EFTA Document EFTA01457559

11 May 2016 Pharmaceuticals GlaxoSmithKline • Margin pressures greater than expected. Core operating margin was under significant pressure in HI down 405bps over the prior period and modestly worse than assumed by consensus (23.2% Core EBIT vs consensus of 23.6%). This deterioration reflects pricing pressure on Advair and impact of the Novartis transaction. Management is now guiding to a c.500bp drag on margins for the FY partly as a result of greater than expected costs from the acqui