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Glenmark consolidated net dips by 78%, scrip touches yearly low level

Our Bureau, Mumbai
Friday, February 9, 2018, 13:15 Hrs  [IST]

Glenmark Pharmaceuticals, a Rs. 8,970 crore pharma major, has suffered heavy setback during the third quarter ended December 2017 on account of lower sales in US by over 40% and its consolidated net profit declined sharply by 78 per cent to Rs. 105 crore from Rs. 477 crore in the corresponding period. EBITDA also declined sharply to Rs. 323 crore from Rs. 765 crore. Its net sales declined by 11.8 per cent to Rs. 2,172 crore from Rs. 2,463 crore and other operating income by over 55 per cent to Rs. 32.16 crore from Rs. 72.06 crore. With lower profits, EPS declined to Rs. 3.71 from Rs. 16.91 in the last period.

Glenmark scrip of face value of Rs. 1 each declined by Rs. 40 or over 7% in the morning session to Rs. 538.10 from previous day's close of Rs. 578.05. The scrip touched to yearly lowest level today a Rs. 524.20 due to poor performance.

Glenn Saldanha, chairman and managing director, said, “The overall performance was driven by our India, Europe, ROW and API business. The US business continues to be very challenging. The India business rebounded and has shown good sales growth due to improvement in the overall demand environment. We reported positive results of Ryaltris (formerly GSP 301) phase 3 safety trial in perennial allergic rhinitis. Glenmark plans to submit the company's first New Drug Application to the FD for Ryaltris for the treatment of patients with Seasonal Allergic Rhinitis (SAR) in the first half of CY2018. On the novel biologics side, we continue to make progress on our biological assets with GBR 1342, a bi-specific antibody targeting multiple myeloma by initiating phase 1 trials.”

Its sales for the formulation in India improved by 12 per cent to Rs. 579 crore from Rs. 517 crore. However, its subsidiary in US viz., Glenmark Pharmaceuticals Inc., received major setback and its US formulations sales declined by over 40 per cent to Rs. 736 crore from Rs. 1,231 crore. The US sales are not comparable to the corresponding quarter of the previous year as Glenmark through its partner Endo had launched Ezetimibe, generic version of ZETIA (Merck) in the US in December 2016 and was entitled to an exclusivity on the product.

Its revenue from Africa, Asia and CIS region improved by 28.3 per cent to Rs. 322 crore from Rs. 251 crore. Similarly, its European sales improved by 14.8 per cent during the third quarter to Rs. 225 crore from Rs. 196 crore. Its sales in Latin America declined by 5.2 per cent to Rs. 90 crore from Rs. 95 crore in the similar period of last year. APIs sales increased by 20.6 per cent to Rs. 232 crore from Rs. 192 crore.

For the nine months period ended December 2017, Glenmark's consolidated net sales improved by 2.7 per cent to Rs. 6,724 crore from Rs. 6,546 crore in the same period of last year. Its consolidated net profit declined by 29.7 per cent to Rs. 652 crore from Rs. 927 crore. EPS declined to Rs. 23.12 from s 32.87 in the last period.

Its US sales declined by 7.1 per cent to Rs. 2,508 crore from Rs. 2,700 crore and that in Latin America also declined by 27.4 per cent to Rs. 279 crore from Rs. 384 crore. Its domestic sales improved by 10.4 per cent to Rs. 1,906 crore from Rs. 1,727 crore and that in Europe moved up by 22.2 per cent to Rs. 587 crore from Rs. 480 crore. APIs sales improved by 10.4 per cent to Rs. 673 crore. Its sales in Rest of the World improve by 14.4 per cent to Rs. 801 crore.

Glenmark has marketing portfolio of 130 generic products for distribution in US market. It has 58 application pending various stages of approval process in US. The company filed 3 US DMFs and 1 KDMF. The sales was contributed majorly by perindopril, lercanidipine, amiodarone, etoricoxib, and adapallllene.


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