The swine flu vaccination made by GlaxoSmithKline saved a lot of lives and was a boon for the entire pharmaceutical industry. Apart from earning goodwill and a high place in the hearts of swine flu patients GlaxoSmithKline managed to earn high profits.
Pharmaceuticals giant GlaxoSmithKline posted soaring profits for the first quarter this was purely because of high sales of H1N1 treatments during last year’s swine flu crisis. GSK’s net profits jumped by18.5% ie by £1.34 billion in the three months to the end of March. These figures were much higher than the first quarter of 2009.
The Turnover this year has jumped to 7.36 billion out of which £698 million came from swine flu vaccination alone. These figures exclude the sales of flu products like masks etc. GSK forecasts another £200m in flu related sales in the remaining nine months of the year as the chances of catching the disease still exist.
The GSK executives feel that they are doing a good job of delivering quality products and that is why their profits are soaring. The group is working on cost saving pharmaceuticals and not compromising on the quality factor. They are planning further simplifications and cost containment initiatives. The group aims at reaching a cumulative cost savings of £2.2bn by 2012 of which £1.5 billion is expected to be achieved by the end of this year.
2010 has started on a good note for GSK and the coming months can be even more rosy.
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