Domestic Pharmaceuticals sales of the GlaxoSmithKline group companies in India recorded a growth of 5% during the three months ended 31 March, 2003. The focus brands registered growth levels which were significantly higher than the average growth for the business as a whole. In addition, the confusion prevailing around the proposed implementation date of VAT and related issues impacted sales and resulted in a slowdown in purchase by the trade in March 2003.

GlaxoSmithKline Pharmaceuticals Limited recorded a sales growth of 2.2% for its pharmaceuticals business. Export sales during the quarter declined by 42% mainly due to the cessation of Ranitidine exports post the Ankleshwar site closure; this has impacted the Company's overall sales performance during the quarter ended 31 March, 2003.

Sales of Biddle Sawyer Limited, a wholly-owned subsidiary, grew by 11.4% during the quarter.

The Profit after Tax and before Exceptional Items of GlaxoSmithKline Pharmaceuticals Limited registered a growth of 34.8% during the first quarter of 2003.

Commenting on the performance, Kal Sundaram, Managing Director, said: “This significant growth in profit, despite a flat market, is due to the strong demand generation for the focus brands. This resulted in higher sales of the profitable brands, improved product mix and better margins. Procurement and manufacturing efficiencies and tight control on expenses also helped improve profits for this period.”