GLAXOSMITHKLINE and AstraZeneca, the UK’s two biggest drugs companies, will report combined third-quarter operating profits of £2.9 billion today, analysts forecast.

GSK is expected to announce operating profits of about £1.8 billion for the three months ended September 30, little changed from the same period last year. Total sales of about £5.8 billion are predicted with earnings per share of around 22p.

According to UBS, GSK, the world’s third largest company, is facing a slowdown in US prescriptions of two of its best-selling drugs: Advair for asthma and Avandia for diabetes. A weaker US dollar and a series of one-off charges related to manufacturing plant closures are also likely to restrain profits.

GSK’s performance outside of the US is likely to have been better during the third quarter. The company is expected to report robust sales of its antidepressant Wellbutrin and herpes drug Valtrex. Its vaccines division is also performing well.

GSK shares have lagged behind the rest of the sector in recent years but many observers believe that the worst of the company’s problems have now been resolved.

AstraZeneca, which reports in dollars because more than half of its sales are in the US, is expected to post third quarter operating profits of $2.07 billion (£1.1 billion) on turnover of $6.5 billion with earnings per share of around 97 cents.

The anti-cholesterol agent Crestor is expected to post a 60 per cent rise in sales to $520m (£276m) with good support from breast cancer treatment, Arimidex, and asthma drug, Symbicort.

Last week AstraZeneca also announced that Seroquel, a schizophrenia drug, had been granted approval by America's Food and Drug Administration as a treatment for manic depression, a potentially a significant development for a drug which already had sales of $2.8 billion in 2005.

HOW THEY ARE EXPECTED TO PERFORM

GSK

Results due at 12 noon
Third-quarter operating profits: £1.8bn
Sales: £5.8bn
Earnings per share: 22p

ASTRAZENECA

Results due at 11am
Third-quarter operating profits: $2.07bn (£1.1bn)
Sales: $6.5bn
Earnings per share 97 cents

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