GlaxoSmithKline Pharma India posts higher Q4 adjusted profit on strong sales

GlaxoSmithKline Pharmaceuticals

17/05/2024 11:04

BENGALURU, May 17 (Reuters) - Drugmaker GlaxoSmithKline
Pharma India  GLAX.NS  reported a 49% rise in fourth-quarter
adjusted profit on Friday, as strong demand for its generic
medicines offset the impact of the government's ongoing price
curbs on its key drugs.
    The company reported consolidated profit before exceptional
items and taxes of 2.68 billion rupees ($32.1 million) for the
quarter ended March 31, compared to 1.80 billion rupees a year
earlier.
    In the year-ago period, the Indian unit of UK's GSK  GSK.L 
had an exceptional charge of 104 million rupees which comprised
restructuring and other costs.
    The company's shares closed up 13.7% after the results. 
    Revenue from operations rose 18% to 9.30 billion rupees, led
by a 12% growth in its generic medicines portfolio which the
company attributed to key focus brands Augmentin, Ceftum and
Calpol.
    Earnings at drugmakers like GlaxoSmithKline Pharma and
Abbott India  ABOT.NS  have been pressured as prices of some of
their key drugs were capped under the Indian government's
essential medicines list (NLEM) since September 2022.
    However, "despite the NLEM impact in previous quarters, all
promoted brands outpaced their respective categories in growth
and gained market share," the company said in a statement.
    Last week, rival Abbott India reported a higher
fourth-quarter profit, led by strong sales.

($1 = 83.3825 Indian rupees)

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 (Reporting by Kashish Tandon in Bengaluru; Editing by Varun H
K)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))