Glaxo’s Pharmaceutical segment will continue to be negatively impacted by the loss of patent protection for its products, such as Coreg, Imitrex, Lamictal, Paxil, Requip, Wellburtin and Zofran, coupled with decline in sales for its anti-diabetic drug, Avandia. We also remain concerned over the subdued pharmaceutical growth recorded in Glaxo’s key markets of the US and Europe in FY 2008, due to greater competition from generic drugs. Hence, we expect growth to remain subdued, going forward. Revenue growth for Glaxo’s respiratory product; Seretide/Advair (the highest selling respiratory product worldwide) will be driven by strong growth rates expected from respiratory products, which may be partially offset by competition from AstraZeneca PLC’s Symbicort, which received approval for expanded indications on 02 March 2009. Higher Government orders are expected to drive growth in Glaxo’s Vaccine portfolio, with particular strong growth expected from Rotarix and Cervarix, coupled with the anticipated approval for Cervarix by the US Food and Drug Administration (FDA) during FY 2009. We are also optimistic over Glaxo’s increasing penetration in emerging markets, given the significant increase in sales force in Russia and China, and cost savings from a declining headcount in the US. We anticipate higher Research and Development (R&D) expenses, associated with 30 products in advanced stages of development and higher Selling, General and Administration (SG&A) expenses, associated with a focus on increasing the company’s penetration in Japan and emerging markets. We anticipate a continued decline in margins, associated with increase in the proportion of relatively low margin vaccine sales and higher sale in emerging markets.

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