SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the period ending 5th February 2009

GlaxoSmithKline plc

(Name of registrant)
980 Great West Road,
Brentford,
Middlesex, TW8 9GS
(Address of principal executive offices)

Indicate by check mark if the registrant files or will file annual reports under cover Form 20-F or Form 40-F

Form 20-Fx      Form 40-Fo

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yeso      Nox

 

 

 

PRESS RELEASE

Issued: Thursday, 5th February 2009, London, U.K.

Unaudited Preliminary Results Announcement for the year ended 31st December 2008

GSK delivers EPS of 104.7p before major restructuring Dividend increased 8% to 57p

Results before major restructuring* (formerly ‘business performance’)

		2008				Growth								Q4 2008				Growth
		£m				CER%				£%				£m				CER%				£%
Turnover			24,352				(3	)			7				6,910				(3	)			16
Earnings per share			104.7p				(9	)			6				26.7p				(23	)			9

Total results

		2008				Growth								Q4 2008				Growth
		£m				CER%				£%				£m				CER%				£%
Turnover			24,352				(3	)			7				6,910				(3	)			16
Restructuring charges			1,118												524
Earnings per share			88.6p				(21	)			(6	)			19.3p				(40	)			(2	)

The full results are presented under ‘Income Statement’ on pages 11 and 16.

		1

PRESS RELEASE

Chief Executive Officer’s Review

I am pleased with the response of the business to what we always knew would be a challenging year in 2008, due to the adverse impact of significant US patent expiries and declines in Avandia sales. As we forecasted, these factors led to a decline in earnings per share for the year, which was compounded by an unexpected legal charge in the fourth quarter.

2008 was a turning point for GSK and we are now in a pivotal period of change as we redefine our business model to increase sales growth, reduce risk and deliver long-term sustainable financial performance to shareholders.

The expansion of our restructuring programme, announced today, is a vital catalyst of this strategy. It will radically change GSK’s business model and savings from this programme will be used to support our strategic priorities.

Going forward, we are also making an important change to the way we communicate with shareholders and are no longer providing specific short-term numerical earnings guidance. This change in approach is not connected to performance, rather it should be seen as a strong signal that we are focused on implementing our strategic priorities. Successful implementation of these priorities will enable us to deliver long-term, sustainable financial performance; and we believe that this is where our dialogue with investors and analysts should be based.

GSK’s strategic priorities are:

•

Grow a diversified global business

•

Deliver more products of value

•

Simplify GSK’s operational model

We will regularly report our progress against these priorities and I look forward to doing so during 2009.

Grow a diversified global business

The performance of our ‘core’ pharmaceuticals business and the increasing diversification of its sales base are important indicators of GSK’s progress. In 2008, if we exclude genericised products, Avandia and pandemic products (which have significant sales volatility) the remaining pharmaceuticals business delivered £16.4 billion in sales and grew 10% in CER terms.

I was especially pleased to see the contribution to sales of new products, another important measure of progress.

Last year we supplemented the ‘class of 2007’ with the ‘class of 2008’ and launched 12 pharmaceutical products and vaccines. We are now starting to see good traction with all of these products and they contributed almost £800 million to 2008 sales.

It is also worth noting that GSK secured 17% of FDA approvals for new NCEs and vaccines, last year. In an environment where declining R&D productivity for pharmaceutical companies is of increasing concern, I believe that this level of innovation is very promising. This ‘share’ of FDA approvals is also more than double our share of the US market.

Over the course of the last 6 months, I have spent a lot of time in the USA. Clearly there are some very interesting dynamics at play in this market and, more than ever before, a real need to demonstrate value.

The US pharmaceuticals business remains a very important part of our future, and we have a strong base business on which to build, including Advair, which last year performed well and returned to volume growth in the second half.

Issued: Thursday, 5th February 2009, London, U.K.		2

PRESS RELEASE

Inside our US pharmaceuticals business we have initiated a major change programme. We are changing our historic salesforce structures, to resource key growth areas such as vaccines and oncology, and to rescale in primary care, where industry saturation of pharmaceutical representatives is now evident.

We are refocusing marketing to demonstrate value to payers by increasing communication of patient health outcomes and compliance benefits. We are also looking at new product offerings that focus on volume opportunities. ReliOn Ventolin, for example, which we are selling through Wal-Mart, is the lowest priced albuterol inhaler available in any retail pharmacy in the United States.

I am confident that we are making the necessary changes to be successful in this market. I also want GSK to develop a constructive working relationship with the new administration, to help improve access to medicines and demonstrate their value through better patient compliance and innovative pricing approaches.

In Emerging Markets, sales for 2008 grew 12% to £2.3 billion and we are moving fast to build critical mass. So far, we have executed 4 transactions to build a broader and more geographic diverse portfolio that is capable of accessing multiple price points and addressing patient needs.

When completed, acquisitions of multiple new brands from BMS and UCB will add more than £150 million of new sales to GSK’s Emerging Markets business and we have increased our market share leadership of the MENA region, notably in Egypt where we increased market share from 6% to 9% and Pakistan from 11% to 13%. As a result of our alliance with Aspen Pharmaceuticals, we have already selected the first products for regulatory review, with the first submission expected this quarter.

A key indicator of progress in these markets will be their contribution to GSK’s overall sales and growth.

Financial efficiency is also intrinsic to the investments we are making here. In essence, through the deals we have executed we have added new profit flows to our existing infrastructure by acquiring these brands with minimal additional fixed costs.

In Japan, we are now moving into a phase of converting our extensive pipeline into approved medicines. For example, with recent approvals for use of Adoair in COPD and paediatric patients with asthma we are building on our position as the market leader in respiratory; and we are set to gain share in neurological products with the recent launch of Lamictal, for epilepsy.

In 2008, mandatory government price cuts adversely impacted our overall sales growth. Nevertheless, representing close to 10% of pharmaceutical industry sales, and with around 40 new product opportunities in development, Japan is a key market for GSK investment and growth.

It is also important that we capitalise on our dynamic vaccines pipeline. Last year, GSK secured 2 FDA approvals for new vaccines. This demonstrated our innovation and heritage in biologics by delivering a new multi-component vaccine, Kinrix, and an entirely new vaccine, Rotarix, to prevent rotavirus. Worldwide, Rotarix sold £167 million and grew 71% in 2008.

A second wave of new vaccine opportunities is not far behind. In the USA, we are on track to submit new data for Cervarix to the FDA during the first half of this year. Whilst in Europe, I was very pleased to see last month a positive opinion granted for Synflorix, a new, highly competitive vaccine to protect infants against pneumococcal disease.

Synflorix, like Cervarix, is a strong new addition to our European vaccine portfolio, which last year grew more than 25% and contributed over £1 billion in sales. These two vaccines are at the vanguard of preventative healthcare.

Issued: Thursday, 5th February 2009, London, U.K.		3

PRESS RELEASE

In similar fashion, Prepandrix, our pre-pandemic vaccine was the first vaccine to be approved for this use in Europe. We continue to work with governments around the world to assist them in their preparations for managing a possible influenza pandemic.

Sales of pre-pandemic products were lower than 2007, reflecting the variable timings of tender orders from governments. In 2009, we expect to see further orders from governments, the most recent being from the UK government, which last week announced its intention to double and further diversify its anti-virals stockpile, by purchasing more than 10 million treatment courses of Relenza.

In Consumer Healthcare, we are starting to see the fruits of our investment into innovation, acquisitions and marketing excellence.

I continue to believe that the potential of this business is significant and we will be viewing gains in market share as key indicators of our strategic progress.

We have multiple new sales opportunities, including the launch of alli, across Europe this year. This is the first time the European Commission has re-classified a medicine from a prescription only status to use as an OTC product, and I am particularly proud of the regulatory team at GSK who made this happen.

We have vital brand innovation capability, last year producing more than 10 new brand extensions to products such as Panadol, Aquafresh and Lucozade.

We have geographic scale to leverage both existing and newly acquired brands. In 2007, BreatheRight was available in 7 markets. It is now available in 57 and we expect to launch it in another 20 markets in 2009.

These are all sources of competitive advantage for GSK and we are investing across all areas of this business to grow sales. The acquisition of Biotene, for our oral care franchise, and proposed acquisition of Alvedon for our OTC pain management business, are some initial positive steps in this regard.

Of course, we are closely monitoring any potential impact to this business resulting from the economic downturn. Undoubtedly, many market categories are experiencing lower retail purchases. However, almost all of GSK’s brands were strengthened in 2008, with Sensodyne, Aquafresh, alli and Panadol all outperforming their respective categories in market share terms.

Our strategy is to maintain levels of A&P investment to drive growth in market share and innovate our brands and ensure our value for money proposition remains as strong as ever.

In the USA specifically, our Consumer Healthcare performance last year was not satisfactory, and this is largely attributable to our smoking cessation franchise. We have taken action to address this including a programme to reduce costs and refocus the business on delivering growth. We will also be increasing the use of global innovations and the marketing model that has proven successful in other markets around the world. I am confident that we will see better performance in 2009.

Deliver more products of value

We currently have more than ten key new products filed with regulators in the USA, Europe and Japan, including two innovative oncology products: ofatumumab, filed last week and pazopanib, which we announced today.

These two assets will be clear examples of what I mean by delivering more products of value. We expect they will offer meaningful improvements to patients in both tolerability and efficacy and we are committed to ensuring that we listen to payers to ensure that these medicines are successfully reimbursed.

Issued: Thursday, 5th February 2009, London, U.K.		4

PRESS RELEASE

It is clear to me that GSK’s R&D productivity has improved significantly. It is equally clear that we must relentlessly seek to neutralise the ‘cyclicality’ of R&D and produce a regular flow of assets. A key measure of our success will be the number of reimbursable filings and approvals secured by GSK.

We now have a late-stage pipeline of around 30 assets, and this is the sort of level we aim to sustain. This is also another key measure of our R&D progress.

In the last 12 months, we have added 6 new assets into our phase III pipeline, including most recently, darapladib for atherosclerosis. We have also announced today our intention to start phase III trials in the next few weeks for Syncria, a potential new treatment for type II diabetes.

We are increasing investment in multiple types of new vaccines, such as new paediatric vaccines to prevent meningitis, and a new generation flu vaccine for the elderly population. Developing therapeutic vaccines is also a key priority for GSK. Our MAGE-3 vaccine, is making good progress and last year we signed an exclusive licensing deal with AFFiRiS to develop two Alzheimer’s disease vaccines, currently in phase I development.

As I have said before, disciplined allocation of our investment capital is a key element of our R&D strategy. The augmentation of our late-stage pipeline, over the last few years, has been accomplished without substantial increases in total R&D expenditure. Our goal is to sustain this activity and efficiency.

We must also be efficient in drug discovery. More than 35% of discovery projects have been terminated following our therapy area rebalancing exercise and reviews by the new Drug Discovery Investment Board. As part of the same process, all of our 35 Discovery Performance Units (DPUs) now have 3-year funding in place to develop their projects.

We are also balancing R&D risk and expenditure through increased externalisation. In the last year, we completed or expanded 21 transactions related to our drug discovery operations, including the recent acquisition of Genelabs.

Beyond corporations, I also see externalisation as a vital link to working more closely with academia. In 2008, for example we embedded GSK staff in the laboratories of the Harvard Stem Cell Institute; and handed over pipeline assets for development to the University of Cambridge.

Altogether, GSK has a significant mass of discovery capability, with around 70 different discovery engines working either inside or outside of the company. This is very important to our future as we further diversify our small molecule product portfolio.

Simplify GSK’s operating model

We are making good progress to simplify our business and appropriately scale the company for the next few years.

Having conducted a series of business reviews, we have expanded our restructuring programme and now expect to realise pre-tax total annual savings of £1.7 billion by 2011, with related pre-tax charges of £3.6 billion. The charges are phased approximately 40% to 31st December 2008, 35% in 2009, 20% in 2010, with the balance mostly in 2011. In total, approximately 75% will be cash expenditures and 25% will be accounting write-downs.

This represents incremental pre-tax savings of £1 billion, phased with approximately £450 million expected in 2009, £700 million in 2010 and rising to £1 billion in 2011. Incremental pre-tax charges for the expanded programme are expected to be £2.1 billion, with the majority of costs incurred by 2011.

Issued: Thursday, 5th February 2009, London, U.K.		5

PRESS RELEASE

This cost versus annual savings ratio represents a good financial return on our investment. The savings will help to improve the productivity and effectiveness of our operations. In 2009, savings from restructuring will mitigate the decline we expect to our gross margin due to product mix changes with a higher percentage of sales generated from vaccines, Consumer Healthcare and Emerging Markets, and support further investment behind our strategic priorities.

We are very conscious of the effect this programme will inevitably have on our employees and if options exist where we can achieve our financial goals and preserve jobs we will do everything we can to do so. Where no other option aside from redundancy exists, we will support those employees affected in every way we can.

In line with previous practice we will not be providing targets for job reductions and we will announce restructuring outcomes once employees, relevant works councils and trade unions have been consulted and informed.

We are also simplifying our organisation and improving alignment. This is becoming evident through many different programmes and initiatives, including a comprehensive programme to reduce our IT costs, through which we have established a new online service with Microsoft to integrate collaborative tools. This will produce financial savings and improve our collaboration and productivity.

We are also looking for financial efficiencies and in September started a programme to reduce our working capital. This has successfully delivered underlying cash flow benefits of more than £500 million, which we are using to invest in our strategic priorities.

Financial strategy

Our financial strategy remains to maintain an efficient balance sheet, and use cash resources to invest in our strategic priorities and increase returns to shareholders through our progressive dividend policy.

The dividend for 2008 increased by 8% to 57p (53p in 2007). In 2008, we completed share repurchases of £3.7 billion and we do not expect to make any significant repurchases in 2009.

Cash generation remains strong, with net cash inflow from operating activities of £7.3 billion for 2008, up 19% in sterling terms.

Outlook

2008 marked a turning point for GSK and those factors which impacted our performance, in particular declines in Avandia sales, are now starting to reduce. 2008 also saw the first steps towards a radical transformation of our business model. We enter 2009 with confidence and expect to make further good progress in implementing our strategic priorities that will enable us to meet our long-term objective of reducing risk and delivering sustainable growth to shareholders.

Finally, I would especially like to recognise the enormous contribution of our employees and our wide network of partners and suppliers. Their willingness, energy and enthusiasm for change are strong foundations on which to build GSK’s new future business model.

Andrew Witty
Chief Executive Officer

Issued: Thursday, 5th February 2009, London, U.K.		6

PRESS RELEASE

Trading Update

Turnover and key product movements impacting turnover growth for the year Total pharmaceutical turnover declined 3% for the year to £20.4 billion, driven largely by US performance (-11% to £8.9 billion) which was impacted by expected generic competition to several mature brands and further declines in Avandia sales. Sales in Asia Pacific fell 1% to £1.9 billion, reflecting the impact of pharmaceutical price cuts in Japan. These declines were partly offset by growth in Europe (+3% to £6.5 billion) and Emerging Markets (+12% to £2.3 billion).

Sales of Seretide/Advair for asthma and COPD rose 8% to £4.1 billion. In the USA, Advair sales rose 6% to £2.2 billion, with a return to volume growth in the second half of the year. In Europe, sales increased by 4% to £1.4 billion. Advair performance was particularly strong in Emerging Markets (+26% to £215 million) and Japan where sales of the product more than doubled to £83 million.

Strong pharmaceutical sales performances included Valtrex for herpes (+16% to £1.2 billion), Lovaza for very high triglycerides, which was acquired from Reliant Pharmaceuticals in 2007, (£290 million +71% on a pro forma basis) and Vaccines (+15% to £2.5 billion). Within the vaccines portfolio, there were strong performances from Hepatitis vaccines (+14% to £665 million) and combination paediatric vaccines Infanrix/Pediarix (+12% to £682 million). Rotarix rose 71% to £167 million, largely driven by government tender orders in Latin America and the launch of the product in the USA in August. New cervical cancer vaccine, Cervarix, recorded sales of £125 million for the year, following several tender wins, including national government orders in the UK and the Netherlands.

Other strong pharmaceutical sales performers were newer products such as Avodart (+27% to £399 million), Boniva (+34% to £237 million), Arixtra (+53% to £170 million) and Coreg CR (+73% to £165 million).

Avandia product sales declined 40% during the year to £805 million, with US sales falling 49% to £434 million and European sales down 22% to £198 million. In Emerging Markets, Avandia product sales returned to growth in the second half of the year (Q4 sales +12%).

Lamictal sales fell 22% to £926 million, following the introduction of generic competition to the product in the USA in July. US sales of Lamictal fell 68% to £119 million in the fourth quarter. Sales of Coreg IR (-93% to £38 million) and Wellbutrin XL (-43% to £283 million) also fell due to generic competition in the US market. Sales of flu anti-viral Relenza fell 80% to £57 million, reflecting fewer government orders for stockpiling.

Total Consumer Healthcare sales for the year rose 3% to £4 billion. This compares to growth of 14% in 2007, which benefited from launch stocking of new anti-obesity treatment alli (sales of alli in 2008 were £75 million, down 53%). Excluding sales of alli, Consumer Healthcare sales rose 5% this year (versus 9% in 2007).

Sales of Oral healthcare products rose 6% to £1.2 billion, with strong performances from Sensodyne (+12% to £363 million) and Aquafresh (+3% to £452 million). Within Nutritionals, Horlicks sales rose 13% to £204 million, Lucozade sales rose 7% to £382 million and Ribena sales were flat at £161 million, although sales of Lucozade and Ribena in the second half of the year declined slightly, largely as a result of poor weather in the UK and a reduction in the impulse segment. OTC product sales declined 2% to £1.9 billion for the year, with sales of smoking cessation products down 12% to £299 million. Panadol sales grew 12% to £324 million.

Issued: Thursday, 5th February 2009, London, U.K.		7

PRESS RELEASE

Operating profit and earnings per share commentary — full year 2008

Results before major restructuring

Operating profit before major restructuring of £8,259 million for the year decreased by 10% in CER terms compared with 2007. Legal costs of £611 million (2007: £255 million) included the £278 million charge related to the Colorado investigation announced in January. Excluding legal costs, operating profit decreased by 6%, which was greater than the turnover decline of 3%, primarily due to higher cost of sales as a percentage of turnover.

Cost of sales increased to 23.7% of turnover (2007: 22.9%), principally reflecting the impact of generic competition to higher margin products in the USA, lower Avandia sales and a higher proportion of sales generated from vaccines, Consumer Healthcare, and brands sold in Emerging Markets, partly offset by savings from the operational excellence restructuring programme. In 2009, a similar trend is expected due to product mix changes and cost of sales as a percentage of turnover is expected to be around 24-25%.

SG&A costs, including legal charges, were 30.2% of turnover (2007: 30.0%). Excluding legal costs, SG&A as a percentage of turnover fell 1.2 percentage points to 27.7% (2007: 28.9%), reflecting the benefits of the operational excellence restructuring programme and currency movements. Excluding legal costs the 2009 SG&A margin is expected to be slightly higher than in 2008 as restructuring savings are more than off-set by increased marketing investments to support the strategic priorities and higher pension costs.

R&D expenditure was 14.4% of turnover (2007: 14.3%) and is expected to be around this level as a percentage of turnover in 2009.

Other operating income of £541 million included strong growth in royalty income to £307 million (2007: £216 million). Other operating income is expected to be slightly higher in 2009.

In the year, gains from asset disposals and settlements were £293 million (2007: £213 million), costs for legal matters were £611 million (2007: £255 million), fair value movements on financial instruments resulted in a charge of £10 million (2007: income of £41 million) and charges relating to previous restructuring programmes were £20 million (2007: £92 million). The impact of these items on operating profit before major restructuring was a £348 million charge in 2008 (2007: £93 million).

EPS before major restructuring of 104.7p decreased 9% in CER terms (a 6% increase in sterling terms) compared with last year. The favourable currency impact of 15 percentage points reflected a weakening of sterling against major currencies.

Total results after restructuring

Operating profit after restructuring for 2008 was £7,141 million, a decline of 6% in sterling terms and 20% CER compared with last year. This included £1,118 million (2007: £338 million) of restructuring charges related to the current operational excellence programme and restructuring following the Reliant Pharmaceuticals acquisition. In 2008, £639 million was charged to cost of sales, £304 million to SG&A and £175 million to R&D. EPS after restructuring of 88.6p decreased 6% in sterling terms (-21% in CER terms) compared with last year.

Operating profit and earnings per share commentary — Q4 2008

Operating profit before major restructuring for Q4 2008 was £2,106 million, down 21% compared with Q4 2007. The results were adversely impacted by the increased legal charge related to the Colorado investigation. Excluding this charge, EPS before major restructuring was 31.4p, a decrease of 9%.

Total EPS after restructuring for the quarter was 19.3p, down 40%, reflecting the higher legal charges and significantly higher restructuring costs compared with Q4 2007.

Issued: Thursday, 5th February 2009, London, U.K.		8

PRESS RELEASE

Cash flow

Net cash inflow from operating activities for the year was £7,311 million, up 19% in sterling terms. This was used to fund net interest paid of £410 million, capital expenditure on property, plant and equipment and intangible assets of £2,069 million, and acquisitions of £454 million. In addition, dividends paid to shareholders totalled £2,929 million (up 5% compared with 2007) and share repurchases amounted to £3,706 million. These, together with issuances of $9 billion under the US shelf registration statement and £700 million under the EMTN programme in the year, only partly offset by the repayment on maturity of existing debt, contributed to the increased cash position at 31st December 2008.

Net debt

Net debt increased by £4.1 billion during the year to £10.2 billion at 31st December 2008, comprising gross debt of £16.2 billion and cash and liquid investments of £6 billion.

The Group is well placed financially having completed its debt financing programme earlier in 2008. At 31st December 2008, GSK had short-term borrowings (including overdrafts) repayable within 12 months of only £1 billion with a further £0.7 billion repayable in the subsequent year.

Dividends

The Board has declared a fourth interim dividend of 17 pence per share resulting in a dividend for the year of 57 pence, a four pence increase over the dividend of 53 pence per share for 2007. The equivalent interim dividend receivable by ADR holders is 49.4564 cents per ADS based on an exchange rate of £1/$1.4546. The ex-dividend date will be 11th February 2009, with a record date of 13th February 2009 and a payment date of 9th April 2009.

Currency impact

The 2008 results are based on average exchange rates, principally £1/$1.85, £1/€1.26 and £1/Yen 192. The year end exchange rates were £1/$1.44, £1/€1.04 and £1/Yen 131. If exchange rates were to hold at these year end levels for the rest of 2009, the estimated positive impact on 2009 sterling EPS growth before major restructuring would be around 25 percentage points.

Issued: Thursday, 5th February 2009, London, U.K.		9

PRESS RELEASE

GlaxoSmithKline (GSK) together with its subsidiary undertakings, the ‘Group’ — one of the world’s leading research-based pharmaceutical and healthcare companies — is committed to improving the quality of human life by enabling people to do more, feel better and live longer. GlaxoSmithKline’s website www.gsk.com gives additional information on the Group. Information made available on the website does not constitute part of this document.

Enquiries:		UK Media		Philip Thomson		(020) 8047 5502
				Alice Hunt		(020) 8047 5502
				David Outhwaite		(020) 8047 5502
				Stephen Rea		(020) 8047 5502
		US Media		Nancy Pekarek		(919) 483 2839
				Mary Anne Rhyne		(919) 483 2839
				Kevin Colgan		(919) 483 2839
				Sarah Alspach		(215) 751 7709
		European Analyst / Investor		David Mawdsley		(020) 8047 5564
				Sally Ferguson		(020) 8047 5543
				Gary Davies		(020) 8047 5503
		US Analyst / Investor		Tom Curry		(215) 751 5419
				Jen Hill		(215) 751 7002

Results before major restructuring

Results before major restructuring is a measure used by management to assess the Group’s financial performance and is presented after excluding restructuring charges relating to the new Operational Excellence programme, which commenced in October 2007 and the acquisition of Reliant Pharmaceuticals in December 2007. Management believes that this presentation assists shareholders in gaining a clearer understanding of the Group’s financial performance and in making projections of future financial performance, as results that include such costs, by virtue of their size and nature, have limited comparative value.

CER growth

In order to illustrate underlying performance, it is the Group’s practice to discuss its results in terms of constant exchange rate (CER) growth. All commentaries are presented in terms of CER growth, unless otherwise stated.

Brand names and partner acknowledgements

Brand names appearing in italics throughout this document are trademarks of GSK or associated companies with the exception of Levitra, a trademark of Bayer, Bonviva/Boniva, a trademark of Roche, Entereg, a trademark of Adolor Corporation in the USA and Vesicare, a trademark of Astellas Pharmaceuticals in many countries and of Yamanouchi Pharmaceuticals in certain countries, all of which are used under licence by the Group. The percentage of FDA approvals includes Entereg, the NDA of which is owned by and was filed by our partner Adolor Corporation. GSK co-markets the product with Adolor.

Cautionary statement regarding forward-looking statements

Under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995, the company cautions investors that any forward-looking statements or projections made by the company, including those made in this Announcement, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Factors that may affect the Group’s operations are described under ‘Risk Factors’ in the ‘Business Review’ in the company’s Annual Report on Form 20-F for 2007.

GlaxoSmithKline plc, 980 Great West Road, Brentford, Middlesex TW8 9GS, United Kingdom Registered in England and Wales. Registered number: 3888792

Issued: Thursday, 5th February 2009, London, U.K.		10

PRESS RELEASE

Income statement

Year ended 31st December 2008

																		Results
		Results																before major
		before major								Major								restructuring				Major				Total
		restructuring								restructuring				Total				2007				restructuring				2007
		2008				Growth				2008				2008				(restated)				2007				(restated)
		£m				CER%				£m				£m				£m				£m				£m
Turnover:
Pharmaceuticals			20,381				(3	)							20,381				19,163								19,163
Consumer Healthcare			3,971				3								3,971				3,553								3,553
TURNOVER			24,352				(3	)							24,352				22,716								22,716
Cost of sales			(5,776	)			4				(639	)			(6,415	)			(5,206	)			(111	)			(5,317	)
Gross profit			18,576				(4	)			(639	)			17,937				17,510				(111	)			17,399
Selling, general and administration			(7,352	)			—				(304	)			(7,656	)			(6,817	)			(137	)			(6,954	)
Research and development			(3,506	)			2				(175	)			(3,681	)			(3,237	)			(90	)			(3,327	)
Other operating income			541												541				475								475
Operating profit:
Pharmaceuticals			7,427				(11	)			(1,096	)			6,331				7,211				(334	)			6,877
Consumer Healthcare			832				—				(22	)			810				720				(4	)			716
OPERATING PROFIT			8,259				(10	)			(1,118	)			7,141				7,931				(338	)			7,593
Finance income			313												313				262								262
Finance expense			(838	)							(5	)			(843	)			(453	)							(453	)
Share of after tax profits of associates and joint ventures			48												48				50								50
PROFIT BEFORE TAXATION			7,782				(14	)			(1,123	)			6,659				7,790				(338	)			7,452
Taxation			(2,231	)							284				(1,947	)			(2,219	)			77				(2,142	)
Tax rate %			28.7	%											29.2	%			28.5	%							28.7	%
PROFIT AFTER TAXATION FOR THE PERIOD			5,551				(14	)			(839	)			4,712				5,571				(261	)			5,310
Profit attributable to minority interests			110												110				96				—				96
Profit attributable to shareholders			5,441								(839	)			4,602				5,475				(261	)			5,214
			5,551								(839	)			4,712				5,571				(261	)			5,310
EARNINGS PER SHARE			104.7	p			(9	)							88.6	p			99.1	p							94.4	p
Diluted earnings per share			104.1	p											88.1	p			98.3	p							93.7	p

Issued: Thursday, 5th February 2009, London, U.K.		11

PRESS RELEASE

Pharmaceuticals turnover

Year ended 31st December 2008

		Total								USA								Europe								Rest of World
		£m				CER%				£m				CER%				£m				CER%				£m				CER%
Respiratory			5,817				5				2,720				6				1,982				2				1,115				9
Seretide/Advair			4,137				8				2,161				6				1,416				4				560				29
Flixotide/Flovent			677				(2	)			317				3				175				(4	)			185				(9	)
Serevent			263				(12	)			72				(9	)			136				(9	)			55				(23	)
Veramyst			72				>100				56				>100				11				—				5				>100
Flixonase/Flonase			186				(15	)			52				(29	)			52				(6	)			82				(8	)
Anti-virals			3,206				(4	)			1,600				(1	)			850				(12	)			756				(1	)
HIV			1,513				(5	)			640				(7	)			636				(6	)			237				4
Epzicom/Kivexa			442				23				178				15				209				25				55				48
Combivir			433				(14	)			180				(14	)			166				(19	)			87				1
Trizivir			212				(18	)			106				(18	)			92				(18	)			14				(20	)
Agenerase, Lexiva			160				2				83				(1	)			61				—				16				40
Epivir			139				(20	)			47				(19	)			58				(22	)			34				(18	)
Ziagen			106				(11	)			45				(9	)			36				(11	)			25				(14	)
Valtrex			1,195				16				870				20				144				9				181				4
Zeffix			188				—				15				8				27				—				146				(1	)
Relenza			57				(80	)			20				(86	)			6				(92	)			31				(49	)
Central nervous system			2,897				(21	)			1,815				(29	)			565				(1	)			517				(3	)
Lamictal			926				(22	)			711				(26	)			147				(8	)			68				2
Imigran/Imitrex			687				(8	)			550				(9	)			96				(3	)			41				(8	)
Seroxat/Paxil			514				(19	)			79				(49	)			115				(14	)			320				(7	)
Wellbutrin			342				(40	)			310				(44	)			18				>100				14				8
Requip			266				(31	)			102				(60	)			133				29				31				65
Requip XL			43				—				9				—				34				—				—				—
Treximet			25				—				25				—				—				—				—				—
Cardiovascular and urogenital			1,847				8				1,107				6				512				10				228				15
Avodart			399				27				242				27				118				21				39				48
Lovaza			290				>100				289				>100				—				—				1				—
Coreg			203				(68	)			200				(68	)			—				—				3				(67	)
Coreg CR			165				73				163				72				—				—				2				—
Coreg IR			38				(93	)			37				(93	)			—				—				1				(83	)
Fraxiparine			226				7				—				—				178				—				48				36
Arixtra			170				53				88				49				71				56				11				67
Vesicare			71				32				71				32				—				—				—				—
Levitra			60				12				57				11				3				—				—				—
Metabolic			1,191				(28	)			590				(39	)			294				(11	)			307				(14	)
Avandia products			805				(40	)			434				(49	)			198				(22	)			173				(25	)
Avandia			512				(46	)			299				(53	)			82				(33	)			131				(30	)
Avandamet			256				(21	)			109				(32	)			111				(13	)			36				—
Bonviva/Boniva			237				34				156				25				74				48				7				>100
Anti-bacterials			1,429				(2	)			174				(17	)			635				(6	)			620				7
Augmentin			587				—				49				(31	)			272				—				266				11
Altabax			16				36				15				27				1				—				—				—
Oncology and emesis			496				(6	)			243				(17	)			169				9				84				9
Hycamtin			140				7				81				7				49				5				10				11
Zofran			110				(51	)			3				(97	)			63				(21	)			44				(17	)
Tykerb			102				80				47				22				42				>100				13				>100
Vaccines			2,539				15				629				(7	)			1,155				28				755				21
Hepatitis			665				14				275				28				263				—				127				16
Infanrix/Pediarix			682				12				212				1				377				21				93				11
Fluarix, FluLaval			215				11				85				(20	)			78				63				52				37
Flu-prepandemic			66				(55	)			1				(99	)			64				25				1				—
Cervarix			125				>100				—				—				104				>100				21				>100
Rotarix			167				71				21				—				43				61				103				46
Boostrix			70				(5	)			35				(20	)			26				21				9				14
Other			959				(3	)			16				(78	)			321				14				622				(1	)
			20,381				(3	)			8,894				(11	)			6,483				3				5,004				5

Pharmaceutical turnover includes co-promotion income.

Issued: Thursday, 5th February 2009, London, U.K.		12

PRESS RELEASE

Regional pharmaceuticals turnover

		2008
		£m				CER%
USA			8,894				(11	)
Europe			6,483				3
Rest of World			5,004				5
Asia Pacific/Japan			1,918				(1	)
Emerging Markets			2,290				12
			20,381				(3	)

Consumer Healthcare turnover

Year ended 31st December 2008

		Total								USA								Europe								Rest of World
		£m				CER%				£m				CER%				£m				CER%				£m				CER%
Over-the-counter medicines			1,935				(2	)			630				(18	)			607				4				698				14
Panadol franchise			324				12				—				—				79				6				245				14
Smoking cessation products			299				(12	)			213				(11	)			60				(23	)			26				5
Tums			91				(5	)			78				(6	)			1				—				12				10
Cold sore franchise			89				3				41				—				38				6				10				—
Breathe Right			81				17				48				(6	)			20				>100				13				71
alli			75				(53	)			71				(57	)			—				—				4				>100
Oral healthcare			1,240				6				222				2				691				6				327				10
Aquafresh franchise			452				3				84				(3	)			275				2				93				10
Sensodyne franchise			363				12				68				13				175				11				120				14
Dental healthcare			271				8				63				—				110				13				98				8
Nutritional healthcare			796				8				—				—				481				2				315				18
Lucozade			382				7				—				—				336				5				46				27
Horlicks			204				13				—				—				22				(12	)			182				17
Ribena			161				—				—				—				121				(2	)			40				9
			3,971				3				852				(14	)			1,779				4				1,340				14

Issued: Thursday, 5th February 2009, London, U.K.		13

PRESS RELEASE

GSK’s late-stage pharmaceuticals and vaccines pipeline

The table below is provided as part of GSK’s quarterly update to show events and changes to the late stage pipeline during the quarter and up to the date of announcement.

The following assets were listed approved in the last quarterly update and are no longer included in the table: Treximet, Volibris, ReQuip XL, Tykerb refractory breast cancer, Avodart co-prescription with tamsulosin, Promacta short-term ITP, Seretide/Advair COPD exacerbation, Entereg, Rotarix, Kinrix.

Biopharmaceuticals				USA		EU		News update in the quarter
mepolizumab		HES		Ph III		Filed		US filing strategy under review.
						Sept 2008
ofatumumab		CLL		Filed Jan 2009		Ph III		Filed in USA for refractory CLL on 30th Jan 2009 Phase III front-line CLL study started in Jan 2009.
		NHL		Ph III		Ph III
		RA		Ph III		Ph III
belimumab		Lupus		Ph III		Ph III
otelixizumab		Type 1 diabetes		Ph III		Ph III
Syncria		Type 2 diabetes		Ph II/III		Ph II/III		Phase III studies to start in Q1 2009.
Cardiovascular & Metabolic				USA		EU		News update in the quarter
Arixtra		Acute Coronary Syndromes		Filed		Approved Aug 2007
Avandamet XR		Type II diabetes		Ph III		Ph III		Filing strategy under review.
Avandia + statin		Type II diabetes		Ph III		Ph III		Filing strategy under review.
Coreg CR + ACEi		Hypertension		n/a		n/a		Development terminated.
darapladib		Atherosclerosis		Ph III		Ph III		Phase III STABILITY study started Dec 2008.
Neurosciences				USA		EU		News update in the quarter
Lamictal XR		Epilepsy		Filed		n/a
Lunivia		Sleep disorders		n/a		Filed		CHMP Positive Opinion 24th Oct 2008. Sepracor appealed NAS rejection.
Solzira		RLS		Filed		Ph III		Refiled with FDA on 9th Jan 2009.
almorexant		Primary insomnia		Ph III		Ph III
retigabine		Epilepsy		Ph III		Ph III
rosiglitazone XR		Alzheimer’s disease		Ph III		Ph III
Oncology				USA		EU		News update in the quarter
Promacta/Revolade		Chronic ITP		Approved Nov 2008		Filed Dec 2008		Approved for chronic use in USA 20th Nov 2008. Filed in EU 5th Dec 2008. Long term RAISE study data presented at ASH in Dec 2008.
		Hepatitis C / CLD		Ph III		Ph III
Avodart		Prostate cancer prevention		Ph III		Ph III
		Duodart (fixed dose		Ph III		Filed		Filed in EU 15th Dec 2008.
		combination with				Dec 2008
		tamsulosin)
Rezonic/Zunrisa		CINV/PONV		Filed		Filed		Additional data supplied to FDA.
				May 2008		July 2008

Issued: Thursday, 5th February 2009, London, U.K.		14

PRESS RELEASE

Oncology /contd.				USA		EU		News update in the quarter
pazopanib		Renal cell cancer		Filed		Ph III		Filed in USA 22nd Dec 2008.
				Dec 2008
		Sarcoma		Ph III		Ph III
elesclomol		Metastatic melanoma		Ph III		Ph III
pazopanib + Tykerb		Inflammatory breast cancer		Ph III		Ph III		Data presented at San Antonio in Dec 2008 from VEG 20007.
Tykerb		First-line / Adjuvant breast cancer		Ph III		Ph III		30008 study data presented at San Antonio in Dec 2008.
		Head & neck cancer		Ph III		Ph III
		Gastric Cancer		Ph III		Ph III

Vaccines				USA		EU		News update in the quarter
Cervarix		HPV prophylaxis		Filed		Approved
						Sep 2007
Prepandrix		H5N1 pandemic influenza		Ph III		Approved
		prophylaxis				May 2008
Synflorix		S pneumoniae and NTHi prophylaxis		Ph III		Filed		CHMP Positive Opinion 22nd Jan 2009. US filing strategy under review.
MAGE-A3		NSCLC		Ph III		Ph III
HibMenCY-TT		MenCY and Hib prophylaxis		Ph III		n/a
MenACWY		MenACWY prophylaxis		Ph III		Ph III
New generation flu		Influenza prophylaxis		Ph III		Ph III
Simplirix		Genital herpes prophylaxis		Ph III		Ph III

Issued: Thursday, 5th February 2009, London, U.K.		15

PRESS RELEASE

Income statement

Three months ended 31st December 2008

																		Results
		Results																before major
		before major								Major								restructuring				Major				Total
		restructuring								restructuring				Total				Q4 2007				restructuring				Q4 2007
		Q4 2008				Growth				Q4 2008				Q4 2008				(restated)				Q4 2007				(restated)
		£m				CER%				£m				£m				£m				£m				£m
Turnover:
Pharmaceuticals			5,803				(4	)							5,803				5,027								5,027
Consumer Healthcare			1,107				2								1,107				947								947
TURNOVER			6,910				(3	)							6,910				5,974								5,974
Cost of sales			(1,642	)			(2	)			(311	)			(1,953	)			(1,528	)			(111	)			(1,639	)
Gross profit			5,268				(4	)			(311	)			4,957				4,446				(111	)			4,335
Selling, general and administration			(2,205	)			(14	)			(91	)			(2,296	)			(1,686	)			(137	)			(1,823	)
Research and development			(1,090	)			(1	)			(122	)			(1,212	)			(953	)			(90	)			(1,043	)
Other operating income			133												133				119								119
Operating profit:
Pharmaceuticals			1,818				(25	)			(515	)			1,303				1,707				(334	)			1,373
Consumer Healthcare			288				9				(9	)			279				219				(4	)			215
OPERATING PROFIT			2,106				(21	)			(524	)			1,582				1,926				(338	)			1,588
Finance income			37												37				52								52
Finance expense			(238	)							(3	)			(241	)			(119	)							(119	)
Share of after tax profits of associates and joint ventures			18												18				10								10
PROFIT BEFORE TAXATION			1,923				(28	)			(527	)			1,396				1,869				(338	)			1,531
Taxation			(532	)							153				(379	)			(532	)			77				(455	)
Tax rate %			27.7	%											27.1	%			28.5	%							29.7	%
PROFIT AFTER TAXATION FOR THE PERIOD			1,391				(27	)			(374	)			1,017				1,337				(261	)			1,076
Profit attributable to minority interests			35												35				19				—				19
Profit attributable to shareholders			1,356								(374	)			982				1,318				(261	)			1,057
			1,391								(374	)			1,017				1,337				(261	)			1,076
EARNINGS PER SHARE			26.7	p			(23	)							19.3	p			24.4	p							19.6	p
Diluted earnings per share			26.6	p											19.2	p			24.2	p							19.4	p