GlaxoSmithKline Pharmaceuticals Ltd., the pharmaceutical segment of GlaxoSmithKline Plc, has announced the financial results for the year ended December 31, 2006, reporting a 16.3 per cent increase in profit before tax and exceptional items on the back of higher sales.

The company's net profit before tax and exceptional items for the year 2006 jumped up by 16.3 per cent to Rs 555.95 crore from Rs 477.91 crore in the previous year.

Supported by an 8.7 per cent increase in sales of qualigens fine chemicals and a 10.4 per cent rise in export sales, GlaxoSmithKline Pharmaceuticals' financial year 2006 net sales from continuing operations went up by 9.3 per cent. The company had earlier divested its animal health (AFC) business to Virbac Animal Health India Private Limited, a 100 per cent subsidiary of Virbac SA France, on July 31, 2006 for Rs. 207.1 crore.

The company noted that its pharmaceutical business grew by 9.2 per cent during last year, largely due to active promotion of priority products and shift from the acute to the chronic disease segment.

According to GlaxoSmithKline, business development continues to be one of the major sources of growth for the company. Products launched since 2002 have contributed to around 25 per cent of its incremental sales in 2006.

Apart, the company said its board of directors has recommended a dividend of Rs 17 per share. The board also has recommended an additional one-time dividend of Rs 14 per share, thanks to the additional cash generated from the disinvestments of AFC business.

Commenting on the performance, Dr Hasit B. Joshipura, managing director, GlaxoSmithKline Pharmaceuticals Ltd., said, "The company posted double-digit growth in the top line during last quarter of 2006. This accelerated growth needs to be viewed on the backdrop of the industry growth fuelled by epidemics in the peninsular region which increased sales of formulations on pain, anti-infectives and gastro-intestinal. Procurement efficiencies and tight expense control also contributed to the entity's profit growth during the year."