GlaxoSmithKline

3Q Revenues: $11.1 billion (+5% in USD, -3% in local currency)

3Q Earnings: $2.7 billion (+2% in USD, -6% in local currency)

YTD Revenues: $33.3 billion (+6% in USD, -3% in local currency)

YTD Earnings: $8.4 billion (+8% in USD, -1% local currency)

Comments: The weak dollar bolstered the appearance of GSK’s results, but the numbers in GBP show a down quarter. Avandia’s safety concerns walloped GSK’s pharma growth in 3Q, with sales dropping 51% to GBP 153 million ($311 million). Avandia sales have dropped 28% in local currency to GBP 717 million ($1.4 billion). Generic competition damaged sales of Zofran (-86%), Flonase (-23%), Wellbutrin XL (-41%), and Coreg IR/CR (-20%). Overall, 3Q pharma sales were down 2% in local currency to GBP 4.6 billion ($9.3 billion), leading the company to announce a new $3.0 billion Operational Excellence series of cuts to improve the bottom line. This will include streamlining its manufacturing network and salesforce, along with “simplification and streamlining of support infrastructure” to cut R&D costs. The program is expected to deliver pre-tax savings of $1.4 billion by 2010.