UK Drugs Group GSK Profit Drops Amid Cost-Saving Overhaul

British pharmaceutical giant GSK reported Wednesday a drop in third-quarter profit as the group was hit by restructuring costs as it tries to reduce its spending.

Net profit in the July-September period fell 23 per cent to £1.5 billion ($2.1 billion) from the period last year, the company said in a statement.

But the group reaffirmed its revenue and profit guidance for the full year.

GSK announced in July a three-year cost savings programme to simplify the group and focus resources on its late-stage drugs pipeline and research and development.

It has set a 2029 target for achieving annual savings of £1.9 billion but has not said if the measures will lead to job cuts.

GSK said in October that it was considering cutting 1,200 jobs at its Belgium subsidiary, representing around 15 per cent of its workforce in the country, as it faces falling global demand for vaccines.

“GSK has delivered another strong quarter, with our key growth drivers and new launches performing well,” said chief executive Luke Miels, who took over from Emma Walmsley at the start of the year.

Revenue increased four per cent to £8.9 billion from a year earlier, boosted by strong sales of its cancer, respiratory and HIV drugs.

Shares in the company fell around five per cent in early trading on the London Stock Exchange Wednesday.

Last year, GSK’s annual profit more than doubled to £5.7 billion.