GST implementation impacts GSK’s June quarter performance
GlaxoSmithKline Pharmaceuticals, a subsidiary of GlaxoSmithKline, is strengthening its vaccine portfolio and increasing its focus on rural markets and hospital business. The company has submitted necessary applications for new products to the Central Drugs Standard Control Organisation (CDSCO).
A Vaidheesh, Managing Director, GSK Pharma, informed that it has been a difficult year for the company due to drug price reduction. However, we have product pipeline for next few years which will help the company to grow.
After a thorough review of its application, the company has received approval for the expansion of indication to include 19A serotype effectiveness for the pneumococca polysaccharide conjugate vaccine (Synflorix) and for transfer of marketing authorisation from Novartis to GSK for meaningococcal vaccine (Menveo) and the diphtheria, tetanus pertussis (whole cell) hepatitis B and haemophilus influenza Type B conjugate vaccine (Quinvaxem), which will enable timely access to new and innovative therapeutic options to patients in India.
The company is also developing a mechanism to ensure that price alone should not become the foremost criteria in dispensing drugs and that quality and safety should receive equal consideration. In line with the government’s proposal to amend the Drugs and Cosmetic Act to ensure availability of drugs at reasonable prices, Aadhar – based smart cards for senior citizens, listing out their health conditions, will help in providing an efficient monitoring mechanism for geriatric health conditions. The company will pilot this programme in 15 districts during the financial year 2017-18.
Due to GST implementation, destocking of the trade channel by approximately two weeks, the company reported a decline in its financial figures. For the June quarter ended 2017, the company’s sales stood at Rs 607 crores, which declined by 14 per cent against same period of previous year. Its net profit is Rs 26 crores and Profit Before Tax (PBT) is Rs 38 crores, as compared to the same period last year.
In the company’ annual general meeting held in Mumbai, Deepak Parekh, Chairman, GSK Pharma, announced that the company has invested Rs 1000 crore for the new state-of-the-art pharma factory in Vemgal, Karnataka which will start commercial production in fourth quarter of 2018. The facility will initially supply a range of solid dose form products and will produce more than eight billion tablets and one billion capsules.
The company has appointed two new directors: M Jones, who joined from Astrazeneca and S Willaims deputed from GSK to GSK Pharma India.