Glaxo Profits Reflect Strong Sterling

Generic-drug competition played a key role in flat earnings and slipping sales during the first quarter for GlaxoSmithKline(GSK Quote).

The British drug giant said Wednesday that first-quarter operating profit was flat vs. the year-ago quarter; net earnings per share rose 2%; and revenue declined 4% when measured in British pounds sterling.

However, when measured in constant exchange rates, GlaxoSmithKline said operating profit rose 11%, net earnings per share gained 14% and revenue gained 4%. The weak U.S. dollar had a significant impact. One British pound was worth $1.96 during the quarter, up from $1.75 in the year-ago quarter; the pound also advanced vs. the Japanese yen and the euro. ...