GlaxoSmithKline Pharmaceuticals, a leading MNC in India, failed to maintain its growth rates during the first half of 2007. Its net profit increased by 8 per cent to Rs 207.75 crore from Rs 192.29 crore basically due to higher other income, rise in interest income and reduction in consumption of raw material. The company's net sales declined by 2 per cent to Rs 817.07 crore from Rs 833.50 crore. The earning per share worked out to Rs 24.5 as against Rs 23 in the last period.

The company's other income increased by 47.4 per cent to Rs 37.76 crore and interest income went up by 38.3 per cent to Rs 20.65 crore from RS 14.93 crore. The total cost of raw material also declined to Rs 324.19 crore from Rs 344.36 crore. Thus the higher other income and interest and lower cost of raw material assisted the company to push its profit level.

The company has decided to sell its Qualigens Fine Chemicals (QFC) business to Thermo Electron LLS India Pvt Ltd, a subsidiary of Thermo Fisher Scientific Inc.,(TFC) a leading American company for a total consideration of Rs 240 crore. QFC division was engaged in the manufacturing and marketing a range of fine chemicals, diagnostic kits and laboratory products including glassware, culture media, instruments and filter papers. QFC is the market leader in India for laboratory chemicals with an extensive distribution network covering the entire country.

Dr Hasit Joshipura, managing director, GSK, said, "Under the GSK umbrella, QFC has had an excellent track record which has enabled the business to develop into a market leader in its area, with great contributions from is excellent and skilled workforce. For further growth, infusion of new technology and products are necessary. The business has great potential and significant value would be unlocked through its appropriate placemen within a global leader in laboratory chemicals and allied products."

He further added, "There is a synergistic it with TFS, a global leader in the field and the QFC business would benefit enormously through the range of products and technologies, which TFS would be able to provide employees will be benefited by the expertise that TFS brings with it, in addition to providing a much broader canvas for leveraging their skills and capabilities and provide future growth options."