KARACHI: GlaxoSmithKline (GSK) Pakistan has announced to spend Rs1.03 billion for brand building and sustainable investment activities in the country.
“GSK Pakistan has received promotional allowance (which for the year 2018 is Rs1.03 billion) from GlaxoSmithKline Trading Services Limited for brand building and sustainable investment activities,” a bourse filing said.
Promotional allowances are reductions in the price of products that suppliers offer trade partners to carry out additional promotional activity in support of suppliers’ products.
GlaxoSmithKline’s pharmaceutical business delivered net sales of Rs.22.1 billion reflecting a growth of 5.6 percent for the quarter ended September 30, 2018. Within the core pharmaceutical business, there were strong performances from antibiotics, analgesics and dermatology portfolios.
GSK notes in its latest quarterly report, the volatile economic situation and devaluation of the Pakistani Rupee is impacting cost base and margin, resulting in significant challenge to meet expectations.
“During this quarter, the new government has taken over. Although it is still in its early days, we are looking forward to the new Government’s roadmap to stabilize the economy and support private sector growth,” the report said.
The 2018 drug pricing policy has come into effect and outstanding hardship cases that were remanded back to the regulator (DRAP) by the Supreme Court of Pakistan (SCP) have now been reviewed under this new policy.
“We are awaiting the outcome, pending completion of the process at the federal government’s end. For the matter related to the 15 percent price increase accorded to the industry vide SRO 1002, several pharmaceutical companies have filed a review petition before the SCP to seek clarity on whether or not this remains intact,” the report added.