Disposals cushion GSK profit

Gains on disposals cushioned GlaxoSmithKline's first quarter profit from a sharp fall in sales of flu products, following last year's pandemic-linked windfall.

Britain's biggest drugmaker acknowledged the first three months of 2011 were tough but pointed to an improving picture in underlying growth as its diversified portfolio adjusts to pressure on prices and competition from generics.

Quarterly sales fell 10 percent to 6.59 billion pounds ($10.9 billion) while earnings per share before major restructuring rose 9 percent to 32.2 pence.

Analysts expected sales of 6.66 billion pounds and EPS of 30.4p, according to Thomson Reuters I/B/E/S consensus forecasts.

Exceptional demand for vaccines and anti-flu drug Relenza flattered results a year ago and their absence this year - plus sharply lower revenue from diabetes pill Avandia and herpes drug Valtrex - lopped around 1 billion pounds off quarterly sales. REUTERS