Pharmaceutical colossus GlaxoSmithKline (GSK) has fallen 0.9% to £15.84 as sales of its asthma treatments Advair/Seretide dropped in the US in the first quarter of 2017.
Advair is a prescription medicine to treat asthma and Seretide is an accuhaler, a breath-activated device.
Investors have overlooked the company beating analysts’ expectations of £7.25bn in turnover, as it delivers a 19% jump in revenues to approximately £7.38bn.
The market is concerned about how GSK will deliver further sales as revenues for the medicines declined 12% to £752m as a result of lower volumes and a negative impact of pricing.
In Europe, Seretide sales were down 9% over the same period as constant competition from generics hit revenues and GSK transitioned to newer products in its respiratory portfolio.
GSK says its 17% growth in pharmaceutical revenue was supported by its drugs Triumeq and Tivicay to treat human immunodeficiency virus (HIV).
The encouraging sales should reassure investors as Advair faces competition from rivals Mylan and Hikma (HIK) who are developing generic versions of GSK’s asthma treatment.
In March, GSK was handed a short-term boost for Advair after the US Food and Drug Administration blocked the launch of Mylan’s Wixela Inhub in its current form.
