Glaxo Wellcome Plc is "firing on all cylinders" as its merger with Smith-kline Beecham nears, according to Sir Richard Sykes (executive chairman, Glaxo Wellcome).
Speaking at the company's half-year results meeting in London on July 27, Sir Richard said the current strength of the business was the result of investment in its marketing divisions. Glaxo Wellcome had sold some assets it held and used the money to boost its sales and marketing teams, especially in the United States.
The company reported that sales for the six months to June 30 had risen 12 per cent to £4.6bn while pre-tax profits increased by 20 per cent to £1.6bn. Merger costs were £49m in the half-year. Sales in the US were £2bn or 44 per cent of the total.
Mr Robert Ingram (chief executive, Glaxo Wellcome) pointed out that sales of respiratory, antiviral and central nervous system products had all risen by around 17 per cent. Between them, the three categories accounted for two-thirds of sales.
Sir Richard described respiratory products, now the company's biggest area, as a "sleeper" category. Asthma had never been well treated in the US, he said. Sales of flu-ticasone (Flixotide/Flovent) were up 55 per cent in the US on the same period last year and the combined fluticasone/salmeterol (Seretide/Advair) inhaler was about to be launched.
Merger approval Shareholders of Glaxo Wellcome Plc and Smithkline Beecham Plc approved the creation of Glaxo Smithkline at separate meetings in London on July 31. The new company would have made profits of £2.6bn on sales of £8.6bn in the first half of 2000 if the merger had been completed on January 1, the two companies said.