Pharmaceutical company, GlaxoSmithKline Pharmaceuticals (GSK India), informed the stock exchange that the company has seen a slowdown in sales across some of its therapeutic areas during the first quarter of FY21. However, there is no impact on capital and none of the company assets have been impacted or impaired as a result of the pandemic.
In the BSE filing, GlaxoSmithKline Pharmaceuticals informed the investors, “There is no impact on capital and financial resources of the company. The company is debt-free and carried cash and cash equivalents of around Rs 1066 crore as of March 31, 2020.”
The company said the drop in sales in some of the therapeutic areas is mainly from deferment of vaccination at clinics and slowdown in the non-essential portfolio. It said, “While the performance and profitability of Q1FY21 may be impacted, we are ramping up our capacities in some of the other therapeutic areas that are essential to our patients in the current circumstances and charting a plan to accelerate growth once the lockdown is eased.”
The company added that the investment it made in digital has been highly productive at this point.
The company did face supply chain disruption initially, but now everything is smooth. Meanwhile, on the manufacturing side, GSK India is currently operating at about 70 per cent of normative manufacturing levels. But the company is hopeful to improve this in the coming days. “Both at company level and at channel level sufficient levels of inventory is maintained to meet the patient requirements in the near term,” it added.
The company reiterated that it is meeting all its financial obligations regularly. GSK India has discharged all its obligations in full on payroll (including all contractual workers) till May 2020. “Company continues to discharge its obligations towards its creditors in the regular course of business and has ensured that all statutory obligations have been paid within due dates.”
