LONDON GlaxoSmithKline’s second quarter was weak on reports that the company’s net income fell by 3 percent from $2.65 billion last year to $2.57 billion, according to The Wall Street Journal. The loss was due to competition from low-cost generic drugs and sluggish sales of its diabetes pill Avandia and asthma inhaler Advair. Sales though rose 4 percent to $11.68 billion from $11.28 billion.
In an attempt to try to boost sales in emerging markets, the company signed an alliance with South Africa’s Aspen Pharmacare Holdings that will allow it to sell Aspen’s low-cost medicines in countries where Aspen doesn’t currently operate.
Aspen manufactures more than 450 inexpensive, unpatented drugs and sells them in Africa and a few other markets. GSK will start selling some of these products in new markets and will share profit with Aspen, the company said. It will make “limited” upfront payments to Aspen, though it didn’t disclose terms of the deal. Aspen produces a variety of HIV medicines, antidepressants and antibiotics, among other drugs.
GSK is also dropping its research into disorders of the gastrointestinal, urinary and reproductive systems because it doesn’t feel it can make much progress in these areas.