GlaxoSmithKline India net sales up by 12% in Q3 2009

GlaxoSmithKline Pharmaceuticals Limited has clocked net sales growth of 12% compared to the previous quarter, for the third quarter ended 30th September 2009.
GlaxoSmithKline Pharmaceuticals Limited’s profit before investment income and taxes grew by 13% on a comparable basis.

GlaxoSmithKline Pharmaceuticals Limited’ net profit for the three months ended Sept. 30 climbed to INR1.41 billion from INR1.32 billion a year earlier. Net sales rose  to INR5.12 billion from INR4.57 billion, the company said.

“Sales during the quarter have shown growth across mass, mass speciality, vaccines and speciality therapies. Recent launches of Tykerb for refractory breast cancer, Benitec an anti-hypertensive drug from Daiichi Sankyo and Cervarix for cervical cancer are making steady progress. Vaccines have recorded strong growth with the rotaviral diarrhea vaccine tracking ahead of plan," stated Dr Hasit B. Joshipura, managing director, commenting on the performance during the quarter.

While, GlaxoSmithKline Consumer Healthcare reported profit after tax up 13.2 % to  Rs 60 crore  for the quarter ended September 30, 2009 versus Rs 53.03 crore  from the corresponding quarter of the last fiscal year.

Net sales was reported up 17.2% to Rs 495.06 crore  for the same quarter versus Rs 422.48 crore  from the corresponding quarter of the last fiscal year.

Operating profit up 24.63% to Rs 78.58 crore versus Rs 63.05 crore and operating profit margins up 95 bps to 15.87% versus 14.92 %.

GlaxoSmithKline Consumer Healthcare’s net sales went up 5.6% to Rs 495 crore versus Rs 468 crore and PAT up 8.8% to Rs 60 crore versus Rs 55 crore.

GlaxoSmithKline Consumer Healthcare’s operating profit up 5.3% to Rs 78.5 crore versus Rs 74.5 crore while operating profit margins ent down 4 bps ot 15.87% versus 15.91%

GlaxoSmithKline Consumer Healthcare’s growth in profits are driven by low raw material costs, packing costs, employee costs. Raw material cost is down 7.4% to Rs 117.16 crore versus Rs 126.48 crore. Raw material costs as a percentage of sales down 627 bps to 23.67 % versus 29.94%. Packing costs went down 13.7% to Rs 42 crore versus Rs 48.66 crore.

Employee costs down 12.5 % to Rs 51.27 crore versus Rs 45.56 crore. While the company’s advertising costs went up 67.3% to Rs 80.8 crore versus Rs 48.31 crore.

GlaxoSmithKline Pharmaceuticals Limited is a subsidiary of USD 45 billion GlaxoSmithKline plc, one of the world’s leading research-based pharmaceutical and healthcare companies.

Established in the year 1924 in India GlaxoSmithKline Pharmaceuticals Ltd is one of the market leaders with a turnover of Rs. 1880 crore and a share of 5.7 per cent.

GlaxoSmithKline Pharmaceuticals Limited’s product portfolio includes prescription medicines and vaccines.

GlaxoSmithKline Pharmaceuticals Limited’s prescription medicines range across therapeutic areas such as anti-infectives, dermatology, gynaecology, diabetes, oncology, cardiovascular disease and respiratory diseases.

GlaxoSmithKline Pharmaceuticals Limited is the market leader in most of the therapeutic categories in which it operates.

GlaxoSmithKline Pharmaceuticals Limited also offers a range of vaccines, for the prevention of hepatitis A, hepatitis B, invasive disease caused by H, influenzae, chickenpox, diphtheria, pertussis, tetanus, rotavirus, cervical cancer and others.

GlaxoSmithKline Pharmaceuticals Limited has also operations in areas such as clinical trials, clinical data management, global pack management, sourcing raw material and support for business processes including analytics.

GlaxoSmithKline Pharmaceuticals Limited has two manufacturing units in India, located at Nashik and Thane as well as a clinical development centre in Bangalore. The state of art plant at Nashik makes formulations while bulk drugs and the active pharmaceutical ingredients are manufactured at Thane.

GlaxoSmithKline Pharmaceuticals is reportedly in talks with Indian generic firm Dr Reddy’s for a possible stake acquisition.

In June, DRL had agreed to supply GSK with over 100 branded drugs to be sold in Africa, west Asia, Asia Pacific and Latin America.