GSK Pharma
GSK Pharma disappointed with a not-so-encouraging set of numbers for first quarter ended 31st March 2014. The MNC posted a 43% (YoY) fell in net profit at Rs.96 crore and this was on account of a decline in topline. Its net revenue fell from Rs.630 crore to Rs.600 crore. The fall in the bottomline would have been much sharper but for the 26% lower tax outgo at Rs.52 crore. Its other operating income also rose from Rs.4 crore to Rs.10 crore.
Currently, this performance apart, the company is in the news for all the wrong reasons. The parent company is currently investigating allegations that it paid bribes to doctors in five countries – Poland, Irag, Jordan, Lebanon and China. In fact, it faces the biggest charges in China, where it is accused to bribing doctors to the tune of $483 million to motivate them to push its medicines instead of the competitors. The company now plans to employ scores of doctors as members of its staff thereby cutting commercial ties with ‘outside’ doctors.
Like almost all MNCs, it is also debt free. Its reserves as at 31st Dec 2013 stood at Rs.1932 crore. The company recently concluded its open offer by the UK parent company to acquire 24.33% stake and this was at a price of Rs.3100/share. It received full subscription thereby helping the promoters increase their shareholding to 75%. It is interesting to note that amongst all the open offers through the year from various MNCs, GSL Pharma was the only one to get full subscription.