Shares in drug giant GlaxoSmithKline (NYSE: GSK) surged 3 percent early Wednesday after the company reported a better-than-expected decline in earnings.

In the first full quarter of results following its massive $21 billion asset swap and partnership with Novartis, GSK reported earnings of 21.7 cents per share. While down 9 percent from a year ago, the profit was better than analysts had forecast.

Overall sales did grow 6 percent to $9.2 billion.

GSK shares rose to $42.97 in Wednesday trading after closing at $41.71 on Tuesday.

GSK sold its oncology business to Novartis and in return acquired the vaccine business of Novartis with the exception of the Novartis influenza business. The two companies also formed a joint venture targeting over-the-counter consumer products.

“This is our first full quarter of performance since completion of the transaction with Novartis and it is encouraging,” said GSK’s CEO Andrew Witty in a statement.

“Our integration and restructuring plans are on track and we remain confident that we can achieve our targets for this year and return the Group to earnings growth in 2016.

“Sales grew 7% on a reported basis and 2% pro-forma. New product performance was positive in all three of GSK’s businesses, with the standout performance for the quarter coming from our new HIV drugs, Tivicay and Triumeq. Both of these are tracking ahead of recent best-in-class launches, and together generated sales of £294 million (some $400 million.)

“Elsewhere, we saw continued strong uptake for Flonase OTC, an improving market share for Breo Ellipta following the indication for asthma granted in April, and continued uptake of the newly acquired Meningitis vaccines Bexsero and Menveo. Importantly the growth of our new pharmaceutical products is now more than offsetting sales declines of Seretide/Advair.

“We will be showcasing further product innovation at our event for investors in November at which we expect to review new data and prospects for advanced and early-stage development projects in HIV, Oncology, Vaccines, Cardiovascular, Immuno-inflammation and Respiratory diseases.”

Read more at: http://www.gsk.com/media/712063/q2-2015-results-announcement.pdf