Note: All changes are versus the prior-year period unless otherwise stated
"The fundamentals of [our] business remain strong," remarked CEO Emma Walmsley, adding "as expected, our performance this quarter was disrupted by COVID-19, particularly in our vaccines business, as visits to healthcare professionals were limited due to lockdown measures."
GlaxoSmithKline said COVID-19-related customer stock-building in the first quarter, mostly in Europe and the US, have since "broadly reversed, with only a minor [Tivicay] impact in Europe and the US remaining." The company noted that the second quarter also saw lower levels of new patient prescriptions in both regions, as well as reduced market demand for allergy and antibiotic products in international markets and pressure on net prices in the US.
Meanwhile, GlaxoSmithKline explained that its profit for the quarter was helped by booking £1.6 billion ($2.1 billion) in other operating income, compared to expenses of £63 million ($82 million) in the year-ago period.
GlaxoSmithKline continues to expect adjusted earnings per share this year to decline in the range of 1% to 4% at constant exchange rates. The company noted that its guidance "is dependent in particular on timing of a recovery in vaccination rates, particularly in the US, which we anticipate in the third quarter." However, it warned that if there was "a delay in this recovery, we could see a significant impact in 2020," with a delay of three months expected to hit adjusted earnings per share by 5 percentage points.
Still, Walmsley indicated that the company has been seeing "good underlying demand for our major products," and it is "confident this will be reflected in future performance when the impact of COVID-19 measures eases."
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