GSK Expecting Lower Returns

May 2007 | Company Finance Alert

Along with all multinationals, UK-based GlaxoSmithKline (GSK) is expecting to post significantly lower sales in Hungary this year as the government pushes through its controversial healthcare reforms. The situation is so oppressive that the local subsidiary of the world's second-largest drugmaker - GSK Kft - believes that it will not make a profit in 2007. While this scenario can be expected for its rivals as well, GSK Kft is well positioned to have a long-term presence in the country through its vaccine production facility. Therefore, the short-term pain will eventually be replaced by healthy long-term returns.

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