GlaxoSmithKline reports healthy third-quarter profits

GlaxoSmithKline has reported a three percent increase in operating profits for the third quarter of 2011.

In its latest trading update, the British pharmaceutical giant said profits stood at 2.18 billion pounds before major restructuring and revenues rose by three percent to 7.1 billion pounds.

Chief executive Andrew Witty said the breadth of the company's portfolio has helped it to "mitigate economic volatility" this year, despite a challenging climate for drug and consumer products firms.

He added: "The impact of healthcare reform in the US and price cuts in Europe this year is in line with our expectations and we continue to expect a full-year impact of around £325 million."

Mr Witty also told a news conference he believes GlaxoSmithKline's blockbuster respiratory drug will not face serious competition from generic rivals in Europe over the next few years.

Advair, which is used to treat asthma and chronic obstructive pulmonary disease, is the firm's top-selling medicine with worldwide sales of 5.14 billion pounds last year.