GSK sees Chinese sales drop

<p>Sales in China have fallen fast for GSK.</p>

Pharmaceutical company GlaxoSmithKline (GSK) has experienced a sharp drop in its sales figures for China.

The firm's sales in the Asian nation were down by 61 per cent in the July to September third quarter on the back of a corruption scandal.

GSK admits some of its executives in China broke the law earlier in the year and this has had a major impact on its business in Asia.

Andrew Witty, chief executive at GSK, suggested it is still too early to predict what the long term impact is going to be on the company.

"We continue to co-operate with the authorities and we remain fully committed to supplying our products to patients in the country," the firm said in a statement.

Despite the massive drop in sales GSK has experienced in China in the last few months, its share price has risen slightly in early trading this morning (October 23rd).

The firm's stocks were selling 0.16 per cent higher than at the start of the session at 08:19 BST.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.