GSK Pharma says sales continue to be hit due to trade issues

In the major pockets of the country company's products are not being purchased by the traders from September 15, 2013

Drug maker GlaxoSmithKline Pharmaceuticals today said its sales continue to be affected in the major pockets of the country as its products are not being purchased by stockists and retailers from September 15, 2013.

"It has come to our knowledge that in the major pockets of the country our products are not being purchased by the traders from September 15, 2013. On account of the above, sales of the company continue to be affected," the company said in a statement.

No reason was immediately attributed for this trend but earlier in August the company had said a number of its products have come under the Drug Price Control Order (DPCO) 2013 which has come into effect in May 2013, resulting in reduction of prices of the company's drugs.

"The company estimates 5% impact on an annualised basis on its sales and turnover," it had added.

Commenting on today's development, Angel Broking (VP- Research, Pharma) Sarabjit Kour Nangra said: "After the passage of the new DPCO, the company's sales have been impacted. For 2QCY2013, the company's sales declined by almost 2.3%."

Shares of GlaxoSmithKline Pharmaceuticals today closed at Rs 2,490.95 per scrip on BSE, up 0.88% from their previous close.