=GlaxoSmithKline (GSK) reported earnings on Wed 25 Apr 2018 (b/o)

GlaxoSmithKline beats by GBP 0.01, misses on revs; reaffirms FY18 EPS assuming no generic Advair introduction 

• Reports Q1 (Mar) earnings of GBP0.25 per share, GBP0.01 better thanthe Capital IQ Consensus of GBP0.24; revenues fell 2.2% year/year to GBP7.22 bln vs the GBP7.32 bln Capital IQ Consensus, with CER growth delivered by all three businesses.
• The Group expects to make continued progress in 2018, although the expectation for Adjusted EPS growth is impacted by a number of factors including, in particular, uncertainties relating to the timing and extent of potential generic competition to Advair in the US. In the event that no substitutable generic competitor to Advair is introduced to the US market in 2018, the Group continues to expect 2018 Adjusted EPS growth of 4 to 7% at CER. In the first quarter, the Group has made continued progress, with encouraging performances from new launches, Shingrix, Trelegy and Juluca and other new products, as well as agreeing the buyout of Novartis' shareholding in the Consumer Healthcare Joint Venture, subject to shareholder approval. However, the Group has also seen increased pricing and competitive pressures in the US inhaled respiratory market in the first quarter, and GSK now expects a decline in 2018 US Advair sales of around 30% at CER. In the event of a mid-year introduction of a substitutable generic competitor to Advair in the US, the Group expects full year 2018 US Advair sales of around 750 million at CER (US$1.30/1), with Adjusted EPS flat to down 3% at CER.