Industry Profile: Indian Pharmaceutical sector is among the fastest-growing markets and is third-largest by volume and thirteen by value. It is expected that the Indian pharma industry will grow by 15% CAGR between 2015-20. The Indian pharmaceutical industry is expected to become $55 billion by 2020, emerging as the sixth-largest pharmaceutical market by absolute size. India is the largest supplier of generic drug global exports, with 20% by volume. Indian companies supply 80% of Antiretroviral drugs used against AIDS worldwide. India maintains its lead over China in pharmaceutical export with 11.44% year-on-year growth to $12.91 billion. Drug approval to Indian pharma from US FDA is also increased by nearly double, but with substantial inspections, the biggest problem for many Indian companies now.
All due to support from govt of India, the sector is thriving and surviving against global competition. The farmaceutical industry is permitted to receive 100% FDI under the automatic route, so the sector attracted FDI inflows of about $ 14.53 billion between April 2000 and December 2016. many Global companies like Abbott and GSK are investing in India. In addition, the UN-backed Medicine Patent pool signed six sublicenses with Aurobindo, Cipla Disano, Emcure, Hetero Labs, and Laurus Labs for manufacturing anti-AIDS medicine for 112 developing countries.
Company Profile: GSK is a subsidiary of global pharma giant GSK plc. GlaxoSmithKline plc, incorporated on December 6, 1999, is a global healthcare company. The company operates through three segments: Pharmaceuticals, Vaccines, and Consumer Healthcare. The company is one of the world’s largest research-based pharmaceutical companies that discovers, develops, manufactures, and markets human health products. It is an innovative company that produces branded products only, which it has set itself. The company’s prescription medicines range across therapeutic areas. It also offers a range of vaccines to prevent life-threatening diseases, such as pneumococcal disease, meningitis, hepatitis, rotavirus, whooping cough, smallpox, and influenza. In addition, it provides healthcare solutions to patients, with a range of prescription medicines across areas covering anti-infectives, dermatology, gynecology, diabetes, oncology, cardiovascular disease, and respiratory diseases. The company’s manufacturing unit is in Nashik, and its clinical development center is in Bangalore.
Shareholding Pattern: BSE Data
Financials and ratios : [table id=117 /]
Prospects: the company is concentrated on research-based manufacturing, which is a double-edged sword. You need to spend money, and then you will make money. After a particular time, the patent will finish, and the time for the exclusivity will end. The balance sheet is looking strong, with zero infusion of equity. But hardly is there any significant growth in the top line on a standalone basis. March 17 performance is looking good. Now, if the trend continues, then it is good. On assets, it’s one of the best companies but on financials. I can’t say it’s good.
