DRUGS giant GlaxoSmithKline posted a huge profit in the first three months of the year despite a double digit fall in sales.

The company, which employs around 800 at its Barnard Castle site, saw turnover fall 10% to £6.58bn while pre-tax profits rose 27.6% to £2.46bn.

A £1bn reduction in the sales of pandemic products hit pharmaceutical revenues, which fell 14% to £5.26bn during the period.

However Glaxo said asset disposals and savings from a major cost-cutting programme had helped to offset the decline in sales and improve margins.

Chief executive Andrew Witty said: “I believe this first quarter performance is positive on many fronts, with good progress made in delivery of our strategy to improve long-term financial performance.

“One of our key goals is to increase returns on investment in research and development and we have made fundamental changes within the organisation to achieve this.

“Our continued progress in both pipeline delivery and cost reduction supports our belief that we can achieve this objective.”

The company is attempting to make £2.2bn of savings by 2012 after being hit with hefty legal costs which saw profits slump 60% last year.