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Pharma: Product patent dilemma

(Aug 14, 2007)

The product patent law was introduced in India on January 1, 2005 and is expected to put an end to the reverse engineering practices followed by Indian companies and prompt them to focus on discovery-led research to introduce patented molecules in the long term.

MNC Pharma: Where is it headed?

(Jun 12, 2007)

In terms of both the financial performance and the stock price movement, the MNC pharma companies, as compared to their domestic counterparts, seem to have gone on the backfoot. In this article, we shall analyse the reason for the same and what the future holds for these companies going forward.

GSK Pharma: Where to from here?

(Jun 15, 2005)

Glaxo announced disappointing 1QCY05 numbers much in line with its peers in the industry. In the following article, we take a look at how the company has performed over the years and future prospects.

Pharma: Wait and see!

(Dec 13, 2004)

The new patent regime is closing in the Indian pharmaceutical sector in few days from now. From January 2005, it will become applicable and Indian manufacturers will not be able to bring out generic version of patented drugs. Despite the ongoing debate concerning the implications of the patent regime, we believe that such a regime is here to stay. But it may be a refined one.

MNC pharma: Seek opportunity!

(Nov 24, 2004)

According to newspaper reports, a leading consultancy firm has estimated that the Indian pharmaceutical sector will become a US$ 25 bn industry by the year 2012, up from its current levels of about US$ 6.5 bn. According to the report, while the market in India will expand, further growth will be driven by exports of pharmaceutical products. While Indian companies are likely to grab this opportunity with both the hands, in this article we have tried to understand how MNC pharma companies are pois

Glaxo: Other income fillip

(Oct 29, 2004)

MNC pharma major, Glaxo (GSK Pharma), reported 20% growth in revenues in 3QCY04. Consequently, the company finished the nine month period ended September 2004 with revenue growth of nearly 14% YoY. The bottomline of the company grew by almost three fold on back of extraordinary income from sale of its Worli (Mumbai) property. The operating margin also saw an expansion of nearly 7%.

Pharma: How justified is the premium valuation?

(Aug 31, 2004)

The BSE pharma index is one the key indicators of the performance of the stocks in the pharma sector and based on trailing twelve months earnings, the P/E of this index is about 21.5x. However, not all companies in the sector have valuation at these levels. While some are trading at premium there are others, which are at a discount to the index P/E.

Pharma: Safer haven…

(May 14, 2004)

The markets have been gyrating to and fro since the beginning of the year when the Sensex closed at the all time high of 6,194 on 14th Jan 2003. Since then, the benchmark index has gone nowhere. Although the Sensex has fallen considerably at about 9%, the concerning factor is the volatility over this period. What should an investor do at this juncture?

Glaxo: Focus on 2005

(Mar 24, 2004)

GlaxoSmithKline India is a 41% subsidiary of world's second largest pharmaceutical company, GlaxoSmithKline Pharmaceuticals Plc. - UK, which has a sales turnover of US$ 27 bn. In Indian market, Glaxo is the largest player with 5.6% share of the Indian pharma market and has been the undisputed leader for the last 27 years. The company has a wide drug portfolio and caters to different therapeutic segments. Augmentin - a brand owned by the company has consistently been the No. 1 vaccine in the dome

Glaxo: Power brand strategy pays off

(Feb 19, 2004)

GlaxoSmithKline Pharmaceuticals (Glaxo) recently announced its quarter and year ending FY04 results. For 4QFY04, while the topline grew by 8% YoY, the company did well to turn out profits after the losses that it had incurred in the same period of FY03. The profit growth for FY04 was better still at 76% YoY. This came on back of the company improving upon its revenues by 4% for this period. This growth in topline compbined with reduction on the expenditure front helped Glaxo to improve its opera

GSK Pharma: Efficiencies drive growth

(Oct 28, 2003)

GlaxoSmithKline Pharma (GSK) has announced its 3QFY04 results. Despite a revival in the domestic pharma market, the company has posted a meager 4% growth in topline (GSK had recorded an impressive 10% growth during 2QFY04 when the domestic pharma industry was going through a tough phase). However, improvement in operating efficiencies has helped the company record a robust 55% growth in bottomline. For 9mFY04, GSK has reported a 4% growth in net sales and a 56% rise in net profit.

MNC Pharma: A comparison

(Oct 14, 2003)

In an article in our series on identifying stocks, we had discussed the key parameters that should be looked into while investing in an MNC pharma stock. In this article, we have analyzed some of the leading MNC pharma companies (GlaxoSmithKline Pharma, Pfizer, Aventis, Novartis and Abbott India) on the basis of some of the parameters that were mentioned in that article. Take a look at the following t

GSK Pharma: Gearing for 2005

(Oct 7, 2003)

GlaxoSmithKline Pharmaceuticals Ltd (GSK) is India’s largest pharmaceutical company with a market share of 7%. Globally, its parent, GlaxoSmithKline Plc is the second largest pharma company. Although GSK’s product portfolio boasts of some of the best-known brands in the domestic market, stiff competition and a slump in the domestic market has stunted the company’s revenue growth in recent months. In this context, let us briefly understand GSK’s business structure and its strategy in view of the

Glaxo: Getting leaner

(Jul 30, 2003)

MNC Pharma major, GlaxoSmithKline (GSK), has improved its topline during the June quarter. After registering a 2.5% topline dip in the March quarter, the company has reported over 10% growth in the same during the June quarter. The company had attributed the topline dip in the March quarter to VAT concerns. Going by the June quarter performance it seems that the domestic pharma industry is back on track.

Pharma R&D: Unraveling the maze

(May 9, 2003)

There has been a lot of hoopla about the need to invest in Research & Development (R&D) by the Indian pharmaceutical companies to remain competitive after the product patent regime is implemented in India in 2005.

GSK Pharma: Eyeing 2005

(Mar 13, 2003)

MNC Pharma major, GlaxoSmithKline (GSK), has reported encouraging profit growth numbers for the December quarter as well as the full year 2002. However, the topline growth was staid, owing to sluggishness in allied businesses like animal healthcare, fine chemicals and exports.

GSK: OPM expansion continues

(Nov 5, 2002)

MNC pharma major, Glaxo's September quarter numbers appear staid in terms of topline growth. Sales growth at 5% pales in comparision to the 20% growth witnessed in June quarter. Overall, the company finished the first nine months of FY03 with an 11.5% topline growth. The sharp rise in topline in the previous quarter was on account of de-stocking exercise initiated by the company last year and hence was not sustainable. Higher other income and sharp rise in margins saw Glaxo (GSK) finish the quar

GSK: Restructuring benefits palpable

(Jul 29, 2002)

MNC pharma major Glaxo has reported robust numbers for 2QFY03. Sales growth has been more than 20% from Rs2.5 bn to Rs 3 bn, driven mainly by focus on high growth products. The highlight of results was a sharp rise in operating margins of the company by almost 1,370 basis points. The rise in operating margins is due to combination of restructuring benefits, reduction in employee costs and focus on high margin products.

Will MNC’s make a comeback?

(Apr 27, 2002)

MNC pharma companies have been losing momentum in terms of sales growth and consequent market capitalization over the last two years. While the top 5 domestic companies recorded a revenue growth of more than 20% last year, consolidated MNC pharma growth was less than 3% with margins at half the average of domestic majors.

GSK India: The leader strikes back

(Apr 27, 2002)

A look at the operating performance graph of GSK for the last five years would explain the reason for a complete restructuring exercise undertaken by the company last year. While operating margins had taken a dip, sales had started showing signs of stagnation. Saddled with excess manufacturing facilities, labour force and low margin products, the leader was losing its hold in the market.


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