GlaxoSmithKline Pharmaceuticals, a leading multinational company in India with sales of Rs. 2,600 crore,  has received setback during the second quarter ended June 2013 and its net profit declined by 29.7 per cent to Rs. 115.04 crore from Rs. 163.52 crore in the corresponding period of last year. Its net sales also moved down by 2.3 per cent to Rs. 636.86 crore from Rs. 651.96 crore due to constraints of supplying products under new Drug (Price Control) Order 2013 (DPCO 2013). Its EPS declined to Rs. 13.5 from Rs. 19.3 in the last period. It has shown an exceptional income of Rs. 20.07 crore from sale of property.

In view of new DPCO 2013, a number of products of GSK have come under the DPCO 2013 resulting in reduction of prices of companies drugs. The new reduced notified price is to be implemented within a period of 45 days from the date of notification of the price control order. The company estimates 5 per cent impact on an annualized basis on its sales and turnover.

For the first half ended June 2013, GSK's net sales declined marginally by 0.5 per cent to Rs. 1,269 crore from Rs. 1,275 crore in the similar period of last year. Its net profit also went down by 0.8 per cent to Rs. 284.05 crore from Rs. 286.41 crore. It registered exceptional income of Rs. 18.51 crore as against expenditure of Rs. 101.98 crore. Its earnings per share worked out to Rs. 33.5 as against Rs. 33.8 in the same half of last year.