Glaxosmi. Pharma

GlaxoSmithKline Pharmaceuticals Limited delivered a strong Q3 FY25, with revenue growing 18% year-on-year. This growth was broad-based, with all business segments—general medicine, vaccines, and specialty portfolio—achieving double-digit growth. EBITDA for the quarter stood at ₹290 crores, marking a 33% increase year-on-year, and the EBITDA margin expanded by 370 basis points to 30.7%. The company also reported a healthy cash flow with 100% conversion of profit into cash and remains debt-free.

The general medicines portfolio demonstrated robust performance with an 11% underlying volume growth, supported by strategic initiatives like digital acceleration and the India Infection Index. The specialty portfolio, including key brands like Nucala and Trelegy, grew by 37%. The total vaccines portfolio, encompassing both pediatric and adult vaccines like Shingrix, also recorded a 15% growth. Management emphasized a consistent focus on delivering competitive and ahead-of-market performances across these core segments.

GSK is committed to bringing innovative assets to the Indian market. Two new oncology assets, indicated for gynecological malignancies (endometrial and ovarian cancer), are slated for launch by Q2 FY26. These launches are expected to significantly contribute to the company's growth ambition. Additionally, existing innovative products like Nucala and Trelegy continue to grow strongly, with Trelegy's category nearing ₹100 crores and holding a 5-5.5% market share. The combined revenue potential of Nucala, Trelegy, and Shingrix is estimated at ₹150-200 crores in the immediate 12-month financial year.

A key growth platform for GSK is adult vaccination, led by Shingles awareness campaigns. The company is actively investing in building this ecosystem, focusing on educating consumers about risk factors and prevention. This involves innovative campaigns across TVCs and digital platforms. While acknowledging that creating a new category requires patience and investment, GSK sees new wins each quarter, with 2500 healthcare practitioners now consistently vaccinating adults. The long-term vision includes a bouquet of adult vaccines beyond Shingrix.

The company has made significant progress in margin evolution, with the SG&A ratio improving by almost 2% of sales. This is attributed to dialling up efficiencies in the business over the past two years. Management stated that efforts have been made to sort out issues related to raw material prices and inefficiencies, leading to stabilized margins over the last couple of quarters. The ongoing commitment is to sustain these margins, positioning GSK in the top quartile of pharma companies.

Management acknowledged the overall slowdown in the Indian Pharma Market (IPM) but highlighted that GSK's growth has been volume-led, particularly in anti-infectives, dermatology, and pain. The company's diversified portfolio, with 12 brands exceeding ₹100 crores each, provides a unique vantage position. GSK aims to leverage its strong base business while accelerating the launch of new innovative assets, including those in oncology, hematological malignancies, and hepatology, with global clinical trials in India enabling faster access to these assets.