GlaxoSmithKline (NYSE:GSK) suffered a net loss of £428 million or a loss of 7.3 pence a share in the fourth quarter. By comparison, the company earned a profit of £1.03 billion or 21.5 pence a share in the same quarter last year. The British firm blamed the loss on integration costs of new businesses.
Revenue Rises Modestly
GlaxoSmithKline delivered 4% growth in its turnover to £6.286 billion up from £6.186 billion last year. However, gross profit dipped 7% to £3.745 billion from £4.157 billion during the same period. While R&D expenses grew 9% to £1.05 billion from £979 million, selling, general and administrative expenses increased 15% to £2.498 billion from £2.207 billion.
Glaxo has been under pressure as it has faced increasing competition from generic drug manufacturers. Its focus has been on its strengths in the fourth quarter. Also, results came a day after the company announced its collaboration expansion with Adaptimmune Therapeutics. The objective was to lift its position in the market of oncology. The alliance would fuel Adaptimmune powered T-cell receptor therapy for cancer treatment.
Outlook For 2016
Glaxo further said that it continued to see earnings percentage reaching double-digit growth on a constant currency basis. However, it indicated that it was fully aware of the macro-economic, as well as healthcare environment, which would remain challenging. Therefore, it said it would focus on enhancing commercial execution and realizing the gains of its restructuring and integration program.
Glaxo also expects considerable options for its new R&D portfolio of more than 40 assets. The company believes that 80% of them have the potential to be rated as first in class. The British drug company expects development milestones for assets like Daprodustat, Cabotegravir, Sirukumab, and Shingrix. It indicated that it would pay a dividend of 80 pence a share for the current year, as well as next year.