GlaxoSmithKline (NYSE:GSK) Pharmaceuticals Limited (GSK Pharma) witnessed a surge in its share price on the Bombay Stock Exchange (BSE), climbing to ₹1,449.65 per share on Thursday. This rise was primarily attributed to a year-on-year gross margin increase of 280 basis points to 63%, resulting from an optimized product mix and reduced raw material costs.
Today, the company's shares are anticipated to see further growth following the release of Q3 results that surpassed market expectations. The pharmaceutical giant reported an 11.6% YoY net profit increase to ₹216 crore ($28.7 million) and a 5% YoY revenue hike to ₹953 crore ($126.7 million). These robust results were driven by high vaccine demand and market share gains in key promoted brands.
Looking ahead, GSK Pharma projects double-digit YoY growth over the next two to three years, fueled by investments in focused brands, specialty product launches, and volume growth. The company's strategic focus will be on general medicines and pediatric vaccines, with a forecasted 7% revenue compound annual growth rate (CAGR) over the forthcoming two years.
Investment firm Motilal Oswal has maintained a 'Neutral' rating on GSK Pharma's stock but revised its target price upwards, citing an improved vaccine outlook and gains in key promoted brands as pivotal factors influencing this decision.
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