GlaxoSmithKline Hurt by Generics

Generic competition continues to hurt profit and sales at GlaxoSmithKline (GSK Quote), which saw second-quarter income drop 13% year over year as sales of its blockbuster antidepressants posted double-digit percentage declines.

GlaxoSmithKline, which releases results in British pounds, announced second-quarter net income came in at 1.63 billion pounds, or 20.1 pence, which is equivalent to $3 billion U.S., or 36 cents a share. But slumping sales of Paxil and Wellbutrin lowered results by 13% from the year-ago quarter. (During the quarter, the company said 1 British pound was worth $1.81 U.S., on average.)

The drugmaker said that revenue came in at 5.1 billion pounds, or $9.2 billion, which is down 6% year over year with generic competition eating into sales of both antidepressants. In premarket action, shares of Glaxo rose 69 cents, or 1.7%, to $40.50. ...