GSK India arm’s Q3 profit falls on government price cap

GlaxoSmithKline Pharmaceuticals, the Indian unit of the UK's GSK, reported a 3% fall in third-quarter profit on Monday, hurt by the government's pricing cap on certain medicines. GlaxoSmithKline, which derives most of its revenue from India, continued to grapple with challenges following the inclusion of its key products such as Ceftum antibiotic and T-Bact ointment in the country's National List of Essential Medicines (NLEM) in September 2022, mandating sales below a government-set price ceiling. The company, which makes Augmentin antibiotic, incurred a one-time charge of 1.63 billion rupees, related to the cost of a voluntary retirement scheme and other employee dues.