GlaxoSmithKline reveal drop in UK sales

The largest pharmaceutical company in the country is GlaxoSmithKline and they have recently said that their sales in the country of decline significantly, and this is largely due to the austerity that people are feeling in the UK. They just made the announcement that their sales have fallen by four percent this year to around £6.5 billion, for the first three months.

The UK is not the only country that has seen decline in the number of drug sales and it has been seen that drug sales are falling all across Europe. One of the reasons for the fall in profits is because governments are simply paying less for drugs than they were before. It is estimated that sales volumes at the company have declined by around one percent in the first quarter.

The company initially thought that during the first part of the year their profits would increase however this seems not to be the case. The chief executive of the company, Sir Andrew Witty has recently commented, “Of course, we are rather disappointed with the sales figures. However I really do think that this is simply a delay of the effects of the recession and that once the economy recovers, so will our sales.

“I understand that the European economy is facing a great deal of trouble at the moment and we are just going to weather the storm.” Since 2009 the shares in the company have been rising steadily and many people believe this is because of the Chief Executive’s move of the company away from Western markets and white pills towards emerging markets and a focus on consumer healthcare.

Sir Andrew also commented that there are new drugs in development right now that’s could be potentially launched over the next 24 months and significantly boost the company’s profit figures.