GlaxoSmithKline Pharmaceuticals Limited on October 22, 2019, declared its financial results for the quarter ended 30th September, 2019.
Revenue for the quarter came in at Rs873cr with a growth of 8% yoy.
Profit After Tax (including exceptional items) at Rs503cr recorded a growth of 399%. PAT (excluding exceptional items) grew by 30% yoy.
EBDITA came in at 22% for Q2FY20.
Exceptional items recognized in the quarter include divestment of the company’s land at Thane for a net consideration of Rs552cr, pursuant to receipt of all statutory and regulatory approvals from the concerned authorities.
Exceptional items also include the financial impact of product recall detailed below: GSK has been contacted by regulatory authorities regarding the detection of NOMA in ranitidine products.
Based on the information received and correspondence with regulatory authorities, GSK made the decision to suspend the release, distribution and supply of all dose forms of ranitidine hydrochloride products to all markets, including India, as a precautionary action pending the outcome of ongoing tests and investigations. GSK manufactures Ranitidine Hydrochloride IP Tablets 150 mg and 300 mg (Zinetac) for supply to the Indian market.
Further to additional information received and as a precautionary action, GSK made the decision to initiate a voluntary pharmacy/retail level recall of the Zinetac products above from the Indian market. GSK is continuing with investigations into the potential source of the NOMA. These investigations include continued engagement with our API suppliers. Patient safety remains our utmost priority and we are taking this issue very seriously.
Commenting on the results, A. Vaidheesh, Managing Director, GlaxoSmithKline Pharmaceuticals Limited said, “Our global Innovation, Performance & Trust (IPT) strategy underpinned by our culture, has guided investment of our resources in focus therapies which is showing encouraging results with our promoted brands recording +20% growth this quarter. We continue to see the annualizing effect of discontinued tailend brands. Adjusting for this our underlying sales growth is 16% supported by strong volume growth of 11%.” – IIFL