After March blip, Glaxo talks double digits

GSK Pharma, which came short of estimates in the March quarter, is optimistic about growing in line with the overall pharma industry.

Hasit Joshipura, VP South Asia and MD, India, GSK Pharma, said the Indian unit of multinational drug maker Glaxosmithkline would look at being in line with the 13-15% growth of the industry.

The March quarter was disappointing for the company, with core pharma sales growth being a minuscule 7%, against the 20-22% for the industry, as per estimates by All India Organisation for Chemists and Druggists.

“This quarter was a bit slow due to pipeline adjustment. We are hopeful that sales will improve in line with the industry,” said Joshipura.

He said with regards to its patented products, the company would price them at a rate suitable for the Indian market.

Few years ago GSK had launched breast cancer drug Tykerb in India at 25% less than its global price. Joshipura said its other innovator products like Votrient and Revolade, both cancer drugs, were launched last year at 30% less than their global prices.

According to an analyst, differential pricing is becoming a necessity for Big Pharma to get a strong foothold into the highly fragmented Indian market.

“No firm can ignore the fact that Cipla has cut its prices drastically, even if those price cuts were in different therapeutic categories. To expand reach, firms have to price differently for India,” said the analyst.

The firm will also look at introducing four to five branded generics this year in India. Moreover, vaccines will grow to become a key component of the Rs2,378 crore company’s portfolio.

In an earlier interaction, senior executive director Mehernosh Kapadia had said from about 11%, vaccines will grow to 17-18% of the company’s overall sales in the next three to four years.