Glaxo edges lower after lacklustre Q4 numbers

GlaxoSmithKline, the UK’s dominant drugs company, has reported a decline in fourth quarter sales and announced a share buyback programme well below analysts' expectations.

Shares in the firm were trading at £13.94 by mid-afternoon, a fall of 1.8% on yesterday's closing price.

Revenue fell 2% to £6.98bn in the fourth quarter of 2011, the firm reported today, with earnings per share before restructuring charges at 28.4p, missing the average estimate of £7.31bn and 29p earnings per share, Bloomberg reports.

GSK blamed weak sales of flu-related products, combined with the Avandia diabetes medicine and Valtrex antiviral, which dropped from £317m to £127m.

The pharma giant also announced details of its share buyback programme. It pledged to buy £1bn-£2bn in stock this year and use the proceeds from a sale of consumer brands to boost its dividend.

But the amount was below analyst expectations, who had expected a £2.5bn share buyback programme, according to Bloomberg.

The company bought £2.2bn in shares last year in its first repurchase since 2008.

It plans to replace revenue lost with sales from fresh products this year.