Garnier

Wednesday July 28, 2004

The Guardian

GlaxoKline chief executive Jean-Pierre Garnier railed against

the " chronic pain " of paying lawyers to fight off " legal attacks " on

the pharmaceuticals industry yesterday.

As he sought to shrug off a 13% decline in second quarter pre-tax

profits to £1.6bn at the British drugs group, Mr Garnier pointed

to

the rising price of legal actions for adding to its costs. He is

fighting legal battles on several fronts, including against the high-

profile New York state attorney-general Eliot Spitzer, who has

accused the firm of failing to warn doctors about the effects of its

anti-depressant, Seroxat, on children.

In South Africa, Aids campaigners are seeking to have Glaxo's drugs

pricing practices ruled anti-com petitive, and in the US it is

contesting a £2.7bn bill for alleged under-payment of taxes. Glaxo

has £1bn put aside to cover all its potential legal liabilities.

" There is going to be money that, instead of getting diverted to

research and development, will go in the pockets of the plaintiff

lawyers, " Mr Garnier said.

His remarks to investors came as they digested news that Glaxo's

turnover was 6% down in the first six months of the year, with pre-

tax profits down 9% on a reported basis.

Sales of Seroxat and its other top-selling anti- depressant

Wellbutrin have collapsed in the face of competition from cut-price

generic copies, and the continuing decline in the dollar has

exacerbated the decline in turnover. Wellbutrin sales were more than

40% lower in the second quarter than the same period a year ago.

Levitra, the erectile dysfunction drug which GSK launched last year

with a high-profile advertising campaign in the US, has performed

much less strongly than hoped, with £9m sales in the second

quarter.

However, the asthma drug Advair, which GSK is relying on to help

offset the decline in revenue from Seroxat and Wellbutrin, clocked

up better than expected 22% growth in the second quarter. Glaxo said

that it would reapply for its patent on Advair, to increase its

protection against generic competition.

The group reaffirmed its expectation that this year's earnings will

be roughly in line with last year's, and Mr Garnier said he hoped

for a return to growth in 2005. The shares closed up 17p at

£10.88.

GSK has repeatedly been criticised for failing to plug the revenue

gaps caused by the expiry of patents on its blockbuster drugs by

inventing new products.

Finance director Coombe admitted yesterday that the progress

towards filling out its pipeline of drugs in development

was " painfully and frustratingly slow " .