GSK Pharma Analyst Meet Takeaways - A Mixed Bag: Motilal Oswal
“Shingrix” launch soon; WPI to mitigate the impact of price cut under NLEM
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Motilal Oswal Report
We attended the analyst meet of GlaxoSmithKline Pharmaceuticals Ltd. to understand the company’s business outlook over the next two to three years.
Key highlights of Analyst Meet
GSK Pharma guided for high single-digit revenue growth over FY23-25, driven considerably by volume.
While there would be an adverse impact of price reduction due to the inclusion of ‘Ceftum’ and ‘T-Bact’ under the National list of essential medicines, GSK Pharma is expected to mitigate the impact through higher volume sale.
Further, the company is focussed on launching its ‘Shingrix’ vaccine. The company’s ongoing cost optimisation measures would also aid in driving up its profitability.
Unlike peers in the domestic formulation industry, GSK Pharma is expected to have fewer new launches in the market. It plans to focus on market share gain in its existing products through life cycle management and increasing their reach.
The wholesale price index-led price increase is expected from April 2023, which would also partially offset the adverse impact of price reduction under NLEM.
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