The group posted underlying pre-tax profits of £1.88bn for the three months to the end of September, excluding restructuring costs, although the results were better than markets had been expecting.
GSK said cheaper competition was having a significant impact on pharmaceutical sales, down four per cent in the quarter, on a constant currency basis, to £4.89bn.
Its under-fire Avandia diabetes treatment - which has been rocked by allegations that the drug increases the risk of heart attack - continued to suffer, with sales down another 23 per cent, and GSK said the outlook `remained negative'. But the weaker pound helped boost total sales, ahead by seven per cent to £5.88bn.
GSK said it was also so far seeing only modest effects of the economic slowdown on consumer product sales.
However, recently appointed boss Andrew Witty said the group needed to `monitor closely the impact that changes in the global economy will have', cautioning that countries may start to put healthcare spend under review.
The largest sales decline was seen in America, where turnover plunged 13 per cent to £2.1bn, due to the impact of generic competition on some of its older treatments.
Hypertension treatment Coreg and depression drug Wellbutrin were hit hard.
Mr Witty said he was overseeing a `considerable transition' to the product portfolio as GSK looks to mitigate the impact of generic competition.
The group is focusing on growth areas, such as vaccines, emerging markets and consumer healthcare.
Vaccines were some of the strongest performers, and GSK was also continuing to see strong growth for other treatments, such as asthma drug Advair, which grew sales by seven per cent to £982m worldwide.
GSK is cutting costs throughout the business, as part of a group-wide overhaul launched a year ago. It said it was on track to save at least £350m this year and £700m a year by 2010.
Tweet
