UPDATE 1-Tail-end of swine flu boom lifts Glaxo Q1 profits

* Q1 earnings 30.7p a share vs consensus 29.5p

* Q1 sales 7.36 bln pounds vs consensus 7.17 bln

* Glaxo CEO says made good start to year
(Adds details, background on swine flu and other products)

LONDON, April 28 (BestGrowthStock) – Bumper sales of swine flu
vaccine boosted GlaxoSmithKline’s (GSK.L: ) first-quarter earnings
per share 17 percent, more than expected, but the rest of 2010
may be tougher as H1N1 business wanes.

While Glaxo is better placed than many of its rivals when it
comes to patent expiries, it will be hit by accelerating erosion
in sales of antiviral Valtrex as multiple generics enter the
U.S. market later this year.

As a global player, it also faces pressure from government
healthcare reforms and price cuts — not just in the United
States but also Japan and Germany.

On the plus side, the threat to its top product, the lung
drug Advair, seems to be receding after a decision by Novartis’s
(NOVN.VX: ) generics unit Sandoz to drop a U.S. partnership with
Vectura (VEC.L: ) on developing a copy of the medicine.

Pre-tax profit was 2.23 billion pounds ($3.41 billion),
equivalent to earnings before major restructuring up 17 percent
at 30.7 pence per share as sales rose 9 percent to 7.36 billion

The mean consensus forecast had been for earnings of 29.5p
and sales of 7.17 billion pounds, according to Thomson Reuters

Sales of pandemic H1N1 flu vaccine were 698 million, ahead
of expectations.

Glaxo’s strong performance follows better-than-expected
quarterly results and resilient outlooks from rival European
drugmakers Roche (ROG.VX: ), Novartis and Novo Nordisk (NOVN.VX: ).

Some U.S. companies, however, notably Eli Lilly (LLY.N: ),
have warned that President Barack Obama’s healthcare reforms
will hit earnings in 2010 and 2011.

Unlike many other large drugmakers, Glaxo does not give
explicit guidance on sales and earnings.

Stock Market Advice

(Reporting by Ben Hirschler; editing by Paul Sandle)

UPDATE 1-Tail-end of swine flu boom lifts Glaxo Q1 profits