Weak financials, impairment charge ail GSK Pharma; stock falls over 12%

Trading at 41x its FY21 earnings, most analysts have 'sell' rating

An impairment charge and weak financial performance led to an over 12 per cent fall in the GSK Pharmaceuticals stock on Tuesday.

In addition, the company — as part of its strategic review — is looking at options including sale of its Vemgal facility in Karnataka.

The financial impairment was on account of a global voluntary recall of ranitidine (antacid) products, which include its top brand Zinetac in India. 

The move was prompted by the detection of a carcinogen in the drug, with the firm indicating it would continue its probe into the potential source of the carcinogen. 

It reported a Rs 660-crore loss