GlaxoSmithKline can benefit largely from the aniticpated new DPCO order and this has the market rooting for the scrip.

In fact, good market support saw the scrip of the pharma MNC gain 1.26% to Rs 302.25 on BSE by 14:25 IST. By then, it had moved between a low of Rs 297.45 and a high of Rs 304.80. A total of 20,554 GlaxoSmithKline shares changed hands on BSE by that time.

GSK has now risen 9.43% to its current levels from its 52-week low of Rs 276.20 on 17 February 2003. In the 10 prior months, the scrip lost 38% to its 52-week low from its 52-week high of Rs 445 on 18 April 2002.

The scrip is being pursued currently for its valuation. The stock had been slipping over the last few months due to a lack of trigger. However, over the last few sessions, domestic brokerage Enam Securities was believed to have acquired the stock on value buying.

Things could take a turn for the better for the GSK stock once the Drug Price Control Order is released. GSK is expected to be a major beneficiary of the new order as it has a very high portfolio of price-controlled products, which constitute about 65% of its sales.

Earlier, GSK said it expects a 50% rise in earnings this fiscal through its focus on 30 power brands and cost-cutting measures. Sales are likely to rise by 10%. As per reports, the company will focus on power brands in segments like anti-asthma and anti-infection drugs, vitamins and vaccines. These are expected to contribute 65-70% to the company's turnover in the next 2-3 years, from the current 60%.

GSK is the merged entity of erstwhile Glaxo India and SmithKline Beecham Pharmaceuticals India. The Indian merger followed the international merger of GlaxoWellcome and SmithKline Beecham to create Glaxosmithkline last year. However, Burroughs Wellcome still remains a separate entity in India due to differences in salary structure.

GlaxoSmithKline Pharmaceuticals' pharma division accounts for 77% of the company's sales, while the remaining 23% comes from other divisions.

For the third quarter ended September 2002, GSK reported a 55% rise in net profit to Rs 37.38 crore on a marginal 5% increase in net sales to Rs 297.35 crore (Rs 2.97 billion).

As on 31 December 2002, the promoter held 48.83% stake in GSK, while the public and institutions held 22.83% and 23.95% respectively