Drug firm GlaxoSmithKline Pharmaceuticals on October 28 reported nearly 85 percent decline in its consolidated net profit to Rs 76.47 crore for the quarter ended in September. The company had posted a net profit of Rs 502.75 crore for the corresponding period of the previous fiscal, it said in a BSE filing.
Consolidated revenue from operations of the company stood at Rs 879.32 crore for the quarter under consideration. It was Rs 882.02 crore for the same period a year ago, it added. The company has recognised a financial impact of Rs 64.13 crore for the latest September quarter mainly to reflect the estimated realisable value of the assets, associated costs and impacts of reversal of provision on account of Zinetac recall, the filing said.
The company had recognised an exceptional item of Rs 401.14 crore for the quarter ended September 30, 2019, it added. "GSK continues to demonstrate resilience in these times, as we focus our efforts on the safety of our employees while ensuring patients have access to our medicines," GlaxoSmithKline Pharmaceuticals MD Sridhar Venkatesh said.
Most of GSK's key brands have outpaced their respective categories by gaining market share and company's cost reduction/efficiency initiatives have helped drive margin expansion, he added. "We also continued our focus as an innovation-driven, science-led biopharmaceutical company with the recent launch of Fluarix Tetra – the world's first inactivated quadrivalent influenza vaccine during the quarter," Venkatesh said.
After considering all the strategic options available with the company for the manufacturing site at Vemgal following the global voluntary recall of Zinetac, it has decided to proceed with the sale of the site and has classified the assets as held for sale, he added. Earlier this year, the company decided to discontinue the production and sale of Zinetac tablets used to treat and prevent heartburn.