GlaxoSmithKline Q2 declines 29.64% at Rs 115.04 cr

Drug firm GlaxoSmithKline Pharmaceuticals (GSK) today reported 29.64 percent decline in its stand alone net profit at Rs 115.04 crore for the second quarter ended June 30, 2013.

Also read: Rupee fall aided company's Q1 profits: Lupin

The company had posted a stand alone net profit of Rs 163.52 crore in the same period previous fiscal, GSK Pharma said in a filing to the BSE.

Company's standalone income from its operation increased to Rs 636.86 crore in the April-June quarter, compared to Rs 651.96 crore during the same period last year.

Meanwhile in a separate filing to BSE, the company said its sales and turnover would be impacted by 5 per cent on an annualised basis due to the implementation of the new prices of its medicines as notified by the government under the new drug pricing policy.

The government has adopted the list of medicines that had been revised by the Ministry of Health and Family Welfare and which formed part of the National List of Essential Medicines (NLEM) under the new drug policy.

As per the policy, the span of price control of drugs has been enhanced from 74 to 348 drugs and the pricing mechanism has been amended from cost based pricing to market based pricing, the company said.

"In view of the above, a number of products of the company have come under the DPCO (Drug Price Control Order) 2013 resulting in reduction of prices of companies drugs...The Company estimates 5 per cent impact on an annualised basis on its sales and turnover," GSK said.

The company follows January to December financial year. GlaxoSmithKline Pharmaceuticals shares today closed at Rs 2,392 per scrip on BSE, up 2.98 per cent from its previous close.