CMP-1199
GlaxoSmithKline Pharmaceutical a 95 years old Indian Subsidiary, 100% debt free company is a part of GlaxoSmithKline plc (GSK) a British multinational pharmaceutical company headquartered in Brentford, London.I t is one of the oldest pharmaceuticals companies in India. Its product portfolio includes prescription medicines and vaccines. Its prescription medicines range across therapeutic areas such as anti-infectives, dermatology, gynaecology, diabetes, oncology, cardiovascular disease and respiratory diseases. It also offers a range of vaccines, for the prevention of hepatitis A, hepatitis B, invasive disease caused by H, influenzae, chickenpox, diphtheria, pertussis, tetanus, rotavirus, cervical cancer and others. The company focuses on its research across six areas: Respiratory diseases, human immunodeficiency virus (HIV)/infectious diseases, Vaccines, Immuno-inflammation, Oncology and Rare diseases. The Company develops a range of prescription medicines, vaccines and consumer healthcare products.
The Vaccines business provides vaccines for people of all ages from babies and adolescents to adults and older people. It delivers over two million vaccine doses per day to people living in over 160 countries
Parent History-:
GlaxoSmithKline plc (GSK) is a British multinational Established in 2000 by a merger of Glaxo Wellcome and SmithKline Beecham, GSK was the world’s sixth largest pharmaceutical company as of 2015, after Pfizer, Novartis, Merck, Hoffmann-La Roche and Sanofi.
The parent company completed the acquisition of TESARO, Inc. an oncology-focused company in January 2019. The transaction, which was announced in December 2018, significantly strengthens its oncology pipeline and brings new scientific capabilities and expertise that will increase the pace and scale at which it can help patients living with cancer
One of the highlights of FY 2019 was the launch of Nucala® (Mepolizumab), a humanised monoclonal antibody which is indicated as an add-on treatment for severe refractory eosinophilic asthma in adult patients.
The company is forging ahead on the innovation front, with the recent launch of Nucala, a biologic for severe refractory eosinophilic asthma in adults.
India has around 30 million asthma patients and Nucala will bring significant relief to those among them who suffer from severe eosinophilic asthma. In addition, this breakthrough innovation will also strengthen the respiratory portfolio to better serve the patients. The commercial and medical teams are actively engaging with pulmonologists in the country to disseminate the robust data on Nucala.
With an investment of over Rs 1000 crore, its upcoming manufacturing facility at Vemgal, Karnataka, will be the first greenfield pharmaceutical manufacturing site that GSK has built globally over the past ten years. It is also the first facility designed for the new GSK Production Systems (GPS), whereby it will deliver the concepts of zero accidents, zero defects and zero waste.
To put it in perspective, the company’s March 2019 gross block on consolidated basis is just Rs 561 crore. Thus once the new site is commissioned gross block is expected to almost triple.
FINANCIAL HIGHLIGHTS-:
FY 2019 consolidated results. Consolidated sales grew 8% to Rs 3128.12 crore for FY 2019. OPM improved 170 basis points to 19.2% which saw OP go up 19% to Rs 600.79 crore. Over the past the topline growth of the company has remained flat but going forward we expect it to imporove Significantly.
Company has cash and equivalents of about 1170 cr as of march 2019 which puts it as a great advantage to spend on better R&D as compared to other companies struggling to manage working capital. Apart from the company does not have any debt where as the reserves stand at 1900Cr Rs.
Currently the Stock is trading at its near 52 Week Low 1130 Rs . The stock is also down about 33% from its 52 Week High.
