GSK 2010 Results Affected By Government Measures, Generic Competition And Legal Costs

BMI View: GlaxoSmithKline (GSK)'s 2010 results highlight the company's high exposure to healthcare sector cost-containment programmes and pricing pressures placed on medicines by governments in developed state. The drugmaker has also suffered due to the ongoing patent cliff, under which almost all leading blockbusters will lose patent protection. However, on a positive note, the company has increased its focus on industry-driven emerging economies, as highlighted by revenue growth in these markets. GSK's investment in creating a product portfolio suited to markets where out-of-pocket spending has traditionally resulted in preferences for low-value drugs, in addition to adopting pricing strategies suited to

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