New launches to prop sales recovery as GSK Pharma gets over Zinetac pain

Near-term gains may be limited given restrictions which will impact anti-infectives portfolio

The GlaxoSmithKline Pharmaceuticals (GSK Pharma) stock has underperformed the overall pharma market over the last one year on account of lower sales in the anti-infectives category.

The company recently sold its Vemgal plant in Karnataka to Hetero Labs for Rs 180 crore. The plant had remained unutilised after the company took a decision to discontinue production of heartburn drug Zinetac. The company took a Rs 640 crore write-off last year and was looking at a buyer for the plant.

Given that the book value of the assets stood at Rs 375 crore, the company will take a Rs 195 crore