GlaxoSmithKline (LON:GSK) is expected to report record sales of about £30 billion when it updates investors on its full-year performance tomorrow, The Telegraph has revealed. In a separate development, Bloomberg reports that the British drugmaker and Reckitt Benckiser (LON:RB) are the only companies to have submitted non-binding bids for Pfizer Inc’s consumer healthcare business.
GSK’s share price has fallen into the red in today’s session, having given up 2.44 percent to 1,249.20p as of 13:06 GMT. The drop is largely in line with the ongoing London market selloff which has seen the FTSE 100 index fall 1.98 percent to 7,189.79 points.
GSK to post rise in sales
GSK is scheduled to post its fourth-quarter results tomorrow and The Telegraph reports that the City expects the pharmco to have registered annual sales in 2017 of around £30 billion, or an eight-percent rise on the previous year. The update will mark the group’s first full-year results under Emma Walmsley who took the helm at GSK in April and has since set out her strategy to streamline the company’s pharmaceuticals business.
The newspaper quoted analysts at JP Morgan Cazenove as commenting recently that the FTSE 100 pharmco’s new management team were taking the right steps “to improve the long-term growth outlook”. The broker, however, cautioned that in the near-term fierce competition in the HIV drugs market could eat into sales, while acquisitions could “strain the ability to sustain the current 80p dividend beyond 2018”.
Pfizer consumer unit bid
In a separate development, people with knowledge of the matter told Bloomberg that GSK and Reckitt Benckiser were the only companies to have submitted non-binding bids for Pfizer’s consumer-health business after other potential suitors bowed out. The US pharma giant reportedly plans to open a data room for Glaxo and Reckitt to start due diligence on the assets before submitting final offers in the next few weeks. Earlier this year, Emma Walmsley said that GSK would look at the assets but would not overpay for the business, which comprises a string of over-the-counter treatments, including painkiller Advil.