Glaxo Wellcome to launch Sri Lanka's first pharmaceutical manufacturing plant

Boosting Sri Lanka's pharmaceutical manufacturing sector the international pharmaceutical giant GlaxoSmithKline's firm in Sri Lanka Glaxo Wellcome Ceylon will launch the country's first ever solid pharma production facility in Moratuwa on April 24. 

The state-of-the-art facility will produce a huge volume of 2.5 billion Panadol tablets, a brand of paracetamol annually. 

Industry & Commerce Minister Rishad Bathiyutheen has said that the new manufacturing unit will help stabilize domestic prices. 

The Minister has noted that the President Mahinda Rajapaksa, realizing the high dependency of local market on imported products and the need for setting up domestic production, had proposed in September 2011 that steps are necessary to be taken towards pharma imports substitution. 

"This new source of supply will boost our pharma manufacturing sector and will also help stabilise domestic prices," the Minister has said. 

"I believe that the new plant in Moratuwa will help us moving towards Strategic Import Replacement in our pharma market," he has added. 

Sri Lanka's competitive domestic pharma market is estimated to grow 11% annually. 

Only six local pharmaceutical manufacturers are currently active in Sri Lanka and the shortfall is met by imported products from more than 300 international manufacturers competing in the domestic market. The government spends around US$ 140 million annually for medicines alone. 

According to the Health Ministry, the country consumes US$ 350 million worth of pharmaceutical products annually and the government is the biggest consumer representing well over 35% of the domestic consumption of around US$ 130 million. 

Sri Lanka Ministry of Industry and Commerce has begun preliminary work to set up the first ever pharmaceutical manufacturing zone near the provincial capital of Kurunegala in the North Western Province.

GlaxoSmithKline Pharma net moves up by 10% in 2010, dividend at 400%

GlaxoSmithKline Pharmaceuticals, a leading MNC in India, has achieved satisfactory performance during the year ended December 2010 and stepped up equity dividend to 400 per cent as against 300 per cent in the previous year. The company's consolidated net profit increased by 10.4 per cent to Rs.560.57 crore from Rs.507.86 crore. It provided Rs.17.69 crore for revised gratuity limits and actuarial charge on post-retirement benefits as exceptional item during 2010 which impacted its bottom line.


Its consolidated net sales increased by 12.8 per cent to Rs.2151 crore from Rs.1908 crore. The other operating income went up by 65.4 per cent to Rs.30.98 crore from Rs.18.73 crore and it earned interest income of Rs.99.63 crore as compared to Rs.84.68 crore in the previous year. Its EBDITA improved by 14 per cent to Rs.789.62 crore from Rs.692.85 crore.


The company's standalone net profit increased by 10 per cent to Rs.563.69 crore from Rs.512.29 crore. GSK's standalone net sales increased by 12.9 per cent to Rs.2112 crore from Rs.1871 crore in the previous year. The pharmaceutical business grew by 14.3 per cent.

GlaxoSmithKline Pharmaceutical

Pharmaceutical business registered all round growth

GlaxoSmithKline Pharmaceuticals Ltd, Indian subsidiary of GlaxoSmithKline plc, one of the world's leading research based pharmaceutical and healthcare company registered 14% increase in net sales to Rs. 581.98 crore for the quarter ended September 2010. Its core pharmaceutical business grew at 15%. However, operating profit margins decreased by 110 basis points to 36.6% resulting in operating profit to increase by 11% to Rs. 215.96 crore. Increase in the interest income by 52% to Rs. 25.55 crore boosted the net profit. During the quarter, approval has been received for Revolade, a drug for low platelet counts and Votrient, for metastatic renal cell carcinoma. Commenting on the company performance for the quarter, Dr. Hasit B. Joshipura, Managing Director, said, The pharmaceutical business registered all round growth with the mass markets, mass specialties and specialties businesses all showing strong market competitive growth. The company gained market share during the quarter. Vaccines registered a handsome growth as well. New products launched in the last two years continue to accelerate growth Quarterly Performance: Total income from operations increased by 14% to Rs. 589.27 crore, which include other operating income (up by 13%) to Rs. 7.29 crore for the quarter ended September 2010. Operating profit margins contracted by 110 basis points on the back of increase in other expenditure by 80 basis points as percentage to sales and net stock adjustments. However, employee cost decreased by 90 basis points. During the quarter, Interest income increased by 52% to Rs. 25.55 crore, depreciation by 3% to 4.1 crore resulted PBT to increase by 14% to Rs. 237.41 crore. With rise in tax rate by 120 basis points to 33.34 restricted PAT before EO increase by 12% to Rs. 158.25 crore. Exceptional income (net of tax) mainly pertain to provision made on account of revised gratuity limits and accrual charge on post retirement benefits Rs. 0.44 crore restricted the net profit to increase by 12% to Rs. 157.81 crore. Nine months performance: Total income from operations increased by 14% to Rs. 1643.32 crore, which include other operating income Rs. 22.31 crore for the nine months ended September 2010. Operating margins improved by 50 basis points to 37.3% resulting operating profit to increase by 15% to Rs. 612.78 crore. Other income for the period is Rs. 18.00 crore. Increase in interest income by 6% to Rs. 66.11 crore and depreciation by 2% to Rs. 11.91 crore resulted PBT to increase 14% to Rs. 684.98 crore. After accounting tax Rs. 225.93 crore and EO expenses Rs.11.06 for the period, net profit was up by 10% to Rs. 447.99 crore.