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| The firm is expecting it's core earning to be "broadly similar to 2013". |
GlaxoSmithKline's shares rose 4% after its third-quarter results slides it's way beyond expectation and announces to return an additional £4billion to shareholders by a special share scheme. GSK is one of the world's biggest drug manufacturer and now it is on rise. The UK pharmaceuticals giant published a pre-tax profit of £548m till the end of September for three months. It is way more below than £1.4 billion a year ago. Even then,the results beat analyst forecasts.
Richard Hunter from Hargreaves Lansdown,said the results can be "a turning point". Hargreaves Lansdown plc is a financial service company based in Bristol that sells funds and shares and related products via its website and through the post to retail investors in the United Kingdom.He added,"The drive towards containing costs is also in evidence, whilst the company anticipates significant savings as a result of the restructure. In the medium to long term, Glaxo is also predicting a potentially lucrative pipeline, which should underpin prospects."
GlaxoSmithKline's shares have fallen by 14% over the past three months. It has been accused of allegations of bribery in China and it is even obliged to pay a fine of nearly $500m. GSK's US business was down due to price issues on it's key asthma drug Advair. There is even impact due to high strength of pound.
Now, the manufacturer is up with cost saving strategy. GSK is targeting £1bn of annual cost savings over the next three years and it's "refocusing" the business. It also said it would consider a possible flotation of ViiV Healthcare. It is a division focusing on treatment for HIV.
The firm is expecting it's core earning to be "broadly similar to 2013".
Andrew Witty, Chief executive of GSK said,"We have continued to make strategic choices to create value from assets held in the group and to respond to the pressures we are facing in our operating environment."
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