Burroughs Wellcome, on the other hand, registered a 3.3 per cent decline in net profit to Rs 12.46 crore for the six months ended June 30, 2000, as against Rs 12.89 crore in the corresponding period of the previous year. Net sales for the period increased by 14.8 per cent to Rs 93.65 crore as against Rs 81.55 crore in the previous year.

Glaxo India and Burroughs Wellcome managing director HR Khusrokhan told mediapersons that the restructuring in Glaxo Wellcome's pharmaceuticals business had paid off and both companies had, in the first half, collectively achieved growth well above market growth of around 10 per cent. Growth at the Biddle Sawyer group has been pegged at 32.1 per cent during the first six months of 2000.

"The market has been very competitive and highly discount-oriented. As a policy we have stayed away from trade offers. But we have now put some of our cough and cold products on trade offers, though this rarely exceeds four per cent" he said.

Glaxo India finance director Mehernosh B Kapadia said that the Agrivet FArm Care business grew by 16.4 per cent, while the Qualigens Fine Chemicals business improved by over 20 per cent during the first half.

Glaxo has also followed a conscious strategy of pumping in monies realised from the sale of tail end brands to grow brands with greater potential. The company had disposed of Multivite FM to Banner Pharma, Macraberin to Universal Medicare and Derobin to US Vitamins. Glaxo India made profits of Rs 15.50 on the sale of brands during the six months ended June 30, 2000.

The last six months had also seen the launch of an international block-buster for the treatment of asthma, Seretide Accuhaler, and Hepitec, the world's first oral treatment for hepatitis B via Glaxo India. The Seretide Accuhaler launch will be followed by extensions like the metered dose inhaler (MDI). New introductions in Burroughs Wellcome include Combivir and Drapolene cream. Khusrokhan added that new launches on the anvil include Zoderm and Lamictal.

Exports of ranitidine to group companies had declined to Rs 8 crore in the first half of 2000 as against Rs 11 crore in the corresponding period of the previous year.

Firm to take up price-cut issue
Glaxo India is like to "take up" the issue of the recent price reductions in sulphamethoxazole through the appropriate industry association. The NPPA had recently slashed the prices of sulphamethoxazole bulk to Rs 330 per kg from Rs 419 per kg Khusrokhan said that the price reductions in sulphamethoxazole and trimethoprim was likely to affect Glaxo Wellcome to the tune of around Rs 2 crore. However, the company is set to register gains of roughly nine per cent (at the formulation level) following the price hike in betamethsone.