GlaxoSmithKline Pharmaceuticals, the Indian arm of GSK plc based in the UK, reportedly recorded an 11% increase in its first-quarter profit, driven by robust demand for its vaccines.

According to the company's statement, the consolidated profit for the quarter ending on June 30 surged to 1.32 billion rupees ($16.10 million) compared to 1.19 billion rupees from the previous year.

The statement highlighted that GSK's vaccines business exhibited a sequential Q-o-Q growth and maintained its leadership position in the private self-pay market. As an addition to that, the revenue from the company's operations, particularly its Augmentin antibiotic line, saw a 2.2% rise, reaching 7.62 billion rupees. As per reports, GSK has also benefited from a one-off gain of 173 million rupees due to the sale of surplus residential properties, contributing to its overall profit.

However, in a recent turn of events, the company faced challenges as some of its key products, including the T-Bact ointment and Ceftum antibiotic used to cure multiple bacterial infections, were added to the National List of Essential Medicines (NLEM) last year. This mandated selling them below a government-imposed price ceiling. As a result, the impact of these drugs on GSK's revenue share increased to 42% in the current year compared to 33% in the previous year, as reported in March.

Following the release of the first-quarter results, the company's shares experienced a marginal decline of 0.1% compared to a 0.66% rise in the Nifty Pharma index.

On a positive note, GSK's parent company raised its full-year profit and sales guidance after beating expectations in the earnings of the 2^nd quarter. The strong performance was attributed to robust sales of Shingrix, the shingles vaccine, and HIV medicines.

Source: https://www.moneycontrol.com/news/business/earnings/glaxosmithkline-pharma-posts-rise-in-q1-profit-on-steady-vaccine-business-11036121.html