GSK says slumps into red in second quarter

21st July 2010, Comments 0 comments

British pharmaceuticals firm GlaxoSmithKline said on Wednesday it sank into the red in the second quarter, hit by restructuring costs, generic drugs competition and legal charges for litigation costs.

GSK said in a results statement that it slumped to a net loss of 304 million pounds in the three months to the end of June. That contrasted with net profit of 1.461 billion pounds in the same portion of last year.

Net earnings, before restructuring, tumbled to 130 million pounds, compared with 1.57 billion last time around.

The group added that turnover grew four percent to 7.02 billion pounds in the reporting period.

GSK had announced last week that it would take a charge of 1.57 billion pounds in the second quarter to cover costs of settling legal disputes involving antidepressant Paxil, its diabetes drug Avandia, and a US government investigation of a Glaxo factory in Puerto Rico.

- Dow Jones Newswires contributed to this report -

© 2010 AFP

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