Glenmark Pharma plunges 9% after Q3 profit misses analyst estimates

Glenmark Pharma shares fell 9 percent intraday on Friday after its profit during December quarter missed analyst expectations on Thursday.

The stock was quoting at Rs 562.15, down Rs 46.10, or 7.58 percent on the BSE, at 12:33 hours IST.

The company reported net profit growth of 11 percent to Rs 116.3 crore for the third quarter ended December 2018, with business growing across geographies, but the same was far below a CNBC-TV18 poll estimates of Rs 225.6 crore due to negative other income and lower other operating income.

Revenues during the quarter grew by 16 percent to Rs 2,555 crore YoY, driven by good growth in key markets like the US, India and Europe.

US generic business gained 16.28 percent to Rs 855.7 crore in the December quarter YoY while sales for the formulation business in India rose 15.39 percent to Rs 667.5 crore YoY led by market share increase in cardiac and respiratory segments.

Sales of Africa, Asia and CIS region rose 5.6 percent to Rs 340 crore on YoY basis, while Europe formulation rose 43 .15 percent to Rs 321.7 crore on new launches.

Latin America business grew 12.9 percent to Rs 101.4 crore. The active pharmaceutical ingredient business grew 3.3 percent to Rs.239.2 crore on sales from Lercanidipine, Amiodarone, Olmesartan, Perindopril and Etoricoxib.

The drugmaker earlier announced its board has given a nod to spin off the innovation business into a new company in the US, to provide an enhanced focus and help accelerate the pipeline towards commercialization.

According to the plan, all innovative molecules in the pipeline, including preclinical assets and technology; the R&D centres in Switzerland, R&D centre at Paramus in the US and R&D centre at Navi Mumbai, India related to the innovation business, and the biologics manufacturing facility in Switzerland along with all employees associated with innovative R&D will be part of the new company, the wholly-owned subsidiary.