Shares of drugmaker Abbott India were rising on Friday after the company posted strong fourth-quarter results.
What Happened: The company reported a 24% rise in fourth-quarter profit on Thursday, as strong sales outpaced the impact of government pricing caps on certain medicines.
The company, which makes the popular antacid medicine Digene, said its profit rose to ₹287 crore for the three months ended March 31, from ₹231 crore a year earlier. The figures were far ahead of analyst estimates.
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Revenues of drugmakers such as Abbott India and GlaxoSmithKline Pharma India, which get most of their business from India, have been impacted after the inclusion of some of their drugs in the government’s essential medicines list in September 2022, making them susceptible to price caps.
Abbott, which is a unit of U.S. healthcare firm Abbott Laboratories, has been trying to mitigate the impact of pricing curbs by driving up sales and cutting back on expenses.
The company, which makes drugs including hypothyroidism treatment tablets Thyronorm, said its revenue from operations rose 7% to ₹1,439 crore in the fourth quarter.
The company declared a dividend of ₹410 per share for fiscal year 2024.
Price Action: Abbott India’s share price was up 1.93% at ₹26,056.65 near the start of trade on Friday.
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