After two consecutive years of lackluster performance on account of GST rollout, competition and price control, GSK sales rose 8 percent in FY19 on YoY basis to Rs 3128 crore.
GlaxoSmithKline Pharmaceuticals, the Indian unit of British drug major GSK said it will focus its energies on 20 brands and five therapeutic segments anti-infectives, dermatology, respiratory, gastro-intestinal and anti-pyretic to drive future growth in India.
The drug maker is also seeking deeper engagement with distribution channel partners and securing control over the supply chain with its own factories.
“We optimised our product portfolio, identifying key brands behind which we put resources to actively promote,” said A Vaidheesh, Vice President, South Asia & MD, India of GSK in the company's FY19 annual report.
“We also have a more structured approach to engaging our trade channel partners, with a dedicated team to engage stockists and retailers,” Vaidheesh added.
After two consecutive years of lacklustre performance on account of GST rollout, competition and price control, GSK sales rose 8 percent year-on-year (YoY) in FY19 to Rs 3,128 crore.
Around 17 percent of GSK’s revenue comes from price-controlled products.
To concentrate on the strategy, GSK had sold 10 tail-end brands in FY19, including its Vitamin C brand Celin and anti-infective brand Septran.
GSK is also investing in increasing people in the front end.
The company has added 700 marketing representatives (MR) in targeted segments taking the total strength to 3,500. GSK had discontinued the incentive scheme based on the sales generated by the MRs and moved to the scientific details discussed with the doctors.The company has launched Nucala for asthma and Infanrix Hexa vaccine,
which are expected to drive sales.
Infanrix Hexa vaccine is a pediatric six-in-one combination vaccine to protect children from six diseases such as diphtheria, tetanus, pertussis (whooping cough), hepatitis B, poliomyelitis (polio) and Haemophilus influenza type b.
Seven of GSK’s brands appear in the list of top 50 medicine brands in India. The drug maker’s antibiotic Augmentin contributes about one-tenth of the company’s revenues. The vaccine division that markets eight vaccines including Synflorix (pneumonia), Rotarix (diarrhoea), among others contributed around one-fourth of the revenues in FY19.
GSK has around 30 percent market share, growing at 13 percent in the private market for vaccines, which is currently estimated to be Rs 2,200 crore for the year ended February 2019, as per IQVIA.
GSK is also building a new factory at Vemgal near Bengaluru with an investment of Rs 1,000 crore. The upcoming facility will be the first greenfield pharmaceutical site that GSK has built across the globe over the past 10 years.The plant has a capacity to manufacture eight billion tablets and a billion capsules. GSK has plans to transfer part of the production from a contract supplier to its own Vemgal, once it running, which is expected by end of this year. The plant is likely to help GSK improve product quality and secure its supply chain.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.