Glaxo increases 2013 Q3 dividend by 6%

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Broadly-based sales growth with Group turnover +1% CER:

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Pharmaceuticals and Vaccines sales flat: US +2%, Europe +5%, Japan +2% offset by EMAP -9%, impacted by decline in China sales and Vaccines phasing

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Consumer Healthcare +4%

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Total Group turnover ex-divestments +1%

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Further significant pipeline approvals and filings:

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4 approvals; US: Tivicay for HIV and FluLaval Q-IV vaccine for flu; Europe: Tafinlar for metastatic melanoma; Japan: Relvar Ellipta for asthma

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Positive FDA Adcom recommendation for Anoro Ellipta in COPD and positive CHMP opinion for Relvar Ellipta in asthma & COPD

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3 FDA filings: Arzerra for first-line CLL; dolutegravir-Trii for HIV; fluticasone furoate monotherapy for asthma

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Continued delivery of operating and financial efficiencies, strong cash generation and returns to shareholders:

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Net cash inflow from operating activities of £2.1 billion; core tax rate 23.5%

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Core EPS 28.9p (+16%) benefiting from operating, financial and long-term cost efficiencies

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Q3 dividend: 19p (+6%)

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£1 billion of shares repurchased by the end of Q3; continue to target £1-2 billion for the year

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Successful implementation of measures to drive strategic focus and improve growth outlook:

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Agreement to divest Lucozade and Ribena to Suntory for £1.35 billion and Arixtra/Fraxiparine and related manufacturing site to Aspen for £700 million

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Full year 2013 guidance reaffirmed:

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Core EPS growth of 3-4% on sales growth of around 1% (both CER)

Summary

■	Broadly-based sales growth with Group turnover +1% CER:
	-	Pharmaceuticals and Vaccines sales flat: US +2%, Europe +5%, Japan +2% offset by EMAP -9%, impacted by decline in China sales and Vaccines phasing
	-	Consumer Healthcare +4%
	-	Total Group turnover ex-divestments +1%

■	Further significant pipeline approvals and filings:
	-	4 approvals; US: Tivicay for HIV and FluLaval Q-IV vaccine for flu; Europe: Tafinlar for metastatic melanoma; Japan: Relvar Ellipta for asthma
	-	Positive FDA Adcom recommendation for Anoro Ellipta in COPD and positive CHMP opinion for Relvar Ellipta in asthma & COPD
	-	3 FDA filings: Arzerra for first-line CLL; dolutegravir-Trii for HIV; fluticasone furoate monotherapy for asthma

■	Continued delivery of operating and financial efficiencies, strong cash generation and returns to shareholders:
	-	Net cash inflow from operating activities of £2.1 billion; core tax rate 23.5%
	-	Core EPS 28.9p (+16%) benefiting from operating, financial and long-term cost efficiencies
	-	Q3 dividend: 19p (+6%)
	-	£1 billion of shares repurchased by the end of Q3; continue to target £1-2 billion for the year

■	Successful implementation of measures to drive strategic focus and improve growth outlook:
	-	Agreement to divest Lucozade and Ribena to Suntory for £1.35 billion and Arixtra/Fraxiparine and related manufacturing site to Aspen for £700 million

■	Full year 2013 guidance reaffirmed:
	-	Core EPS growth of 3-4% on sales growth of around 1% (both CER)

Companies mentioned