Company Watch

GlaxoSmithKline Pharmaceuticals' Net Profit up 15.1 percent

Our News Bureau - Mumbai

GlaxoSmithKline Pharmaceuticals posted a profit after tax and before exceptional items of Rs 306.28 crores in the year ended December 31, 2005. The Board recommended a dividend of Rs 14 per equity share for the year (previous year Rs 13 per Equity Share). If approved by the shareholders at the Annual General Meeting, the special one-time dividend will absorb Rs 135.2 crores inclusive of the Dividend Distribution Tax.

Commenting on the performance, Mr S Kalyanasundaram, Managing Director, GlaxoSmithKline Pharmaceuticals said, "The focus on priority products and their sterling performance have helped us report robust sales for the fourth successive year." He added, "There are two seminal areas on which we have leveraged our expertise and resources in the past year, that is, value addition to the parent Company's global R&D through clinical research and a unique India-centric strategy. "

The total sales of Rs 1485.30 crore registered an overall growth of eight percent. With a double-digit growth in promoted products, net sales of the pharmaceuticals business grew by 8.6 percent against industry growth of 5.3 percent. GSK India continues to be the industry leader with a 6.5 percent market share in the India.

During the year, the company launched four new products licensed from companies in the US and Japan, they are Parit (Rabeprazole) in alliance with Eisai, Japan, Ferronine (a novel chelated iron) in alliance with Albion, USA and two new oral contraceptives in alliance with Organon. The company also entered the diabetes segment through the launch of Windia and Windamet.

India has been identified as a major centre for clinical research across a number of disease areas such as breast cancer, central nervous system related disorders, and infectious diseases.

The company also commenced the share buyback program in May 2005 and has bought back 26,19,529 shares of Rs 10 each for an aggregate consideration of Rs 209,16.37 lakh at an average price of Rs. 798.48 (inclusive of associated costs) from the open market through stock exchanges. The company closed the buyback program on December 21, 2005, resulting in a reduction in the paid up share capital to Rs 8470.30 lakh from Rs 8732.25 lakh. Consequently, the promoter shareholding has increased from 49.15 percent to 50.67 percent.