Glenmark net profit drops 4% in Q2 to Rs 214 crore

Moneycontrol News

Glenmark Pharmaceuticals on Thursday posted 4 percent decline of net profit to Rs 214 crore in the second quarter of FY17 largely in line with analyst estimates - helped by improved India, Europe and API sales, despite a drop in US sales.

The company reported Rs 223 crore in the year-ago period. Revenues rose 1.46 percent to 2256.6 in Q3 against 2224.1 in the year ago period.

While the net profit beat analyst estimates, revenues were in line with expectations. A CNBC-TV18 poll of analysts estimated the net profit to be at Rs 180.4 crore and revenues at Rs 2264.3 crore.

“The overall performance was driven by our India, Europe & API business,” said Glenn Saldanha, Chairman & MD, Glenmark Pharmaceuticals.

“Despite several challenges in the market, India business recorded high single-digit growth. The Europe business performed very well during the quarter due to a strong performance by the Western European region,” Saldanha said.

Saldanha said the company is on track to file new drug application (NDA) for its asthma drug candidate GSP 301 in 2018.

US generic business dropped 5.72 percent to Rs 727.1 crore in the September quarter against revenue of Rs 7712 crore in the corresponding quarter previous year.

During the second quarter, the company received eight final approvals taking the tally to 13 final approvals for the first half of this financial year.

Some of the approvals in second quarter include Acyclovir Ointment and Nitroglycerin Sublingual Tablets; Amlodipine and Olmesartan Medoxomil Tablets, Desonide, Triamcinolone Acetonide Ointment, Propafenone Hydrochloride Extended-Release Capsules.

The company filed three ANDA applications with the US FDA, and plans to file an additional seven applications in the forthcoming quarter. The company has thus filed five ANDA applications in the first half of this financial year.

Glenmark’s marketing portfolio through September 30, 2017 consists of 126 generic products authorized for distribution in the US market. The company currently has 61 applications pending in various stages of the approval process with the US FDA, of which 28 are Paragraph IV.

Sales for the formulation business in India for the second quarter rose 5.30 percent to Rs 710.7 crore; on a sequential basis the net profit grew 15.3 percent indicating substantial recovery from GST rollout.

As per IMS MAT June 2017, Glenmark is ranked 14th compared to 16th in MAT June 2016 with a market share of 2.25 percent exhibiting value growth of 13.5 percent compared to industry growth of 8.2 percent..

Sales of Africa, Asia and CIS region declined 0.14 percent to Rs 252.1 crore, while Europe formulation rose 48.50 percent to Rs 200 crore on new launches. However, Latin America business remained subdued at Rs 105 crore on account of sharp decline in Venezuelan sales.

The active pharmaceutical ingredient business saw growth rate of 6.90 percent to Rs 237 crore on account of sales from Perindopril, Lercanidipine, Etoricoxib, Adapalene and Amiodarone.