GlaxoSmithKline Pharma India posts adjusted profit up in fourth quarter on strong sales

GlaxoSmithKline Pharma India posts adjusted profit up in fourth quarter on strong sales
GlaxoSmithKline Pharma India posts adjusted profit up in fourth quarter on strong sales

Drugmaker GlaxoSmithKline Pharma India on Friday reported a 49% rise in adjusted fourth-quarter profit as strong demand for its generic drugs offset the impact of government-imposed price restrictions on its main drugs.

The company reported consolidated profit before special items and taxes of 2.68 billion rupees ($32.1 million) for the quarter ended March 31, up from 1.80 billion rupees a year earlier.

In the previous period, the Indian unit of the British GSK group had recorded an exceptional charge of Rs 104 million, comprising restructuring and other costs.

Shares of the company closed up 13.7% following the earnings release.

Operating revenue rose 18 per cent to Rs 9.30 billion, driven by 12 per cent growth in its generic medicines portfolio, which the company attributes to its flagship brands Augmentin, Ceftum and Calpol.

Profits of drugmakers such as GlaxoSmithKline Pharma and Abbott India have come under pressure as prices of some of their key drugs have been capped under the Indian government’s list of essential medicines (NLEM) since September 2022.

However, “despite the impact of NLEM in previous quarters, all promoted brands outperformed their respective categories in terms of growth and gained market share,” the company said in a statement.

Last week, rival company Abbott India reported higher fourth-quarter profit, thanks to strong sales. ($1 = 83.3825 Indian rupees)

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