Launches may offer shot in arm for GSK Pharma

The stock of GlaxoSmithKline Pharmaceuticals, or GSK Pharma, has risen over 5 per cent in a week.

- RAM PRASAD SAHU

In the last one month, it has soared over 13 per cent, against a modest three per cent rise in BSE Healthcare index over the same period.

GSK Pharma's recent showing is on expectations that launches in the specialty segment, increasing investments in promotions and branding, foray into new segments and traction for its vaccines business are expected to drive gains.

This coupled with better than expected performance in the March quarter (Q4FY24) led to a 37 per cent rise in the stock price over the last three months. While brokerages expect a turnaround in its base business as well as gains from new launches, this is already factored into valuations. Given the valuations, further gains from these levels for the stock are unlikely.

In the near term, the Street will keep an eye out for growth. The company had posted a doubledigit revenue growth across its key segments of general medicine, specialty and vaccines in the March quarter.