Drugmaker GSK sees earnings growth returning in 2016

LONDON (AP) — Britain-based drugmaker GlaxoSmithKline has reported a drop in earnings in the first full quarter since its deal to swap some assets with Swiss rival Novartis.

Second-quarter net income fell to 149 million pounds from 654 million pounds a year earlier, while sales rose 6 percent to 5.89 billion pounds.

CEO Andrew Witty described the performance as encouraging, with plans on track to integrate and restructuring operations it took over from Novartis in April. In the deal, GSK agreed to sell its cancer-drug business to Novartis in a swap for the Swiss company's vaccines business and cash.

Synergy benefits are expected when the transaction begins to contribute more meaningfully.