UPDATE: GlaxoSmithKline Pharmaceuticals 2Q Net Profit Rises 4%

26th Jul 2010 12:33

(Adds executive's comments on earnings, product launches) By Rumman Ahmed Of DOW JONES NEWSWIRES BANGALORE (Dow Jones)--GlaxoSmithKline Pharmaceuticals Ltd. (500660.BY) Monday reported a muted 4% rise in its second-quarter net profit, primarily because sales of vaccines were hurt due to supply constraints. The Indian unit of GlaxoSmithKline PLC (GSK.LN) said its net profit for the quarter through June increased to INR1.29 billion from INR1.24 billion a year earlier. Sales grew 9% to INR4.98 billion from INR4.57 billion. "The availability of vaccines started improving towards the end of the (April-June) quarter. We are hoping that going forward that issue will ease out," Senior Executive Director Mehernosh Kapadia told Dow Jones Newswires. Kapadia said there were issues related to the supply of vaccines from its parent, but he didn't elaborate. The company sells vaccines such as Rotarix for rotaviral diarrhea and Cervarix for the prevention of cervical cancer. It also sells popular drugs such as Calpol paracetamol tablets, Augmentin antibiotics and Neosporin eye drops. Kapadia said overall sales were also sluggish as exports were lower. He didn't give any details. The company's total costs rose 7.4% to INR3.20 billion from a year earlier. Kapadia said cost controls and better revenue mix helped improve the operating margin to 37.6% for the second quarter from 35.8%. He reiterated an operating margin expectation of 33%-35% for 2010. Kapadia said the product launches scheduled for this year could include two branded generic drugs and another patented drug licensed for sale in India. The launch of pneumonia vaccine Synflorix; Promacta, a drug developed by its parent to treat low platelet counts and spontaneous bleeding; as well as a drug each for renal and blood cancer, which was earlier expected this year, is now likely to happen in 2011, Kapadia added. -By Rumman Ahmed, Dow Jones Newswires; 91-9845104173; [email protected] (END) Dow Jones Newswires July 26, 2010 07:33 ET (11:33 GMT)