Pharmaceutical giant GlaxoSmithKline (GSK) returned to profit in the second quarter of this year after losses during the same period last year, the company has announced.
GSK made £614 million before tax, against a pre-tax loss of £178 million in the second quarter of 2017.
Earnings per share rose to 9p, against a loss per share of 3.7p per share past time. There will be a GSK stock dividend pay-out of 19p per share for the quarter and GSK expects the total dividend for the year to be 80p a share, unchanged from 2017.
Long-term strategic priorities
Shares initially rose after the GSK news but were down 45.8p, or 2.97%, in late morning trading in London at 1,496.6p.
But she announced a restructuring of the company designed to cut £400 million out of its annual cost base in order to release resources for research and development to allow GSK to capitalise on healthcare industry trends. “Innovation is the first of our three long-term strategic priorities I set out for GSK last year.”
“Improving the performance of our pharmaceuticals business and strengthening our R&D pipeline is fundamental to this. Today, we have announced the start of a new approach to R&D which aims to capitalise on the assets we have in our promising early-stage pipeline and build the next wave of growth for GSK.”