Here's What Cost GlaxoSmithKline PLC Nearly $10 Billion in Market Cap in October
Shares of U.K.-based Big Pharma giant GlaxoSmithKline (NYSE: GSK) tumbled during the month of October, according to data from S&P Global Market Intelligence, losing nearly $10 billion in market cap in the process. The culprits for the drop appear to be its weaker-than-expected third-quarter operating results and rumblings about a large acquisition.
The clearest issue for GlaxoSmithKline, which is more commonly known as GSK, was its disappointing third-quarter results. On a constant currency basis, pharmaceutical sales inched higher by just 2%, vaccine sales were flat, and consumer healthcare grew by a steady 2%. That's an overall increase in sales of just 2%, with sales in Europe actually declining. The company cited strong growth in new products, but pointed to divestments and generic competition to mature drugs as the culprit for its pedestrian sales growth in pharma. Comparably, GSK's revenue was pretty much right in line with Wall Street's expectations.
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Source: Fool.com
