Drug giants AstraZeneca and GlaxoSmithKline (GSK) have both reported better-than-expected results despite facing competition from generic drug makers.

AstraZeneca reported earnings per share of 54 cents for the January to March quarter - down from 55 cents in the same period last year but ahead of analysts' expectations.

Stockpiling by wholesalers helped to offset competition from cheaper rivals to some of AstraZeneca's main drugs.

Cost-cutting at GSK helped the firm to report a 15% rise in earnings per share to 21.8p while pre-tax profits climbed 11% to �1.77bn ($2.8bn).

Competition

AstraZeneca has been seeking to fill the hole caused by the drop in sales of its ulcer drug Losec - known as Prilosec in the US - since cheaper copycat versions of the drug were launched.

Worldwide sales of Losec fell more than 40% in the first quarter, but sales of the firm's other drugs rose by 23%.

The company has produced a new ulcer drug Nexium, asthma drug Symbicort and developed Seroquel to help treat schizophrenia.

Overall sales were up 9% at $4.7bn.

Lower costs, higher profits

GSK's first quarter results were helped by strong sales of its asthma drug Seretide/Advair.

Overall, sales grew 2% to �5.22bn, but profits rose at a faster rate thanks to ongoing cost-cutting at the firm.

GSK was created in 2000 following the merger of Glaxo Wellcome and SmithKine Beecham.

"GSK continues to deliver extremely sold financial performance based on strong and broad portfolio of products," said chief executive Jean-Pierre Garnier.

"At the same time, effective cost control is continuing to improve profitability."