GSK Slips 4% On VRS, Factory Sale

Mumbai, September 25: | Updated: Sep 26 2002, 05:30am hrs
The stock of pharma major, GlaxoSmithKline (GSK) slipped on rumours that the company may sell off its 50-acre plot and factory at Ankleshwar and that this may be a setback for its most popular drugs that contribute majorly to its revenues.

On The Stock Exchange, Mumbai (BSE), the stock of GSK closed at Rs 268.15, down 3.7 per cent from its previous close at Rs 278.55.

The stock of the pharma major clocked a meagre volume of 700.

Dealers said that the fall in GSK was also on the back of reports that the company is offering a voluntary retirement scheme (VRS) to its employees at its Ankleshwar unit. Dealers added that the VRS is a positive development in itself, but the deal offered seems to be on the higher side.

However, anlaysts are of the opinion that the good fundamentals of GSK as well as its strong foothold in terms of market share may propel the scrip back into action.

They remain bullish on the stock of GSK on the back of the companys sharp focus on profitable pharmaceutical brands, improved resource allocation of marketing spend as well as its tight control on expenses.