GSK maintains 2013 guidance despite Chinese sales slump
GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) reiterated its 2013 guidance but reported a 61% drop in 3Q13 Chinese sales due to the ongoing investigation in the country of alleged bribery and tax crimes by GSK executives. The pharma reported 3Q13 revenue of L6.5 billion ($10.5 billion), up 1% in constant exchange rates from 3Q12 despite the drop in China. GSK did not break out sales in China. Core EPS in the quarter was 28.9p, up 16% from 3Q12. The pharma said it still expects 2013 core EPS growth of 3-4% and sales growth of around 1% at constant exchange rates.
In July, China's Ministry of Public Security arrested several GSK executives after finding evidence they had bribed government officials, foundations, hospitals and doctors. On a conference call to discuss the pharma's earnings, CEO Andrew Witty said it is "still too early" to quantify the long-term effect of the investigation (see BioCentury Extra, July 11). ...