GSK 4Q10

4Q Revenues: $11.4 billion (-13%)

4Q Loss: $955 million(earnings of $2.6 billion in 4Q09)

FY Revenues: $44.0 billion (-1%)

FY Earnings: $2.9 billion (-67%)

Comments: U.S. pharma sales for the year dropped 11% to $11.9 billion, while European sales dropped 7% to $10.1 billion. Emerging markets rose 22% to $5.5 billion in that span. The vaccine segment overall grew 15% to $6.7 billion. Generic exposure for Valtrex and Avandia's continuing death-spiral impacted revenues for 4Q and FY. Valtrex sales were $152 million (-60%) for 4Q and $823 (-60% from $2.0 billion) for FY. The 4Q loss was driven by $3.2 billion in legal costs and $450 million in restructuring costs. GSK announced plans to sell off non-core OTC consumer health brands that add up to around $750 million in annual sales. The company also sold its share in Quest diagnostics for $1.1 billion (after tax) this week and sold its interest in Zovirax to Valeant for $300 million.