Group sales growth of 2%:
Pharmaceuticals and Vaccines +2% (Pharmaceuticals +2%, Vaccines +1%) and Consumer Healthcare +1%
Pharmaceuticals and Vaccines growth in US, EMAP and Japan offset declines in Europe and ViiV Healthcare
Consumer sales growth of 7% excluding non-core OTC brands identified in 2011 for disposal; agreements now reached to divest brands with combined 2011 sales of approximately 370 million
Further R&D pipeline progress:
Positive data received since full year results for dolutegravir (integrase inhibitor for HIV); dabrafenib (BRAF inhibitor for melanoma) and albiglutide (GLP1 for type 2 diabetes)
Quadrivalent flu vaccine filed in Q1 2012; 4 products with sufficient data to file in 2012; Relovair (asthma and COPD), Promacta (HepC), MEK and BRAF; 4 products expected to complete Phase III registration studies in 2012: albiglutide, dolutegravir, Mosquirix, LABA/LAMA
Cost management and financial efficiencies driving leverage and core EPS growth:
Core operating profit 2.1 billion (+3%); core operating margin 31.2% (Q1 2011: 31.0%)
Q1 core tax rate 25.9%; 226 million of share buybacks completed as part of ongoing programme
Core earnings 1.4 billion (+4%); core EPS 27.3p (+7%)
Total EPS 26.7p down 10% primarily reflecting impact of Quest disposal in Q1 2011
Continued focus on execution of strategy and returns to shareholders:
Q1 dividend: +6%
2012 share repurchases now expected to be 2-2.5 billion: 1.5-2 billion from ongoing programme and 450 million from the sale of European and International non-core OTC brands
Offer for Human Genome Sciences aligned to long term strategy
2012 outlook for sales growth and gradual expansion of core margin unchanged
