Firstcall India Equity Advisors recommends `Buy` on Glaxo SmithKline Pharmaceuticals with a price target of Rs 662 as against the current market price (CMP) of Rs 602 (Nov.11, 2009).
As per the broking house, for the third quarter, the top line of the company increased 12%YoY and stood at Rs 5182.80 million against Rs.4,637.10 million of the same period of the last year. The bottom line of the company for the quarter stood at Rs.1,410.80 million from Rs 1,319.70 million of the corresponding period of the previous year i.e., an increase of 7%YoY.
The broking house said, the company has emerged as frontrunner for a phased buy-in to Dr Reddy`s Laboratories. The US Food and Drug Administration (USFDA) has announced that Cervarix from Glaxo Smith Kline (GSK) was effective in blocking the cervical cancer virus. The company is seeking a nod from the government to market its patented drug for treating the contagious H1N1 virus, popularly known as swine flu. The company is looking at launching its patented medicine promecta, used in treatment of depleted platelet count, in India. The company has introduced 3 vaccines and 2 pharmaceutical products in 9MCY09. Company has got very good response for Rotarix and Cervarix vaccine. The company`s top line and bottom line is expected to grow at a CAGR of 11% and 15% over CY07 to CY10E.
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