A DRUGS firm has outdone analysts’ expectations after strong demand helped deliver higher sales.

GlaxoSmithKline saw turnover hit £7.4bn in the three months to March 31, which was up on the £6.2bn recorded a year ago.

Analysts had expected the figure to come in at around £7.25bn.

The business, which runs a factory in Barnard Castle, County Durham, said the rise was helped in the main by clamour for HIV and asthma treatments and meningitis vaccines.

Pre-tax profit was also up, from £560m to £1.55bn, with the sale of an anaesthesia business helping such progress.

However, new boss Emma Walmsley issued a note of caution, saying the threat of US regulators allowing generic competitors to its asthma drug Advair means it cannot yet accurately forecast its full-year performance.

Ms Walmsley, who took over from Sir Andrew Witty as chief executive, said: “This is a positive start for the year with sales growth in all three of our businesses.

“Our clear focus is on preparation for near-term launches in respiratory, HIV and vaccines.”

The business is building an aseptic facility at its County Durham site, which will provide a base to make and supply injectable liquids for treatments of HIV and respiratory and auto-immune diseases.

The Northern Echo also previously revealed the plant could support the launch of a fresh remedy for lupus, with bosses confirming they were submitting plans for regulatory approval for a new therapy to ease symptoms such as facial rashes.