Performance Analysis of Glaxo Smithskline Compared with Beacon Pharmaceuticals Limited

EAST WEST UNIVERSITY 

Assignment

PERFORMANCE ANALYSIS

OF

GLAXO SMITHSKLINE

COMPARED WITH

BEACON PHARMACEUTICALS LIMITED

Submitted By:

Submitted To:

Farzana Akter

Senior Lecturer

Department of Business Administration

Date of Submission:

05/04/201

GLAXO SMITHSKLINE

GlaxoSmithKline plc (GSK) is a British pharmaceutical company headquartered in Brentford, London. Established in 2000 by a merger of Glaxo Wellcome and SmithKline Beecham, GSK was the world's sixth largest pharmaceutical company as of 2015, after Pfizer, Novartis, Merck, Hoffmann-La Roche and Sanofi. Glaxo Wellcome and SmithKline Beecham announced their intention to merge in January 2000.The Company has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It reached a peak market capitalization of $175.8 billion in February 2001. By 1999, Glaxo Wellcome had become the world's third-largest pharmaceutical company by revenues (behind Novartis and Merck), with a global market share of around 4 per cent. Glaxo’s first pharmaceutical product was the vitamin D preparation, Ostelin, in 1924. Its products included Imigran (for the treatment of migraine), Salvutamol (Ventolin) (for the treatment of asthma), Zovirax (for the treatment of coldsores), and Retrovir and Epivir (for the treatment of AIDS). In 1999 the company was the world's largest manufacturer of drugs for the treatment of asthma and HIV/AIDS. As of 2013, GSK had offices in over 115 countries and employed over 99,000 people, 12,500 in R&D. GSK manufactures products for major disease areas such as asthma, cancer, infections, diabetes and mental health. Its biggest-selling in 2013 were Advair, Flovent, Augmentin, Lovaza, and Lamictal; its drugs and vaccines earned £21.3 billion that year. Glaxo Laboratories (Pakistan) Limited was incorporated having its registered office in Karachi. Initially it was a wholly owned subsidiary of Glaxo Group Limited. All establishments of Glaxo Laboratoies (Pakistan) Ltd. in the then East Pakistan was vested in the abandoned properties of the Government in 1972. Released from abandoned properties and permission was given by the Government to form a Company in Bangladesh in 1973. Packing of milk food commenced. Glaxo Bangladesh Limited was incorporated and the First Depot was opened at Bogra in 1974.

BEACON PHARMACEUTICALS

Beacon Pharmaceuticals Limited is the number one oncology company and one of the leading and fastest growing pharmaceutical companies of Bangladesh. The Company started its operation in 2006. Beacon has dedicated facilities to manufacture lifesaving oncology, Bio-Tech and Hi-Tech & conventional general products. The company manufactures more than 200 world class generic drugs and even successfully introduced a number global first generic drug. Beacon Pharmaceuticals Ltd manufactures and markets lyophilized anticancer, hormone, and other related pharmaceutical products.

1. Liquidity Ratio: 

[pic 1]

Current Ratio:

 Current ratio measured its current asset to pay its current liability. Current ratio of Glaxo SmithKline in 2010 was 2.593 that mean the company had TK 2.593 current assets to pay TK 1current liability .From 2011 to 2013 this ratio was declining to 1.689.Then 2014 it increased a little bit to 1.729. Current ratio in all the years below standard except 2010 as we know standard is (2:1) .Overall liquidity of this company is fluctuating.

On the other hand current ratio of Beacon Pharmaceuticals Limited was 2.623 in 2010 that means it had TK2.632 current assets to pay TK1 liability. Current ratio of this company was maintaining standard between 2010 and 2014.In 2012 the ratio was almost 2 which were equal to standard (2:1).Overall liquidity position of this company fluctuating.

So, current ratio of Beacon Pharma was quite better than Glaxo SmithKline from 2010 to 2014.

[pic 2]

Quick Ratio:

Quick ratio measured its current assets less inventory to pay current liability. Quick ratio of Glaxo SmithKline was 1.605 in 2010 that means it had TK1.605 current assets without inventory to pay its current liability. From 2010 to 2011 it decreased to 0.957 which was below standard (1:1). But it increased to 1.392 from 2012 to 2014 that was above standard.

On the other hand quick ratio of Beacon Parma was 1.068 that means it had TK1.068 current assets less inventory to pay its current liability. In 2012 the ratio was 0.887 which was below standard (1:1). But in 2013 and 2014 it was 1.091 and 1.029 which was above standard.