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GlaxoSmithKline sees better signs for lung drugs

London - GlaxoSmithKline (GSK) said on Wednesday it expected to start to regain market share in respiratory medicine after weak demand for lung drug Advair again hurt fourth-quarter sales, capping a rough year for Britain's top drug maker.

GSK is also banking on an asset swap with Novartis to help revive its fortunes, and looking to unlock value by floating its HIV unit ViiV Healthcare. It has hired three banks to advice on ViiV options, according to people familiar with the matter.

Chief executive Andrew Witty is under pressure after failing to deliver on earlier promises to return the drug maker to growth.

The company expects continued adverse "headwinds" in the first half of 2015 but a stronger performance in the second half of the year.

GSK is buying vaccines, selling cancer drugs and forming a consumer health joint venture with Novartis in a $20bn transaction designed to ensure more stable and predictable long-term growth. The deal is due to close in the first half of 2015.

Investors, however, are worried about short-term pressure on the 15-year-old inhaled medicine Advair due to competition from rival products and falling prices, as well as the slow uptake of GSK's new respiratory drugs Breo and Anoro.

Quarterly sales were £6.19bn, down 8% from a year earlier. Core earnings per share - the measure followed most closely by investors - were down 6% at 27.3 pence.

Analysts, on average, had forecast sales of £6.2bn and core EPS, which excludes certain items, of 25.9 pence, according to Thomson Reuters.

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