GSK profit falls 23% as restructuring costs weigh

GSK reported a 23 percent drop in third-quarter net profit on Wednesday as restructuring costs weighed on the British pharmaceutical group.

Net profit for the July-September period fell to £1.5 billion, or $2.1 billion, from a year earlier, the company said. Revenue rose four percent to £8.9 billion, helped by sales of cancer, respiratory and HIV drugs.

GSK reaffirmed its full-year revenue and profit guidance. The company announced in July a three-year cost-savings programme aimed at simplifying the group and focusing resources on late-stage drugs, research and development.

GSK has set a 2029 target for annual savings of £1.9 billion, but has not said whether the programme will lead to job cuts. In October, it said it was considering cutting 1,200 jobs at its Belgium subsidiary, about 15 percent of its workforce there, amid falling global demand for vaccines.

Chief executive Luke Miels said GSK had delivered a strong quarter, with key growth drivers and new launches performing well. Shares in the company fell around five percent in early trading on the London Stock Exchange.