India's GSK Pharma falls on negative outlook amid NLEM impact

GlaxoSmithKline Pharmaceuticals

20/03/2023 07:45

** Shares of GlaxoSmithKline Pharmaceuticals (GSK)  GKAX.NS 
fall as much as 1.9% to 1,262.55 rupees
    ** Analysts at Morgan Stanley cut their price target to
1,256 rupees amid impact of National List of Essential Medicines
(NLEM) on base business, slower vaccine uptake and limited new
launch visibility
    ** Co's management expects NLEM impact to curb F24 margins,
estimates a 8-9% negative impact worth 2.4 to 2.6 bln rupees on
F24 revenues - Morgan Stanley
    ** FY24 sales could be impacted by ~9% with a 2% to 3% net
impact on earnings while EBITDA margins may see a dip - analysts
at JM Financial
    ** Stock trading below 100- and 200-day moving averages
since March 8
    ** About 20,530 shares change hands by 01:07 p.m. IST, vs
30-day avg of ~53,900 shares
    ** Four analysts rate stock equivalent of 'buy' or higher,
one 'hold' and two 'sell;' median PT is 1,390 rupees - Refinitiv
data
    ** Stock down 2.4% so far this year as of last close,
compared to a 7.3% fall in Nifty Pharma Index  .NIPHARM 

 (Reporting by Dimpal Gulwani in Bengaluru)
 ((Dimpal.Gulwani@thomsonreuters.com;))