GlaxoSmithKline Q2 beats despite Advair hit, lower margins

LONDON, July 29 (Reuters) - A further slide in sales of lung drug Advair and lower profit margins following a business overhaul hit GlaxoSmithKline (Other OTC: GLAXF - news) in the second quarter, although core earnings per share fell by a less-than-expected 9 percent.

The drugmaker recently sold its marketed cancer drugs to Novartis (Xetra: 904278 - news) and bought the Swiss group's vaccines, while increasing its consumer health business through a joint venture.

The revamp is designed to ensure sustainable growth, after past profit misses, but the strategy will take time to pay off and GSK on Wednesday reiterated its forecast for a high-teens percentage decline in 2015 earnings, at constant exchange rates.

In sterling terms, sales rose 6 percent to 5.9 billion pounds ($9.2 billion), reflecting the first full quarter that included products previously owned by Novartis.

Core earnings fell to 17.3 pence a share, however, because of lower returns on Advair and the fact GSK has swapped high-margin cancer drugs for less profitable consumer products.

Analysts, on average, had forecast sales of 5.9 billion pounds and core EPS, which excludes certain items, of 16.7p, according to Thomson Reuters (Dusseldorf: TOC.DU - news) . ($1 = 0.6395 pounds) (Reporting by Ben Hirschler; Editing by Martinne Geller)