The Hindu Business Line : GlaxoSmithKline Pharma net up 60%

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Mumbai Feb. 16 GlaxoSmithKline Pharmaceuticals Ltd (GSKPL) has clocked a 60 per cent growth in net profit at Rs 67.79 crore for the year ended December 31, 2006, as compared to Rs 42.38 crore in the corresponding period of the previous year. The company clocked a 17.6 per cent growth in sales for the year under review, at Rs 348.89 crore, as against Rs 343.05 crore in the previous year.

The GSKPL Managing Director, Dr Hasit B. Joshipura, said, "The company posted a double-digit growth in the topline during last quarter of 2006. This accelerated growth needs to be viewed on the backdrop of the industry growth fuelled by epidemics in the peninsular region which increased sales of formulations on pain, anti-infectives and gastro-intestinal. Procurement efficiencies and tight expense control also contributed to the entity's profit growth during the year."

For the year ended December 31, 2006, GSKPL posted a 16.3 per cent growth in profit before tax and before exceptional items at Rs 555.95 crore in 2006, as against Rs 477.91 crore in 2005.

The company's board recommended a dividend of Rs 17 per equity share for the year, (previous year Rs 14). If approved by shareholders at its annual general meeting, the dividend will absorb Rs 144 crore inclusive of the dividend distribution tax, the note added.

Excluding the financials of the animal health business that was divested during the year, the growth in net sales of the continuing businesses, mainly pharmaceuticals, works out to 9.3 per cent and in profit before tax and exceptional items is 20.6 per cent, a note from the company said.

The company's pharmaceuticals business registered a growth due to the active promotion of priority products and a shift from the acute to the chronic disease segment. New products drove growth in the pharmaceutical segment.

Sales of Augmentin crossed Rs 100 crore this year. With additional cash generation from the divestment of the animal health business, the company's directors were of the opinion that part of the surplus cash be returned to shareholders. The board recommended a special additional one-time dividend of Rs 14 per equity share, the note said. The special additional dividend will absorb Rs 118.58 crore inclusive of the dividend distribution tax, when approved by shareholders, the company said.

The company divested its animal health business to Virbac Animal Health India Private Ltd, a 100 per cent subsidiary of Virbac S.A. France on July 31, 2006 for a consideration of Rs 207.1 crore.

Clinical studies

In 2006, GSK India participated in more than 15 global clinical studies spanning across six therapy areas involving 200 patients. And on the research front, India has been identified for clinical research in disease areas relevant to the country, such as cancer, psychiatric disorders and infectious diseases.

The emphasis of clinical research activities is shifting from large, multi-centric Phase III studies to Phase II studies and even earlier dose escalation studies, the company said.

GSK has identified six oncology centres of conducting early phase studies in India, which are being developed with inputs of the Institute of Cancer Medicine, University of Oxford.

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