GlaxoSmithKline gets healthy US lift

THE world's biggest nation of hypochondriacs, America, helped boost pharmaceuticals sales of drugs group GlaxoSmithKline by 15% to £2.6bn in the second quarter to the end of June.

The US now provides 55% of GSK's total business. World sales increased by 9% to £4.6bn during the period even though sales in Europe rose by just 1%. France, Spain and eastern Europe were good markets but the rest of the Continent suffered a series of setbacks. Sales in the rest of the world grew 5% to £888m.

The 6% increase in overall sales - drugs and services - to £5.41bn helped boost second-quarter pre-tax profits by 7% to £1.83bn. The shares today added 13p to 1070p as the results were seen to be in line with expectations.

GSK has now spent £3.7bn on its share buyback programme. It announced plans last year to spend £4bn on buybacks and the purchase of shares to cover share options.

Respiratory drug Seretide/Advair is now GSK's second-best selling product following its US launch in April last year. Its Augementin antibiotic drug, launched in the US, is expected to deliver earnings per share growth of 10% this year and high single-figure growth for 2003 despite copycat versions that will compete with it.

GSK's best-selling drug Paxil/Seroxat, used to treat depressed patients, also faces competition.