The Hindu Business Line : GlaxoSmithKline shoots up on good Q4 numbers

THE stock of GlaxoSmithKline Pharma rallied sharply, touching a 52-week high of Rs 645 (NSE) during intra-day trade, amid good volumes on the bourses today.

While the company's Q4 numbers have provided a shot in the arm, brokers believe that strong fundamentals will see the counter continue to gain in strength.

"While it was evident from the second quarter, the Q4 numbers are more of a confirmation that the company has turned the corner," an analyst with a domestic broking house said.

Enhanced operational efficiencies and a good growth of its priority brands have reportedly scaled up company performance. "The contribution from GSK Pharma's 30 power brands - in the anti-asthma, anti-infection drugs, vitamins and vaccines segment - will keep growing," sources said.

Analysts opine that the company would have grown faster had it not been for the downward revision in prices of ranitidine formulations by the National Pharmaceuticals Pricing Authority (NPPA) in September 2003.

"The full impact of the reduction is likely to be reflected in the coming quarters," an analyst added.

The stock ended the day at Rs 625.10, up 2.53 per cent, with around 1.2 lakh shares traded on the NSE.

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