BENGALURU (Reuters) – GlaxoSmithKline Pharmaceuticals, the Indian unit of UK’s GSK plc, posted an 11% rise in first-quarter profit on Wednesday, buoyed by strong demand for its vaccines.
The firm said consolidated profit for the quarter ended June 30 rose to 1.32 billion rupees ($16.10 million) from 1.19 billion rupees a year earlier.
“GSK’s vaccines business has now demonstrated a sequential Q-o-Q increase and maintained leadership in the private self-pay market,” it said in a statement.
Revenue from operations at the Augmentin antibiotic maker rose 2.2% to 7.62 billion rupees.
The company had a one-off gain from the sale of surplus residential properties worth 173 million rupees, adding to its profit.
However, the company continued to face headwinds from the inclusion of its key products Ceftum antibiotic and T-Bact ointment — used to treat bacterial infections — in the country’s National List of Essential Medicines (NLEM) last year, mandating sale below a price ceiling set by the government.
In March, the drugmaker said the impact of the drugs on its revenue share had increased to 42% so far this year from 33% in 2022.
Shares of the drugmaker closed marginally lower at 0.1% post results on Wednesday, compared with a 0.66% rise in the Nifty Pharma index.
Its parent GSK raised its full-year profit and sales guidance after second-quarter earnings beat expectations earlier in the day, helped by strong sales of its shingles vaccine Shingrix and HIV medicines.
($1 = 81.9980 Indian rupees)
(Reporting by Kashish Tandon in Bengaluru; Editing by Sohini Goswami)
