GlaxoSmithKline reported a 23% decrease in pre-tax profits for the second quarter of 2014 when compared to the same time last year. It also saw revenue drop 13%. Following these decreases, the company has lowered its 2014 outlook and expects it to be closer to 2013. It had hoped for a 3% to 4% increase in earnings per share in 2014, reports The Telegraph.
GlaxoSmithKline CEO Sir Andrew Witty claims that the company is in a transitional period and that projects currently being developed show promise for long-term results.
GlaxoSmithKline also noted that sales were down and that it was facing competition from rivals selling cheaper products than it. This adds to the trouble the company has been having in China with allegations of bribery to doctors in an effort to increase sales, The Telegraph notes.
GSK shares were down 5% as of noon Wednesday.