GSK Quarterly Profit Fell on Paxil, Dollar!!!

[Guest guest]

From Bloomberg Financial

http://www.bloomberg.com/index.html

Glaxo's Garnier May Say Quarterly Profit Fell on Paxil, Dollar

Oct. 27 (Bloomberg) -- GlaxoKline, Europe's biggest drugmaker, may

report a fourth consecutive drop in quarterly earnings tomorrow, hurt by

generic competition to its best-selling antidepressants Paxil and Wellbutrin

and a declining U.S. dollar.

Third-quarter net income probably fell to 1.06 billion pounds ($1.95

billion), or 18.7 pence a share, from 1.17 billion pounds, or 20.1 pence, a

year earlier, according to the median estimate of 10 analysts surveyed by

Bloomberg News. Sales at the Brentford, England-based company probably fell

6 percent, the survey showed.

Glaxo Chief Executive Jean-Pierre Garnier on July 27 in a Bloomberg

interview said growth will resume in the fourth quarter, as the effect of

generic competition subsides. Sales for Paxil, which reached $3.5 billion

and accounted for 10 percent of drug revenue in 2003, may slide almost 50

percent by year's end, according to a Sept. 30 investment report by Deutsche

Bank AG analyst Mark and colleagues in London.

``We know results will be poor this year, we need to know how much they can

recover next year,'' said Jane Coffey, head of equities for Royal London

Asset Management, which oversees about $40 billion, including shares in

Glaxo. ``The growth is not going to be impressive in the next three or four

years.''

Glaxo shares have dropped 12 percent this year, making them the fourth-worst

performer on the 20-member Bloomberg Europe Pharmaceutical Index, beating

only U.K. rival AstraZeneca Plc and Swiss drugmakers Serono SA and Actelion

Ltd. Since last year, the company has bought back 1.5 billion pounds worth

of its shares to bolster returns.

Generic Threats

Between 2002 and 2007, pharmaceutical companies including Glaxo and

London-based AstraZeneca will have lost patent protection on products worth

an annual $82 billion in sales, according to London-based industry

consultant Datamonitor Plc.

Glaxo's revenue probably fell to 5.14 billion pounds from 5.47 billion

pounds in the third quarter, with the declining dollar reducing sales by 8

percent to 9 percent, said London-based Citigroup Inc. analyst

and colleagues in an Oct. 12 investment report.

The average value of the dollar was 13 percent lower in the third quarter

compared with a year earlier. Earnings may be reduced by as much as 10

percent this year if the dollar remains around 1.82 pounds, Glaxo Chief

Financial Officer Coombe said in July. The company gets more than half

of its sales in the U.S., the world's largest pharmaceuticals market.

Garnier, 56, who was paid 2.79 million pounds last year, declined to comment

through spokesman Mawdsley.

``The company has tried to protect itself from the worst ravages of patent

expiries,'' said London-based Code Securities analyst Mike Ward, who

estimates 9 percent growth for Glaxo next year. ``The effects of patent

expiries are washing through the numbers and things are getting better as we

go into 2005.''

Advair, Avandia

Glaxo is relying on marketing established products such as the Advair asthma

treatment, which had 2.2 billion in sales last year, and the Avandia

diabetes drug, to increase revenue.

The company, formed from the $70 billion merger of Glaxo Wellcome Plc and

Kline Beecham Plc in 2000, is promoting a study that shows Advair can

help keep patients free of asthma symptoms for seven weeks with sustained

use of the medicine.

The company is also trying to persuade doctors to prescribe the medication

for use in children and patients with bronchitis and emphysema, uses that

won U.S. approval earlier this year. Glaxo has the world's second-biggest

sales force with 30,000 marketing people to promote its products.

``At least they have Advair, which is a big drug and should give them a

boost,'' said Morten Herholdt, who helps manage $42 billion for Barclays

Private Clients in London. ``The problem to a large degree is they are a

one-product company.''

Glaxo, the world's biggest maker of AIDS treatments, also added to its

portfolio of HIV medicines after winning U.S. approval in August of Epzicom.

The new HIV medicine combines its Epizir and Ziagen AIDS drugs in a

once-daily pill, making treatment more convenient for patients.

R & D Meeting

Glaxo will present details on experimental products to treat pain,

depression and other central nervous system disorders at a Nov. 23 meeting.

Glaxo will also present data for the first time on the experimental 353162,

a successor to Wellbutrin, and an experimental pain medicine, 406381,

Garnier said in July.

Investors may have questions about safety of Glaxo's experimental 406381

painkiller, a dual -2 inhibitor, because it's in the same class as Merck

& Co.'s Vioxx, which was pulled from the market because of safety risks,

analysts said.

``The dual -2 inhibitor has a greater risk profile now,'' said Gbola

Amusa, an analyst at Sanford C. Bernstein & Co. in London. ``If the R & D day

is positive, they will have a lot of messages to give to the market for

2005.''

Of 148 projects in human testing, the company has 22 experimental medicines

with sales potential of $1 billion each, Garnier said at last year's

research and development meeting.

Garnier said in July that he expects to introduce new drugs this year for

bladder control and diabetes to help reverse declining profit. The company

will update investors on these products during aconference call, Glaxo's

Mawdsley said.

To contact the reporter on this story:

Zimm in London at at azimm@...

To contact the editor of this story:

Mark Rohner at mrohner@...

Last Updated: October 26, 2004 19:05 EDT

[Guest guest]

From Bloomberg Financial

http://www.bloomberg.com/index.html

Glaxo's Garnier May Say Quarterly Profit Fell on Paxil, Dollar

Oct. 27 (Bloomberg) -- GlaxoKline, Europe's biggest drugmaker, may

report a fourth consecutive drop in quarterly earnings tomorrow, hurt by

generic competition to its best-selling antidepressants Paxil and Wellbutrin

and a declining U.S. dollar.

Third-quarter net income probably fell to 1.06 billion pounds ($1.95

billion), or 18.7 pence a share, from 1.17 billion pounds, or 20.1 pence, a

year earlier, according to the median estimate of 10 analysts surveyed by

Bloomberg News. Sales at the Brentford, England-based company probably fell

6 percent, the survey showed.

Glaxo Chief Executive Jean-Pierre Garnier on July 27 in a Bloomberg

interview said growth will resume in the fourth quarter, as the effect of

generic competition subsides. Sales for Paxil, which reached $3.5 billion

and accounted for 10 percent of drug revenue in 2003, may slide almost 50

percent by year's end, according to a Sept. 30 investment report by Deutsche

Bank AG analyst Mark and colleagues in London.

``We know results will be poor this year, we need to know how much they can

recover next year,'' said Jane Coffey, head of equities for Royal London

Asset Management, which oversees about $40 billion, including shares in

Glaxo. ``The growth is not going to be impressive in the next three or four

years.''

Glaxo shares have dropped 12 percent this year, making them the fourth-worst

performer on the 20-member Bloomberg Europe Pharmaceutical Index, beating

only U.K. rival AstraZeneca Plc and Swiss drugmakers Serono SA and Actelion

Ltd. Since last year, the company has bought back 1.5 billion pounds worth

of its shares to bolster returns.

Generic Threats

Between 2002 and 2007, pharmaceutical companies including Glaxo and

London-based AstraZeneca will have lost patent protection on products worth

an annual $82 billion in sales, according to London-based industry

consultant Datamonitor Plc.

Glaxo's revenue probably fell to 5.14 billion pounds from 5.47 billion

pounds in the third quarter, with the declining dollar reducing sales by 8

percent to 9 percent, said London-based Citigroup Inc. analyst

and colleagues in an Oct. 12 investment report.

The average value of the dollar was 13 percent lower in the third quarter

compared with a year earlier. Earnings may be reduced by as much as 10

percent this year if the dollar remains around 1.82 pounds, Glaxo Chief

Financial Officer Coombe said in July. The company gets more than half

of its sales in the U.S., the world's largest pharmaceuticals market.

Garnier, 56, who was paid 2.79 million pounds last year, declined to comment

through spokesman Mawdsley.

``The company has tried to protect itself from the worst ravages of patent

expiries,'' said London-based Code Securities analyst Mike Ward, who

estimates 9 percent growth for Glaxo next year. ``The effects of patent

expiries are washing through the numbers and things are getting better as we

go into 2005.''

Advair, Avandia

Glaxo is relying on marketing established products such as the Advair asthma

treatment, which had 2.2 billion in sales last year, and the Avandia

diabetes drug, to increase revenue.

The company, formed from the $70 billion merger of Glaxo Wellcome Plc and

Kline Beecham Plc in 2000, is promoting a study that shows Advair can

help keep patients free of asthma symptoms for seven weeks with sustained

use of the medicine.

The company is also trying to persuade doctors to prescribe the medication

for use in children and patients with bronchitis and emphysema, uses that

won U.S. approval earlier this year. Glaxo has the world's second-biggest

sales force with 30,000 marketing people to promote its products.

``At least they have Advair, which is a big drug and should give them a

boost,'' said Morten Herholdt, who helps manage $42 billion for Barclays

Private Clients in London. ``The problem to a large degree is they are a

one-product company.''

Glaxo, the world's biggest maker of AIDS treatments, also added to its

portfolio of HIV medicines after winning U.S. approval in August of Epzicom.

The new HIV medicine combines its Epizir and Ziagen AIDS drugs in a

once-daily pill, making treatment more convenient for patients.

R & D Meeting

Glaxo will present details on experimental products to treat pain,

depression and other central nervous system disorders at a Nov. 23 meeting.

Glaxo will also present data for the first time on the experimental 353162,

a successor to Wellbutrin, and an experimental pain medicine, 406381,

Garnier said in July.

Investors may have questions about safety of Glaxo's experimental 406381

painkiller, a dual -2 inhibitor, because it's in the same class as Merck

& Co.'s Vioxx, which was pulled from the market because of safety risks,

analysts said.

``The dual -2 inhibitor has a greater risk profile now,'' said Gbola

Amusa, an analyst at Sanford C. Bernstein & Co. in London. ``If the R & D day

is positive, they will have a lot of messages to give to the market for

2005.''

Of 148 projects in human testing, the company has 22 experimental medicines

with sales potential of $1 billion each, Garnier said at last year's

research and development meeting.

Garnier said in July that he expects to introduce new drugs this year for

bladder control and diabetes to help reverse declining profit. The company

will update investors on these products during aconference call, Glaxo's

Mawdsley said.

To contact the reporter on this story:

Zimm in London at at azimm@...

To contact the editor of this story:

Mark Rohner at mrohner@...

Last Updated: October 26, 2004 19:05 EDT

[Guest guest]

From Bloomberg Financial

http://www.bloomberg.com/index.html

Glaxo's Garnier May Say Quarterly Profit Fell on Paxil, Dollar

Oct. 27 (Bloomberg) -- GlaxoKline, Europe's biggest drugmaker, may

report a fourth consecutive drop in quarterly earnings tomorrow, hurt by

generic competition to its best-selling antidepressants Paxil and Wellbutrin

and a declining U.S. dollar.

Third-quarter net income probably fell to 1.06 billion pounds ($1.95

billion), or 18.7 pence a share, from 1.17 billion pounds, or 20.1 pence, a

year earlier, according to the median estimate of 10 analysts surveyed by

Bloomberg News. Sales at the Brentford, England-based company probably fell

6 percent, the survey showed.

Glaxo Chief Executive Jean-Pierre Garnier on July 27 in a Bloomberg

interview said growth will resume in the fourth quarter, as the effect of

generic competition subsides. Sales for Paxil, which reached $3.5 billion

and accounted for 10 percent of drug revenue in 2003, may slide almost 50

percent by year's end, according to a Sept. 30 investment report by Deutsche

Bank AG analyst Mark and colleagues in London.

``We know results will be poor this year, we need to know how much they can

recover next year,'' said Jane Coffey, head of equities for Royal London

Asset Management, which oversees about $40 billion, including shares in

Glaxo. ``The growth is not going to be impressive in the next three or four

years.''

Glaxo shares have dropped 12 percent this year, making them the fourth-worst

performer on the 20-member Bloomberg Europe Pharmaceutical Index, beating

only U.K. rival AstraZeneca Plc and Swiss drugmakers Serono SA and Actelion

Ltd. Since last year, the company has bought back 1.5 billion pounds worth

of its shares to bolster returns.

Generic Threats

Between 2002 and 2007, pharmaceutical companies including Glaxo and

London-based AstraZeneca will have lost patent protection on products worth

an annual $82 billion in sales, according to London-based industry

consultant Datamonitor Plc.

Glaxo's revenue probably fell to 5.14 billion pounds from 5.47 billion

pounds in the third quarter, with the declining dollar reducing sales by 8

percent to 9 percent, said London-based Citigroup Inc. analyst

and colleagues in an Oct. 12 investment report.

The average value of the dollar was 13 percent lower in the third quarter

compared with a year earlier. Earnings may be reduced by as much as 10

percent this year if the dollar remains around 1.82 pounds, Glaxo Chief

Financial Officer Coombe said in July. The company gets more than half

of its sales in the U.S., the world's largest pharmaceuticals market.

Garnier, 56, who was paid 2.79 million pounds last year, declined to comment

through spokesman Mawdsley.

``The company has tried to protect itself from the worst ravages of patent

expiries,'' said London-based Code Securities analyst Mike Ward, who

estimates 9 percent growth for Glaxo next year. ``The effects of patent

expiries are washing through the numbers and things are getting better as we

go into 2005.''

Advair, Avandia

Glaxo is relying on marketing established products such as the Advair asthma

treatment, which had 2.2 billion in sales last year, and the Avandia

diabetes drug, to increase revenue.

The company, formed from the $70 billion merger of Glaxo Wellcome Plc and

Kline Beecham Plc in 2000, is promoting a study that shows Advair can

help keep patients free of asthma symptoms for seven weeks with sustained

use of the medicine.

The company is also trying to persuade doctors to prescribe the medication

for use in children and patients with bronchitis and emphysema, uses that

won U.S. approval earlier this year. Glaxo has the world's second-biggest

sales force with 30,000 marketing people to promote its products.

``At least they have Advair, which is a big drug and should give them a

boost,'' said Morten Herholdt, who helps manage $42 billion for Barclays

Private Clients in London. ``The problem to a large degree is they are a

one-product company.''

Glaxo, the world's biggest maker of AIDS treatments, also added to its

portfolio of HIV medicines after winning U.S. approval in August of Epzicom.

The new HIV medicine combines its Epizir and Ziagen AIDS drugs in a

once-daily pill, making treatment more convenient for patients.

R & D Meeting

Glaxo will present details on experimental products to treat pain,

depression and other central nervous system disorders at a Nov. 23 meeting.

Glaxo will also present data for the first time on the experimental 353162,

a successor to Wellbutrin, and an experimental pain medicine, 406381,

Garnier said in July.

Investors may have questions about safety of Glaxo's experimental 406381

painkiller, a dual -2 inhibitor, because it's in the same class as Merck

& Co.'s Vioxx, which was pulled from the market because of safety risks,

analysts said.

``The dual -2 inhibitor has a greater risk profile now,'' said Gbola

Amusa, an analyst at Sanford C. Bernstein & Co. in London. ``If the R & D day

is positive, they will have a lot of messages to give to the market for

2005.''

Of 148 projects in human testing, the company has 22 experimental medicines

with sales potential of $1 billion each, Garnier said at last year's

research and development meeting.

Garnier said in July that he expects to introduce new drugs this year for

bladder control and diabetes to help reverse declining profit. The company

will update investors on these products during aconference call, Glaxo's

Mawdsley said.

To contact the reporter on this story:

Zimm in London at at azimm@...

To contact the editor of this story:

Mark Rohner at mrohner@...

Last Updated: October 26, 2004 19:05 EDT

[Guest guest]

From Bloomberg Financial

http://www.bloomberg.com/index.html

Glaxo's Garnier May Say Quarterly Profit Fell on Paxil, Dollar

Oct. 27 (Bloomberg) -- GlaxoKline, Europe's biggest drugmaker, may

report a fourth consecutive drop in quarterly earnings tomorrow, hurt by

generic competition to its best-selling antidepressants Paxil and Wellbutrin

and a declining U.S. dollar.

Third-quarter net income probably fell to 1.06 billion pounds ($1.95

billion), or 18.7 pence a share, from 1.17 billion pounds, or 20.1 pence, a

year earlier, according to the median estimate of 10 analysts surveyed by

Bloomberg News. Sales at the Brentford, England-based company probably fell

6 percent, the survey showed.

Glaxo Chief Executive Jean-Pierre Garnier on July 27 in a Bloomberg

interview said growth will resume in the fourth quarter, as the effect of

generic competition subsides. Sales for Paxil, which reached $3.5 billion

and accounted for 10 percent of drug revenue in 2003, may slide almost 50

percent by year's end, according to a Sept. 30 investment report by Deutsche

Bank AG analyst Mark and colleagues in London.

``We know results will be poor this year, we need to know how much they can

recover next year,'' said Jane Coffey, head of equities for Royal London

Asset Management, which oversees about $40 billion, including shares in

Glaxo. ``The growth is not going to be impressive in the next three or four

years.''

Glaxo shares have dropped 12 percent this year, making them the fourth-worst

performer on the 20-member Bloomberg Europe Pharmaceutical Index, beating

only U.K. rival AstraZeneca Plc and Swiss drugmakers Serono SA and Actelion

Ltd. Since last year, the company has bought back 1.5 billion pounds worth

of its shares to bolster returns.

Generic Threats

Between 2002 and 2007, pharmaceutical companies including Glaxo and

London-based AstraZeneca will have lost patent protection on products worth

an annual $82 billion in sales, according to London-based industry

consultant Datamonitor Plc.

Glaxo's revenue probably fell to 5.14 billion pounds from 5.47 billion

pounds in the third quarter, with the declining dollar reducing sales by 8

percent to 9 percent, said London-based Citigroup Inc. analyst

and colleagues in an Oct. 12 investment report.

The average value of the dollar was 13 percent lower in the third quarter

compared with a year earlier. Earnings may be reduced by as much as 10

percent this year if the dollar remains around 1.82 pounds, Glaxo Chief

Financial Officer Coombe said in July. The company gets more than half

of its sales in the U.S., the world's largest pharmaceuticals market.

Garnier, 56, who was paid 2.79 million pounds last year, declined to comment

through spokesman Mawdsley.

``The company has tried to protect itself from the worst ravages of patent

expiries,'' said London-based Code Securities analyst Mike Ward, who

estimates 9 percent growth for Glaxo next year. ``The effects of patent

expiries are washing through the numbers and things are getting better as we

go into 2005.''

Advair, Avandia

Glaxo is relying on marketing established products such as the Advair asthma

treatment, which had 2.2 billion in sales last year, and the Avandia

diabetes drug, to increase revenue.

The company, formed from the $70 billion merger of Glaxo Wellcome Plc and

Kline Beecham Plc in 2000, is promoting a study that shows Advair can

help keep patients free of asthma symptoms for seven weeks with sustained

use of the medicine.

The company is also trying to persuade doctors to prescribe the medication

for use in children and patients with bronchitis and emphysema, uses that

won U.S. approval earlier this year. Glaxo has the world's second-biggest

sales force with 30,000 marketing people to promote its products.

``At least they have Advair, which is a big drug and should give them a

boost,'' said Morten Herholdt, who helps manage $42 billion for Barclays

Private Clients in London. ``The problem to a large degree is they are a

one-product company.''

Glaxo, the world's biggest maker of AIDS treatments, also added to its

portfolio of HIV medicines after winning U.S. approval in August of Epzicom.

The new HIV medicine combines its Epizir and Ziagen AIDS drugs in a

once-daily pill, making treatment more convenient for patients.

R & D Meeting

Glaxo will present details on experimental products to treat pain,

depression and other central nervous system disorders at a Nov. 23 meeting.

Glaxo will also present data for the first time on the experimental 353162,

a successor to Wellbutrin, and an experimental pain medicine, 406381,

Garnier said in July.

Investors may have questions about safety of Glaxo's experimental 406381

painkiller, a dual -2 inhibitor, because it's in the same class as Merck

& Co.'s Vioxx, which was pulled from the market because of safety risks,

analysts said.

``The dual -2 inhibitor has a greater risk profile now,'' said Gbola

Amusa, an analyst at Sanford C. Bernstein & Co. in London. ``If the R & D day

is positive, they will have a lot of messages to give to the market for

2005.''

Of 148 projects in human testing, the company has 22 experimental medicines

with sales potential of $1 billion each, Garnier said at last year's

research and development meeting.

Garnier said in July that he expects to introduce new drugs this year for

bladder control and diabetes to help reverse declining profit. The company

will update investors on these products during aconference call, Glaxo's

Mawdsley said.

To contact the reporter on this story:

Zimm in London at at azimm@...

To contact the editor of this story:

Mark Rohner at mrohner@...

Last Updated: October 26, 2004 19:05 EDT