GlaxoSmithKline Pharmaceuticals (GSK) has posted better financial performance during the year ended December 2005 and its net profit before exceptional items moved up by 15.1 per cent to Rs 306.28 crore from Rs 266.05 crore in the previous year. The company's net sales increased by 8 per cent to Rs 1485.30 crore from Rs 1375.89 crore. The earning per share before exceptional items worked out to Rs 35.7 as against Rs 30.5 in the preceding year.

With strong cash flow, the Board of Directors recommended a total dividend of 280 per cent for the year 2005. Dividend will absorb an amount of Rs 135.2 crore inclusive of the dividend distribution tax. Pursuant to the buy back of shares, its equity capital stood at Rs 84.70 crore and the promoter shareholding worked out to 50.7 per cent.

The pharmaceutical sales increased by 8.6 per cent to Rs 1286.35 crore from Rs 1179.17 crore. The sales of new products and line extensions reached Rs 97.8 crore in 2005 as compared to Rs 72.6 crore in the last year. The company showed exceptional items of Rs 195.80 crore during the year mainly in respect of profit on sale of two properties located at Mulund.

While talking to press in Mumbai, S Kalyanasundaram, managing director, said, "The focus on priority products and their sterling performance have helped us report robust sales for the fourth successive year. There are two seminal areas on which we have leveraged our expertise and resources in the past year i.e. value addition to the parent company's global R&D through clinical research and a unique India-centric strategy. Our ability to understand science behind new medicines obtained through clinical research and data coupled with our expertise in medical communication, will give us cutting age presence in a highly competitive market."

GSK launched four new products licensed from companies in the US and Japan viz. Parit (rabeprazole) in alliance with Eisai, Japan, Ferronine (a novel chelated iron) in alliance with Albion, US and two new oral contraceptives in alliance with Organon. GSK also entered the diabetes segment through the launch of Windia and Windamet.

"India has been identified as a major centre for clinical research across a number of disease areas such as breast cancer, central nervous system related disorders and infectious diseases. GSK India has made excellent progress in the last two years and has proven itself for its quality, speed and cost effectiveness," said Kalyanasundaram.

Projecting future, Kalyansundaram said that the company will achieve net profit growth in the range of 10% to 15% in 2006 with more focus on new priority products. The company is in process of R&D for new malaria molecules, which is likely to launch in 2008. Further, it is also working on finding out new TB drug. GSK has signed licensing agreement with Roche for the molecule, Carvedilol. It is also looking out to launch asthma products at affordable price in near future.

Kalayansundaram pointed out that several MNCs are waiting for positive government policies in respect of data exclusivity and patent for commissioning R&D activities in India.