April 23rd, 2009

GlaxoSmithKline says generic drug sales are hurting profits. The Philadelphia Inquirer reports:

Competition from generic drugs ate into profits at GlaxoSmithKline P.L.C., sending its first-quarter net income down 13 percent from a year earlier, the London company said yesterday.

GlaxoSmithKline, which employs 4,500 people in the Philadelphia region, said revenue rose 19 percent to 6.7 billion British pounds ($9.7 billion) in the first three months of 2009, despite a 22 percent decline in U.S. sales. Outside the United States, pharmaceuticals sales grew 7 percent to 3.3 billion pounds ($4.8 billion).

“In the USA, we are experiencing some of our toughest performance challenges as our product portfolio transitions and we reshape our business,” chief executive officer Andrew Witty said in a written statement.

Much of the gain in sales measured in pounds occurred because of currency fluctuations. Measured in what the company calls a constant exchange rate, sales fell 5 percent.

 Read the full story from The Inquirer here.