GlaxoSmithKline plc Provides Ordinary Dividend Guidance for the Years 2015, 2016 and 2017; Announces Special Dividend for the Year 2015; Announces Second Interim Dividend for the Year 2015, Payable on October 1, 2015; Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Reports Intangible Asset Impairments for the Second Quarter Ended June 30, 2015; Provides Earnings Guidance for the Years 2015 and 2016
Jul 29 15
GlaxoSmithKline plc expects to pay an annual ordinary dividend of 80 pence for each of the next three years (2015-2017).
The company also plans to return approximately £1 billion (20 pence per share) to shareholders through a special dividend to be paid alongside the company's fourth quarter of 2015 ordinary dividend payment.
The board has declared a second interim dividend of 19 pence per share. The equivalent interim dividend receivable by ADR holders will be calculated based on the exchange rate on 29 September 2015. An annual fee of $0.02 per ADS (or $0.005 per ADS per quarter) will be charged by the Depositary. The ex-dividend date will be 13 August 2015 (12 August 2015 for ADR holders), with a record date of 14 August 2015 and a payment date of 1 October 2015.
The company reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, turnover was £5,888 million against £5,561 million a year ago. Operating profit was £355 million against £1,137 million a year ago. Profit before taxation was £152 million against £986 million a year ago. Profit attributable to shareholders was £149 million against £654 million a year ago. Diluted earnings per share were 3.1 pence against 13.4 pence a year ago. Core operating profit was £1,349 million against £1,407 million a year ago. Core profit before taxation was £1,349 million against £1,259 million a year ago. Core profit attributable to shareholders was £837 million against £921 million a year ago. Core earnings per share were 17.3 pence against 19.1 pence a year ago. The company posted slumping quarterly earnings, hit partly by lower profit margins for vaccines acquired under an asset swap deal with Swiss peer Novartis. Net cash inflow from operations for the quarter was GBP 219 million, excluding GBP 74 million of legal settlements.
For six months, turnover was £11,510 million against £11,174 million a year ago. Operating profit was £9,551 million against £2,203 million a year ago. Profit before taxation was £10,075 million against £1,889 million a year ago. Profit attributable to shareholders was £8,238 million against £1,322 million a year ago. Diluted earnings per share were 169.2 pence against 27.1 pence a year ago. Net cash inflow from operating activities was £587 million against £1,693 million a year ago. Purchase of property, plant and equipment was £515 million against £473 million a year ago. Purchase of intangible assets was £265 million against £270 million a year ago. Net debt at June 30, 2015 was £9,553 million against £14,423 million as at June 30, 2014. Core operating profit was £2,654 million against £2,937 million a year ago. Core profit before taxation was £2,325 million against £2,629 million a year ago. Core profit attributable to shareholders was £1,671 million against £1,928 million a year ago. Core earnings per share were 34.6 pence against 40.1 pence a year ago. Total EPS was 170.7 pence, compared with 27.5 pence in the first half 2014, the increase primarily reflecting the profits on disposal of the Oncology business and the Aspen Pharmacare shares, partly offset by the increase in the liability for the contingent consideration for the acquisition of the former Shionogi-ViiV Healthcare joint venture and increased major restructuring expenditure.
Core EPS for 2015 is expected to decline at a percentage rate in the high teens (CER) primarily due to continued pricing pressure on Seretide/Advair in US/Europe, the dilutive effect of the Novartis transaction and the inherited cost base of the Novartis businesses. If exchange rates were to hold at the second quarter of 2015 period-end rates for the rest of 2015, the estimated adverse impact on 2015 Sterling turnover would be around 2%, and if there were no further exchange gains or losses, the estimated adverse impact on 2015 Sterling core EPS would be around 6%. The core tax rate for the full year is also expected to be around 20%.
In 2016, the company expects to see a significant recovery in core EPS with percentage growth expected to reach double digits on a CER basis as the adverse impacts seen in 2015 diminish and the sales and synergy benefits of the Novartis transaction contribute more meaningfully.
For the quarter ended June 30, 2015, the company reported intangible asset impairments of £2 million against £1 million a year ago.
GlaxoSmithKline's Malaria Vaccine Containing Agenus' QS-21 Stimulon Receives Positive Opinion from European Regulators for Prevention of Malaria in Young Children in Sub-Saharan Africa
Jul 24 15
Agenus Inc. announced that GlaxoSmithKline received a positive opinion for its Malaria vaccine candidate from the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA). The vaccine candidate, named Mosquirix (RTS,S) is the first QS-21 Stimulon containing product to receive a positive regulatory decision. Agenus' adjuvant QS-21 is designed to increase immune response to antigens in vaccines. The positive opinion signals that Mosquirix meets the necessary quality, safety and efficacy requirements according to EU standards. The CHMP scientific opinion is a key step in the regulatory process toward making a vaccine against Malaria available. The positive opinion follows review by the CHMP of the candidate vaccine's safety, efficacy and quality. Clinical data supporting the filing were mainly from a Phase 3 clinical program involving more than 16,000 infants and young children. Following the CHMP positive opinion, two of the World Health Organization's (WHO) independent advisory groups, the Strategic Advisory Group of Experts (SAGE) on Immunization and the Malaria Policy Advisory Committee (MPAC), will now jointly review the evidence base for the vaccine candidate and make a joint policy recommendation for how the vaccine should be used in the event that it ultimately is approved by the national regulatory authorities in the sub-Saharan African countries for which the vaccine is intended. The WHO has indicated that such a policy recommendation may be possible by end of this year.