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Q1 profit may be impacted due to COVID-19: GSK Pharma

In a regulatory filing disclosing material impact of COVID-19, the company said it has seen a slowdown in sales across some of its therapeutic areas during the first quarter mainly from deferment of vaccination at clinics and slowdown in the non-essential portfolio.

Q1 profit may be impacted due to COVID-19: GSK Pharma
Despite initial disruptions in supply chain due to the lockdown, GSK Pharma said it has been able to smoothly manage supply chain operations during the period.

GlaxoSmithKline Pharmaceuticals on Thursday said its performance and profitability may be impacted in the first quarter of the ongoing fiscal due to the coronavirus pandemic.

In a regulatory filing disclosing material impact of COVID-19, the company said it has seen a slowdown in sales across some of its therapeutic areas during the first quarter mainly from deferment of vaccination at clinics and slowdown in the non-essential portfolio.

“While the performance and profitability of Q1FY21 may be impacted, we are ramping up our capacities in some of the other therapeutic areas that are essential to our patients in the current circumstances and charting a plan to accelerate growth once the lockdown is eased,” it added.

Despite initial disruptions in supply chain due to the lockdown, GSK Pharma said it has been able to smoothly manage supply chain operations during the period.

“On the manufacturing side, we are currently operating at about 70 per cent of normative manufacturing levels and are hopeful to improve this in the coming days. Both at company level and at channel level sufficient levels of inventory are maintained to meet the patient requirements in the near term,” it added.

Stating that there is no impact on its capital and financial resources, the company said it is “debt-free and carried cash and cash equivalents of around Rs 1,066 crore as of March 31, 2020”, and none of the assets of the company have been impacted or impaired as a result of the pandemic.

“While our head office at Mumbai remains closed during the lockdown, we were efficiently able to continue our operations as the company has adopted the work-from-home policy. The head office will commence after necessary clearances are received from the local authorities,” the company said.

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