Updated February 12th, 2024 at 18:01 IST
GSK Pharma’s Q3 profit dips marginally to Rs 229 crore
GSK endured a decline in revenue for three consecutive quarters following the implementation of the NLEM.
GlaxoSmithKline Pharmaceuticals, the subsidiary of the UK-based pharmaceutical giant GSK, faced a 3 per cent decline in third-quarter profit, attributing the setback to the government's imposition of price caps on certain medications.
For the quarter ending December 31, consolidated profit before exceptional items and tax stood at Rs 229 crore, down from Rs 236 crore recorded in the same period the previous year.
GlaxoSmithKline, heavily reliant on its Indian operations for revenue, has been grappling with challenges since September 2022. The period saw the inclusion of key products like the Ceftum antibiotic and T-Bact ointment in the National List of Essential Medicines (NLEM), mandating sales below a government-mandated price ceiling.
The company endured a decline in revenue for three consecutive quarters following the implementation of the NLEM. However, it saw a rebound in the June quarter of the last fiscal year, driven by growth in its vaccine business.
Despite this, revenue from operations in the latest quarter showed 0.4 per cent marginal increase, reaching Rs 805 crore.
In addition to the impact of government pricing regulations, GlaxoSmithKline faced one-time charges amounting to Rs 163 crore related to a voluntary retirement scheme and other employee dues. Comparatively, the previous year saw a one-time charge of Rs 11.37 crore due to restructuring costs.
GSK provided an optimistic forecast for 2024 and beyond.
In a similar vein, rival Abbott India reported a 26 per cent surge in third-quarter profit, driven by heightened sales.
GlaxoSmithKline Pharmaceuticals shares ended 1.91 per cent lower at Rs 2,334 ahead of earnings announcement.
(With Reuters inputs)
Published February 12th, 2024 at 18:01 IST