Results Announcement For The First Quarter 2001

GlaxoSmithKline's Strong Pharmaceuticals Performance Delivers Earnings Per

Share Growth of 22% (13% at Constant Exchange Rates)



Apr 24, 2001, 01:00 ET from GlaxoSmithKline plc

    LONDON, April 24 /PRNewswire Interactive News Release/ --
  GlaxoSmithKline plc (NYSE:   GSK) today announces its results for the first
 quarter ended 31st March 2001. The business performance results are summarized
 below.
 
                                          BUSINESS PERFORMANCE RESULTS
                                     Q1 2001         Q1 2000        Increase
                                        $m              $m            CER%
 
     Sales                             6,898           6,587           9
     Trading Profit                    1,985           1,855          10
     Profit Before Tax                 2,013           1,877          11
     Earnings Per ADS                  $0.47           $0.43          13
 
                                     HIGHLIGHTS
 
      -- Pharmaceutical sales up 11% (excluding divested products), driven by
      strong US growth of 14%.
 
         -- New products up 34% led by Avandia, Combivir and Seretide/Advair.
 
         -- Respiratory business up 21% to $1,134m driven by the strong
            performance of Seretide in Europe; Advair launched in USA on 16th
            April.
 
         -- Seroxat/Paxil up 17%; US approval for Generalised Anxiety Disorder
            received 16th April.
 
      -- Augmentin performed well, up 19%, powered by US growth of 31%.
 
      -- Acquisition of Block Drug contributed $209 million of sales in
         Consumer Healthcare.
 
      -- Merger savings in line with expectations of at least $580
         million in 2001.
 
      -- GSK on track to meet 2001 business performance earnings per share
         growth target of around 13%.
 
     Commenting on the performance for the quarter, Jean-Pierre Garnier, Chief
 Executive Officer, said:
 
     "GlaxoSmithKline has demonstrated strong momentum in this first set of
 results delivered by the new company. The performance reflects particularly
 
 healthy sales in the USA and strong contributions from our new products (up
 34%). We are excited by the new opportunities provided by approval of Paxil
 for Generalised Anxiety Disorder (GAD) and the launch of Advair in the USA. We
 are satisfied with the progress of integration and are generating cost savings
 in line with expectations. The company is on track to deliver earnings per
 share growth in 2001 of around 13% as we projected in February."
 
     Business performance results exclude merger items, integration and
 restructuring costs and business disposals.  Growth rates are at constant
 exchange rates (CER) unless otherwise stated.
 
 
     Pharmaceuticals
     Pharmaceuticals growth of 11% CER was led by 14% growth in US sales to
 nearly $3 billion. US sales growth was consistent with underlying prescription
 growth and was driven by strong performance of our major products. Europe grew
 at 6% to $1.6 billion, driven by CNS and Respiratory products. Rest of World
 markets grew 10% to nearly $1.2 billion, led by strong growth in Asia Pacific,
 Canada and Japan.
 
     GSK's largest category, CNS, up 17% with strong growth across all regions
     Seroxat/Paxil increased sales to $629 million in Q1 and is now the leading
 selective serotonin reuptake inhibitor (SSRI) worldwide. On 16th April Paxil
 received US FDA approval for the treatment of Generalised Anxiety Disorder
 (GAD), making it the first and only SSRI approved for this condition in the
 USA. This new indication will further differentiate Paxil through its broad
 range of indications. US Wellbutrin sales increased 24% outperforming growth
 in the US depression market of 16% in the same period. Total prescriptions for
 Imitrex in the USA increased 7% in the quarter, although reported sales were
 down 2% reflecting wholesaler de-stocking in the quarter. Zyban continued its
 successful rollout in Europe.
 
     Key asthma products - Seretide, Flixotide/Flovent, Serevent - combined
 grew 36% to nearly $750 million
     The strong respiratory performance was driven by the continued success of
 the combination product, Seretide, in Europe where sales more than doubled;
 and by strong growth of the individual products, Flixotide/Flovent and
 Serevent, in the USA. Serevent sales benefited from increased promotional
 spend in the USA coupled with a DTC campaign on COPD launched in January 2001.
 Flixotide/Flovent continued to expand its leadership position in the inhaled
 corticosteroid market. Seretide/Advair was launched in the USA on 16th April,
 where it will build on the success established by Serevent and Flovent. The
 launch is supported by an intensive marketing effort including a sales force
 of 2,300 representatives.
 
     Anti-bacterials grew especially strongly in the USA
     Augmentin grew by 19% overall and in the USA by 31%, driven by continued
 physician recognition of Augmentin's track record of effectiveness. Following
 the FDA Advisory Committee meeting in January the company hopes to launch
 Augmentin ES in time for the next flu season. The growth of Augmentin was
 partially offset by declines in older antibiotic products.
 
     Anti-virals growth driven by HIV portfolio
     HIV sales increased by a robust 12% with new products continuing to
 generate good growth in Europe and the Rest of the World. In the USA total
 prescription growth for the first quarter for all GSK HIV products was strong
 at 19%, in a market that was growing at 14%; however, sales were up 4%
 reflecting wholesaler stocking patterns. Trizivir has made a good start
 following its initial launch in the USA in December 2000, with European
 launches in Germany, France and the UK in Q1 2001.  Zeffix also performed
 well, with sales growth of 73%, mostly from the Asia Pacific region which
 accounts for over 90% of the world's hepatitis B population. A poor
 performance from Relenza negatively impacted the overall growth of the anti-
 virals sector.
 
 
     Metabolic & Gastro-intestinal - Avandia grew by an impressive 43%
     Avandia continues to be the leading medicine in its category in the USA.
 It has also had a good start in Europe, with further launches to come in
 Spain, Italy and France later this year. In less than two years on the US
 market Avandia has been used by nearly 2 million patients. The overall growth
 of the metabolic & gastro-intestinal sector was impacted by the loss of
 contribution from Lotronex and the continued decline of Zantac.
 
     Vaccines - Total sales of vaccines grew 6% to $304 million
     Infanrix was the main driver of growth in all regions, with sales up 38%.
 Sales of hepatitis vaccines were down in Europe and Rest of World markets due
 to comparison with a strong quarter a year ago and the recent introduction in
 Europe of paediatric combination vaccines which provide protection against
 hepatitis B.  These include GSK's Infanrix and a competitor vaccine.  Sales of
 hepatitis vaccines in the USA increased 26%, driven by Engerix-B.
 
     Cardiovascular - Coreg total sales grew 76% to $71 million
     The company filed for a severe heart failure indication in the USA in
 March 2001, and has been granted priority review by the FDA.  This filing is
 based on results from the COPERNICUS trial, which showed a 35% mortality
 benefit. In March, results of a landmark study, CAPRICORN, demonstrated that
 long-term treatment with Coreg, in addition to other medications, can reduce
 the risk of another heart attack by 41%.
 
     Consumer Healthcare
     Consumer Healthcare sales declined 2%, excluding the Block Drug portfolio
 which contributed additional sales of $209 million, to raise reported sales
 growth to 19%.
     Worldwide sales of Oral Care products, excluding Block Drug, outpaced the
 market, growing 4% to $228 million, with Aquafresh up 4% and Odol up 15%.
     Nutritional Healthcare products increased 5% to $190 million, led by a
 strong performance in India.
     Worldwide sales of over-the-counter medicines were $497 million, down 7%
 from last year, due to increased private label competition among Smoking
 Control products in the USA that led to a 25% reduction in US sales.
 Worldwide sales of Respiratory Tract products were down 21%.  Partially
 offsetting these reductions was the newly launched cold sore medication in the
 USA, Abreva, which achieved sales of over $10 million for the quarter, a 28%
 market share.
     The acquisition of Block Drug was completed in January 2001. Worldwide
 integration is on target.
     Consumer Healthcare trading profit increased 11%, reflecting the
 contribution from Block Drug.
 
     Merger and restructuring
     GSK has continued to implement the manufacturing restructuring plans
 initiated by both SmithKline Beecham and Glaxo Wellcome and is proceeding with
 the integration of the SB and GW businesses in accordance with the plans
 developed during 2000.  Merger savings are in line with expectations of at
 least $580 million in 2001.
     Costs of $502 million were incurred in the quarter in respect of merger,
 integration and restructuring.  After tax relief of $77 million, the net
 charge was $425 million. Together with business performance earnings of $1,423
 million, this produces total earnings of $998 million for the quarter.
 
     Dividend
     The Board has declared a first quarter interim dividend of 9 pence per
 share. The equivalent dividend receivable by ADR holders is 25.857 cents per
 ADS based on an exchange rate of pounds1/$1.43648. The dividend will be paid
 on 5th July 2001 to shareholders and ADR holders of record on 4th May 2001.
 Subject to no material unforeseen circumstances, it is expected that GSK will
 pay a level sterling dividend for each of the first three quarters, with any
 increase in total dividend being taken in the fourth quarter.
 
     GlaxoSmithKline -- 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.  For company information, visit GSK on the World Wide Web at
 www.gsk.com.
 
     Enquiries: UK Media                      Martin Sutton   (020) 8966 8000
                                             Philip Thomson   (020) 8966 8000
                                              Alan Chandler   (020) 8975 2290
 
                US Media                      Nancy Pekarek   (215) 751 7709
                                            Mary Anne Rhyne   (919) 483 2839
 
                European Analyst/Investor    Jennie Younger   (020) 8966 8378
                                           Duncan Learmouth   (020) 8966 5961
                                              Anita Kidgell   (020) 8966 8369
 
                US Analyst / Investor         Frank Murdolo   (215) 751 7002
                                                  Tom Curry   (215) 751 5419
 
     GSK prepares its financial results in pounds sterling.  Accordingly the
 Results Announcement is issued in # sterling.  This document is a convenience
 translation in US$ translated from sterling at the pounds/US$ rates set out
 under "Exchange Rates."  Both pounds sterling and US$ versions of the
 Announcement are available on "Corporate Home" at www.gsk.com.
 
     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 Operating and
 Financial Review and Prospects in the Company's Annual Report on Form 20-F for
 2000, filed with the US Securities and Exchange Commission.
 
                            PROFIT AND LOSS ACCOUNT
                                    Q1 2001
 
                                              Merger,
                                            integration
                                         and restructuring
                                           and business
                  Business performance       disposals           Total
                     ______________       ______________    _______________
 
                        Q1     Q1                Q1     Q1      Q1      Q1
                       2001   2000              2001   2000    2001    2000
                        $m     $m        CER%    $m     $m      $m      $m
     Sales:           _____   ____      _____  _____   _____   _____   ____
     Pharma-
      ceuticals
      - Existing
        portfolio     5,774    5,419     11       -     -     5,774   5,419
      - Divested
         products         -      163              -     -         -     163
                      _____    _____          _____ _____     _____   _____
 
     Total            5,774    5,582      8       -     -     5,774   5,582
     Consumer
      Healthcare                                  -     -
      - Existing
        portfolio       915      995     (2)      -     -       915     995
      - Acquisition
 
        - Block Drug    209        -              -     -       209       -
                      _____    _____          _____ _____     _____   _____
                      1,124      995     20       -     -     1,124     995
 
     - Divested
        products          -       10              -     -         -      10
                      _____    _____          _____ _____     _____   _____
      - Total         1,124    1,005     19       -     -     1,124   1,005
                      _____    _____          _____ _____     _____   _____
     SALES            6,898    6,587      9       -     -     6,898   6,587
 
     Cost of
      sales          (1,476)  (1,365)   (15)    (39)  (29)   (1,515) (1,394)
                      _____    _____          _____ _____     _____   _____
     Gross
      profit          5,422    5,222      8     (39)  (29)    5,383   5,193
     Selling,
      general and
      administration (2,587)  (2,496)    (8)   (448)  (16)   (3,035) (2,512)
 
     Research
      and development  (850)    (871)    (3)    (13)    -      (863)   (871)
                      _____    _____          _____ _____     _____   _____
     Trading
      profit:
     Pharmaceuticals  1,840    1,716     10    (477)  (42)    1,363   1,674
     Consumer
      Healthcare        145      139     11     (23)   (3)      122     136
                      _____    _____          _____ _____     _____   _____
 
     TRADING
      PROFIT          1,985    1,855     10    (500)  (45)    1,485   1,810
 
     Other
      operating
      income/
     (expense)           35     72                -     -        35      72
                      _____   _____           _____  _____     _____   _____
     Operating
      profit          2,020   1,927       9    (500)   (45)    1,520   1,882
     Profits/(losses)
      of associates      22      19              -     (8)       22      11
     Business
      disposal            -       -             (2)     -        (2)      -
     Merger
      transaction
      costs               -       -              -    (11)        -     (11)
                      _____   _____          _____  _____     _____   _____
     Profit
      before
      interest        2,042   1,946           (502)   (64)    1,540   1,882
     Net
      interest
      payable           (29)    (69)             -      -       (29)    (69)
                      _____   _____          _____  _____     _____   _____
 
     PROFIT
      BEFORE
      TAXATION        2,013   1,877       11  (502)   (64)    1,511   1,813
 
     Taxation          (538)   (512)      (8)   77     14      (461)   (498)
                      _____   _____          _____  _____     _____   _____
     Profit
      after
 
      taxation        1,475   1,365       12  (425)   (50)    1,050   1,315
     Minority
      interests         (33)    (47)             -      -       (33)    (47)
     Preference share
      dividends         (19)    (19)             -      -       (19)    (19)
                      _____   _____          _____  _____     _____   _____
 
     EARNINGS         1,423   1,299       13  (425)   (50)      998   1,249
                     ======  ======         ====== ======    ======  ======
 
     EARNINGS
      PER ADS         $0.47   $0.43       13                  $0.33   $0.41
                     ======   ======                         ======   ======
 
     To illustrate "Business performance", merger items, integration and
 restructuring costs and business disposals have been excluded and an adjusted
 EPS presented. Appropriations of profit attributable to shareholders are set
 out under "Appropriations".
 
 
                           SALES - EXISTING PORTFOLIO
                                    Q1 2001
 
                       Total         USA          Europe          RoW
     Pharmaceuticals $m     CER%   $m    CER%    $m    CER%    $m      CER%
 
 
     CENTRAL
      NERVOUS
      SYSTEM      1,307      17   903     13     276    24     128      40
     Depression     818      19   613     17     132    19      73      32
     Seroxat/
      Paxil         629      17   430     15     132    19      67      32
     Wellbutrin     189      25   183     24       -     -       6      38
 
     Migraine       254       1   182      -      57     3      15       6
     Imigran/
      Imitrex       224      (1)  165     (2)     47     -      12       -
     Naramig/
      Amerge         30      21    17     20      10    18       3      43
 
     Lamictal       108      18    51     22      45    14      12      17
     Requip          25      31    12     39      12    26       1      26
     Zyban           67    >100    22    (20)     23  >100      22    >100
 
     Respiratory  1,134      21   479     33     448    12     207      20
     Flixotide/
      Flovent       340      18   177     40     104    (9)     59      31
     Serevent       263      25   155     58      93    (4)     15       9
     Seretide       142    >100     -      -     123  >100      19    >100
     Flixonase/
      Flonase       183      27   122     28      19    16      42      30
     Ventolin       104      (5)   10     36      48   (13)     46      (1)
     Becotide        61     (28)    -      -      48   (15)     13     (34)
 
     ANTI-
      Bacterials  1,030       5   558     18     273    (6)    199      (7)
     Augmentin      584      19   393     31     129    (2)     62       8
     Zinnat/Ceftin  162     (12)   80    (18)     46    (4)     36      (6)
     Fortum          73      (9)   13    (25)     32   (10)     28       2
     Amoxil          64     (17)   22      9      22   (27)     20     (23)
 
     ANTI-VIRALS    686       5   328      1     213     7     145      15
     HIV            432      12   242      4     144    20      46      43
 
     Trizivir        26       -    19      -       7     -       -       -
     Combivir       211      15   122      6      70    19      19      89
     Epivir         105      (6)   51    (14)     38    (2)     16      15
     Retrovir        17     (20)    7    (23)      7   (14)      3     (22)
     Ziagen          56      10    30    (12)     19    46       7      81
     Agenerase       17      (3)   13    (17)      3    76       1    >100
 
     Herpes         215       6    75     19      62    (2)     78       2
     Valtrex        110      47    62     36      28    26      20    >100
     Zovirax        106     (18)   13    (27)     35   (16)     58     (16)
 
     Zeffix          31      73     1     43       4    71      26      75
 
     METABOLIC &
      GastrO-
     Intestinal     493       7   232      7     110    (4)    151      15
     Avandia        219      43   196     32      10  >100      13    >100
     Zantac         176     (10)   36    (16)     62   (16)     78      (2)
 
     VACCINES       304       6    87     37     126    (6)     91       6
     Hepatitis      157      (8)   64     26      61   (24)     32     (15)
     Infanrix        76      38    22   >100      39    15      15      41
 
     ONCOLOGY
      & EMESIS      263      10   186     12      52    11      25      (1)
     Zofran         192      15   135     16      38    19      19       1
     Hycamtin        31      (2)   19     (4)      9     6       3     (13)
 
     CARDIO-
      VASCULAR      181      25   113     35      45    12      23       9
     Coreg           71      76    68     89       -     -       3     (35)
 
     ARTHRITIS
      (Relafen)      73      (1)   65      4       4   (37)      4     (21)
 
     OTHER          303      (4)    8    (79)     86     -     209       6
                   ____________ _____________    ___________   ___________
 
                  5,774      11 2,959     14   1,633     6   1,182      10
                  ============= =============  =============  =============
 
 
     Consumer Healthcare
 
     Over-the-counter medicines                497                  (7)
     Oral care                                 228                   4
     Nutritional healthcare                    190                   5
                                            ______              ______
                                               915                  (2)
     Block Drug                                209
                                        ==========          ==========
                                             1,124
 
 
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SOURCE GlaxoSmithKline plc
    LONDON, April 24 /PRNewswire Interactive News Release/ --
  GlaxoSmithKline plc (NYSE:   GSK) today announces its results for the first
 quarter ended 31st March 2001. The business performance results are summarized
 below.
 
                                          BUSINESS PERFORMANCE RESULTS
                                     Q1 2001         Q1 2000        Increase
                                        $m              $m            CER%
 
     Sales                             6,898           6,587           9
     Trading Profit                    1,985           1,855          10
     Profit Before Tax                 2,013           1,877          11
     Earnings Per ADS                  $0.47           $0.43          13
 
                                     HIGHLIGHTS
 
      -- Pharmaceutical sales up 11% (excluding divested products), driven by
      strong US growth of 14%.
 
         -- New products up 34% led by Avandia, Combivir and Seretide/Advair.
 
         -- Respiratory business up 21% to $1,134m driven by the strong
            performance of Seretide in Europe; Advair launched in USA on 16th
            April.
 
         -- Seroxat/Paxil up 17%; US approval for Generalised Anxiety Disorder
            received 16th April.
 
      -- Augmentin performed well, up 19%, powered by US growth of 31%.
 
      -- Acquisition of Block Drug contributed $209 million of sales in
         Consumer Healthcare.
 
      -- Merger savings in line with expectations of at least $580
         million in 2001.
 
      -- GSK on track to meet 2001 business performance earnings per share
         growth target of around 13%.
 
     Commenting on the performance for the quarter, Jean-Pierre Garnier, Chief
 Executive Officer, said:
 
     "GlaxoSmithKline has demonstrated strong momentum in this first set of
 results delivered by the new company. The performance reflects particularly
 
 healthy sales in the USA and strong contributions from our new products (up
 34%). We are excited by the new opportunities provided by approval of Paxil
 for Generalised Anxiety Disorder (GAD) and the launch of Advair in the USA. We
 are satisfied with the progress of integration and are generating cost savings
 in line with expectations. The company is on track to deliver earnings per
 share growth in 2001 of around 13% as we projected in February."
 
     Business performance results exclude merger items, integration and
 restructuring costs and business disposals.  Growth rates are at constant
 exchange rates (CER) unless otherwise stated.
 
 
     Pharmaceuticals
     Pharmaceuticals growth of 11% CER was led by 14% growth in US sales to
 nearly $3 billion. US sales growth was consistent with underlying prescription
 growth and was driven by strong performance of our major products. Europe grew
 at 6% to $1.6 billion, driven by CNS and Respiratory products. Rest of World
 markets grew 10% to nearly $1.2 billion, led by strong growth in Asia Pacific,
 Canada and Japan.
 
     GSK's largest category, CNS, up 17% with strong growth across all regions
     Seroxat/Paxil increased sales to $629 million in Q1 and is now the leading
 selective serotonin reuptake inhibitor (SSRI) worldwide. On 16th April Paxil
 received US FDA approval for the treatment of Generalised Anxiety Disorder
 (GAD), making it the first and only SSRI approved for this condition in the
 USA. This new indication will further differentiate Paxil through its broad
 range of indications. US Wellbutrin sales increased 24% outperforming growth
 in the US depression market of 16% in the same period. Total prescriptions for
 Imitrex in the USA increased 7% in the quarter, although reported sales were
 down 2% reflecting wholesaler de-stocking in the quarter. Zyban continued its
 successful rollout in Europe.
 
     Key asthma products - Seretide, Flixotide/Flovent, Serevent - combined
 grew 36% to nearly $750 million
     The strong respiratory performance was driven by the continued success of
 the combination product, Seretide, in Europe where sales more than doubled;
 and by strong growth of the individual products, Flixotide/Flovent and
 Serevent, in the USA. Serevent sales benefited from increased promotional
 spend in the USA coupled with a DTC campaign on COPD launched in January 2001.
 Flixotide/Flovent continued to expand its leadership position in the inhaled
 corticosteroid market. Seretide/Advair was launched in the USA on 16th April,
 where it will build on the success established by Serevent and Flovent. The
 launch is supported by an intensive marketing effort including a sales force
 of 2,300 representatives.
 
     Anti-bacterials grew especially strongly in the USA
     Augmentin grew by 19% overall and in the USA by 31%, driven by continued
 physician recognition of Augmentin's track record of effectiveness. Following
 the FDA Advisory Committee meeting in January the company hopes to launch
 Augmentin ES in time for the next flu season. The growth of Augmentin was
 partially offset by declines in older antibiotic products.
 
     Anti-virals growth driven by HIV portfolio
     HIV sales increased by a robust 12% with new products continuing to
 generate good growth in Europe and the Rest of the World. In the USA total
 prescription growth for the first quarter for all GSK HIV products was strong
 at 19%, in a market that was growing at 14%; however, sales were up 4%
 reflecting wholesaler stocking patterns. Trizivir has made a good start
 following its initial launch in the USA in December 2000, with European
 launches in Germany, France and the UK in Q1 2001.  Zeffix also performed
 well, with sales growth of 73%, mostly from the Asia Pacific region which
 accounts for over 90% of the world's hepatitis B population. A poor
 performance from Relenza negatively impacted the overall growth of the anti-
 virals sector.
 
 
     Metabolic & Gastro-intestinal - Avandia grew by an impressive 43%
     Avandia continues to be the leading medicine in its category in the USA.
 It has also had a good start in Europe, with further launches to come in
 Spain, Italy and France later this year. In less than two years on the US
 market Avandia has been used by nearly 2 million patients. The overall growth
 of the metabolic & gastro-intestinal sector was impacted by the loss of
 contribution from Lotronex and the continued decline of Zantac.
 
     Vaccines - Total sales of vaccines grew 6% to $304 million
     Infanrix was the main driver of growth in all regions, with sales up 38%.
 Sales of hepatitis vaccines were down in Europe and Rest of World markets due
 to comparison with a strong quarter a year ago and the recent introduction in
 Europe of paediatric combination vaccines which provide protection against
 hepatitis B.  These include GSK's Infanrix and a competitor vaccine.  Sales of
 hepatitis vaccines in the USA increased 26%, driven by Engerix-B.
 
     Cardiovascular - Coreg total sales grew 76% to $71 million
     The company filed for a severe heart failure indication in the USA in
 March 2001, and has been granted priority review by the FDA.  This filing is
 based on results from the COPERNICUS trial, which showed a 35% mortality
 benefit. In March, results of a landmark study, CAPRICORN, demonstrated that
 long-term treatment with Coreg, in addition to other medications, can reduce
 the risk of another heart attack by 41%.
 
     Consumer Healthcare
     Consumer Healthcare sales declined 2%, excluding the Block Drug portfolio
 which contributed additional sales of $209 million, to raise reported sales
 growth to 19%.
     Worldwide sales of Oral Care products, excluding Block Drug, outpaced the
 market, growing 4% to $228 million, with Aquafresh up 4% and Odol up 15%.
     Nutritional Healthcare products increased 5% to $190 million, led by a
 strong performance in India.
     Worldwide sales of over-the-counter medicines were $497 million, down 7%
 from last year, due to increased private label competition among Smoking
 Control products in the USA that led to a 25% reduction in US sales.
 Worldwide sales of Respiratory Tract products were down 21%.  Partially
 offsetting these reductions was the newly launched cold sore medication in the
 USA, Abreva, which achieved sales of over $10 million for the quarter, a 28%
 market share.
     The acquisition of Block Drug was completed in January 2001. Worldwide
 integration is on target.
     Consumer Healthcare trading profit increased 11%, reflecting the
 contribution from Block Drug.
 
     Merger and restructuring
     GSK has continued to implement the manufacturing restructuring plans
 initiated by both SmithKline Beecham and Glaxo Wellcome and is proceeding with
 the integration of the SB and GW businesses in accordance with the plans
 developed during 2000.  Merger savings are in line with expectations of at
 least $580 million in 2001.
     Costs of $502 million were incurred in the quarter in respect of merger,
 integration and restructuring.  After tax relief of $77 million, the net
 charge was $425 million. Together with business performance earnings of $1,423
 million, this produces total earnings of $998 million for the quarter.
 
     Dividend
     The Board has declared a first quarter interim dividend of 9 pence per
 share. The equivalent dividend receivable by ADR holders is 25.857 cents per
 ADS based on an exchange rate of pounds1/$1.43648. The dividend will be paid
 on 5th July 2001 to shareholders and ADR holders of record on 4th May 2001.
 Subject to no material unforeseen circumstances, it is expected that GSK will
 pay a level sterling dividend for each of the first three quarters, with any
 increase in total dividend being taken in the fourth quarter.
 
     GlaxoSmithKline -- 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.  For company information, visit GSK on the World Wide Web at
 www.gsk.com.
 
     Enquiries: UK Media                      Martin Sutton   (020) 8966 8000
                                             Philip Thomson   (020) 8966 8000
                                              Alan Chandler   (020) 8975 2290
 
                US Media                      Nancy Pekarek   (215) 751 7709
                                            Mary Anne Rhyne   (919) 483 2839
 
                European Analyst/Investor    Jennie Younger   (020) 8966 8378
                                           Duncan Learmouth   (020) 8966 5961
                                              Anita Kidgell   (020) 8966 8369
 
                US Analyst / Investor         Frank Murdolo   (215) 751 7002
                                                  Tom Curry   (215) 751 5419
 
     GSK prepares its financial results in pounds sterling.  Accordingly the
 Results Announcement is issued in # sterling.  This document is a convenience
 translation in US$ translated from sterling at the pounds/US$ rates set out
 under "Exchange Rates."  Both pounds sterling and US$ versions of the
 Announcement are available on "Corporate Home" at www.gsk.com.
 
     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 Operating and
 Financial Review and Prospects in the Company's Annual Report on Form 20-F for
 2000, filed with the US Securities and Exchange Commission.
 
                            PROFIT AND LOSS ACCOUNT
                                    Q1 2001
 
                                              Merger,
                                            integration
                                         and restructuring
                                           and business
                  Business performance       disposals           Total
                     ______________       ______________    _______________
 
                        Q1     Q1                Q1     Q1      Q1      Q1
                       2001   2000              2001   2000    2001    2000
                        $m     $m        CER%    $m     $m      $m      $m
     Sales:           _____   ____      _____  _____   _____   _____   ____
     Pharma-
      ceuticals
      - Existing
        portfolio     5,774    5,419     11       -     -     5,774   5,419
      - Divested
         products         -      163              -     -         -     163
                      _____    _____          _____ _____     _____   _____
 
     Total            5,774    5,582      8       -     -     5,774   5,582
     Consumer
      Healthcare                                  -     -
      - Existing
        portfolio       915      995     (2)      -     -       915     995
      - Acquisition
 
        - Block Drug    209        -              -     -       209       -
                      _____    _____          _____ _____     _____   _____
                      1,124      995     20       -     -     1,124     995
 
     - Divested
        products          -       10              -     -         -      10
                      _____    _____          _____ _____     _____   _____
      - Total         1,124    1,005     19       -     -     1,124   1,005
                      _____    _____          _____ _____     _____   _____
     SALES            6,898    6,587      9       -     -     6,898   6,587
 
     Cost of
      sales          (1,476)  (1,365)   (15)    (39)  (29)   (1,515) (1,394)
                      _____    _____          _____ _____     _____   _____
     Gross
      profit          5,422    5,222      8     (39)  (29)    5,383   5,193
     Selling,
      general and
      administration (2,587)  (2,496)    (8)   (448)  (16)   (3,035) (2,512)
 
     Research
      and development  (850)    (871)    (3)    (13)    -      (863)   (871)
                      _____    _____          _____ _____     _____   _____
     Trading
      profit:
     Pharmaceuticals  1,840    1,716     10    (477)  (42)    1,363   1,674
     Consumer
      Healthcare        145      139     11     (23)   (3)      122     136
                      _____    _____          _____ _____     _____   _____
 
     TRADING
      PROFIT          1,985    1,855     10    (500)  (45)    1,485   1,810
 
     Other
      operating
      income/
     (expense)           35     72                -     -        35      72
                      _____   _____           _____  _____     _____   _____
     Operating
      profit          2,020   1,927       9    (500)   (45)    1,520   1,882
     Profits/(losses)
      of associates      22      19              -     (8)       22      11
     Business
      disposal            -       -             (2)     -        (2)      -
     Merger
      transaction
      costs               -       -              -    (11)        -     (11)
                      _____   _____          _____  _____     _____   _____
     Profit
      before
      interest        2,042   1,946           (502)   (64)    1,540   1,882
     Net
      interest
      payable           (29)    (69)             -      -       (29)    (69)
                      _____   _____          _____  _____     _____   _____
 
     PROFIT
      BEFORE
      TAXATION        2,013   1,877       11  (502)   (64)    1,511   1,813
 
     Taxation          (538)   (512)      (8)   77     14      (461)   (498)
                      _____   _____          _____  _____     _____   _____
     Profit
      after
 
      taxation        1,475   1,365       12  (425)   (50)    1,050   1,315
     Minority
      interests         (33)    (47)             -      -       (33)    (47)
     Preference share
      dividends         (19)    (19)             -      -       (19)    (19)
                      _____   _____          _____  _____     _____   _____
 
     EARNINGS         1,423   1,299       13  (425)   (50)      998   1,249
                     ======  ======         ====== ======    ======  ======
 
     EARNINGS
      PER ADS         $0.47   $0.43       13                  $0.33   $0.41
                     ======   ======                         ======   ======
 
     To illustrate "Business performance", merger items, integration and
 restructuring costs and business disposals have been excluded and an adjusted
 EPS presented. Appropriations of profit attributable to shareholders are set
 out under "Appropriations".
 
 
                           SALES - EXISTING PORTFOLIO
                                    Q1 2001
 
                       Total         USA          Europe          RoW
     Pharmaceuticals $m     CER%   $m    CER%    $m    CER%    $m      CER%
 
 
     CENTRAL
      NERVOUS
      SYSTEM      1,307      17   903     13     276    24     128      40
     Depression     818      19   613     17     132    19      73      32
     Seroxat/
      Paxil         629      17   430     15     132    19      67      32
     Wellbutrin     189      25   183     24       -     -       6      38
 
     Migraine       254       1   182      -      57     3      15       6
     Imigran/
      Imitrex       224      (1)  165     (2)     47     -      12       -
     Naramig/
      Amerge         30      21    17     20      10    18       3      43
 
     Lamictal       108      18    51     22      45    14      12      17
     Requip          25      31    12     39      12    26       1      26
     Zyban           67    >100    22    (20)     23  >100      22    >100
 
     Respiratory  1,134      21   479     33     448    12     207      20
     Flixotide/
      Flovent       340      18   177     40     104    (9)     59      31
     Serevent       263      25   155     58      93    (4)     15       9
     Seretide       142    >100     -      -     123  >100      19    >100
     Flixonase/
      Flonase       183      27   122     28      19    16      42      30
     Ventolin       104      (5)   10     36      48   (13)     46      (1)
     Becotide        61     (28)    -      -      48   (15)     13     (34)
 
     ANTI-
      Bacterials  1,030       5   558     18     273    (6)    199      (7)
     Augmentin      584      19   393     31     129    (2)     62       8
     Zinnat/Ceftin  162     (12)   80    (18)     46    (4)     36      (6)
     Fortum          73      (9)   13    (25)     32   (10)     28       2
     Amoxil          64     (17)   22      9      22   (27)     20     (23)
 
     ANTI-VIRALS    686       5   328      1     213     7     145      15
     HIV            432      12   242      4     144    20      46      43
 
     Trizivir        26       -    19      -       7     -       -       -
     Combivir       211      15   122      6      70    19      19      89
     Epivir         105      (6)   51    (14)     38    (2)     16      15
     Retrovir        17     (20)    7    (23)      7   (14)      3     (22)
     Ziagen          56      10    30    (12)     19    46       7      81
     Agenerase       17      (3)   13    (17)      3    76       1    >100
 
     Herpes         215       6    75     19      62    (2)     78       2
     Valtrex        110      47    62     36      28    26      20    >100
     Zovirax        106     (18)   13    (27)     35   (16)     58     (16)
 
     Zeffix          31      73     1     43       4    71      26      75
 
     METABOLIC &
      GastrO-
     Intestinal     493       7   232      7     110    (4)    151      15
     Avandia        219      43   196     32      10  >100      13    >100
     Zantac         176     (10)   36    (16)     62   (16)     78      (2)
 
     VACCINES       304       6    87     37     126    (6)     91       6
     Hepatitis      157      (8)   64     26      61   (24)     32     (15)
     Infanrix        76      38    22   >100      39    15      15      41
 
     ONCOLOGY
      & EMESIS      263      10   186     12      52    11      25      (1)
     Zofran         192      15   135     16      38    19      19       1
     Hycamtin        31      (2)   19     (4)      9     6       3     (13)
 
     CARDIO-
      VASCULAR      181      25   113     35      45    12      23       9
     Coreg           71      76    68     89       -     -       3     (35)
 
     ARTHRITIS
      (Relafen)      73      (1)   65      4       4   (37)      4     (21)
 
     OTHER          303      (4)    8    (79)     86     -     209       6
                   ____________ _____________    ___________   ___________
 
                  5,774      11 2,959     14   1,633     6   1,182      10
                  ============= =============  =============  =============
 
 
     Consumer Healthcare
 
     Over-the-counter medicines                497                  (7)
     Oral care                                 228                   4
     Nutritional healthcare                    190                   5
                                            ______              ______
                                               915                  (2)
     Block Drug                                209
                                        ==========          ==========
                                             1,124
 
 
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 SOURCE  GlaxoSmithKline plc