Investors will be looking for details on how drug giant GlaxoSmithKline’s (GSK) pipeline is developing in Wednesday’s (22 Oct) interims. Some of the drug-maker’s products have been hit by competition in recent years and following July’s profit warning replacing lost revenues is high on the agenda.
Glaxo, it’s been caught up in a bribery scandal in China, for which it was found guilty following an investigation in September, for paying doctors to prescribe its medicines. Being handed a £297 million fine may seem big but not when you consider the group’s immense £7 billion-plus operating profits in 2013.
But the bigger picture remains one of shifting sands as Glaxo is increasingly unable to bank on the blockbuster drugs cash cow that they once could. This creates vulnerabilities as existing patents expire.
An update on further restructuring at the group will be interesting to look out for and hints on how the group is altering its sales practices would be welcomed.