The Hindu Business Line : GlaxoSmithKline net up on cost optimisation

Mumbai, July 28 Judicious cost optimisation has helped GlaxoSmithKline Pharmaceuticals navigate the combined effect of rising crude prices and input costs, observed the Managing Director, Dr Hasit B. Joshipura.

The company posted a net profit of Rs 114.86 crore for the quarter ended June 30, 2008, as against Rs 96 crore for the quarter ended June 30, 2007. It clocked a total income of Rs 442.80 crore for this quarter compared with Rs 415 crore in the same period last year.

Figures for the period under review were not comparable with those of the previous period, the company said, because of the sale of the Fine Chemicals business on September 30, 2007.

Nevertheless, it pointed out, the growth in net sales (net of excise and excluding the Fine Chemicals business) was 11.2 per cent during the quarter under review.

The growth in gross sales (excluding the Fine Chemicals business) during this quarter was impacted due to lower selling prices as a result of the excise benefit passed on to the consumer, the company told the Bombay Stock Exchange.

Profit before tax and exceptional items grew by 19.2 per cent during the quarter on a comparable basis.

Tykerb

The quarter under review saw the significant launch of GSK Pharma’s breast cancer drug, Tykerb. The drug was launched at 25 per cent less than the price in some other overseas markets, Dr Joshipura told Business Line.

In step with its stated strategy to forge in-licensing deals, the company has brought into India injectible anti-fungal agent, Micafungin, from Japan’s Astellas Pharma Inc. It has also signed a co-promotion agreement with Daiichi Sankyo India Pharma Ltd for antihypertensive drug Olmesartan Medoxomil and its combination products.

GSK Pharma looks to fuel its growth through a combination of in-licensed products and its own, he said.

Strides-Aspen

On the recent supply pact struck between parent company GSK Plc and Strides-Aspen, Dr Joshipura said that the Indian arm of GSK would gain from the tie-up as it would have access to the products in the deal. GSK Pharma shares were up 2 per cent, at Rs 1,119.75 on the BSE.