Glenmark Pharmaceuticals, a Rs. 5,900 crore Mumbai based pharma major, has suffered setback during the fourth quarter ended March 2014 and its consolidated net profit declined sharply by 75 per cent to Rs. 43.06 crore from Rs. 172.09 crore as the company provided exceptional item of Rs. 218 crore on account of the provision made by Glenmark Generics Inc., USA towards the claims (including incidental expenses) of Abbott Laboratories in the patent litigation in respect of “TARKA”. However, its EBDITA moved up by 46.7 per cent in quarter to Rs. 381.62 crore.
The company's consolidated net sales jumped by 26 per cent to Rs. 1,782 crore from Rs. 1,335 crore in the corresponding period of last year. Its US business grew by 16.7 per cent to Rs. 5001 crore and its Indian business moved up by 7.9 per cent to Rs. 383 crore. Similarly, European formulations business saw a growth of 29.5 per cent to Rs. 193 crore. Its API segment registered a growth of 63.1 per cent to Rs. 153 crore.
The board of directors has recommended equity dividend of 200 per cent per equity share of the face value of Rs. 1 each.
For the full year ended March 2014, Glenmark's consolidated net sales increased by 19.8 per cent to Rs. 6,007 crore from Rs. 5,014 crore in the previous year. Its net profit declined to Rs. 542 crore from Rs. 620 crore due to provision of Rs. 218 crore for above mentioned exceptional item. Its EPS worked out to Rs. 20.01 as compared to Rs. 22.71 in the last period.
The company's US sales increased by 20 per cent to Rs. 2,027 crore and that in Europe moved up by 36 per cent to Rs. 506 crore during 2013-14. Its Indian sales improved by 15.3 per cent to Rs. 1,510 crore. API business has taken sharp jump of 35 per cent and touched to Rs. 535 crore.
Glenn Saldanha, chairman and managing director, said, “We have reported another year of strong growth fuelled by good performances across our key markets like the US, India, and Europe; including our API business. In fact, we have consistently grown our topline by over 20 per cent year on year for the past three years. We have also made steady progress on our innovation pipeline especially on the novel biologics front; one of the highlights being GBR900 – the first anti-TrkA monoclonal anti-body to enter clinical development.”
The company received approval for 8 ANDAs, comprised of seven final approval and one tentative approval. In the fourth quarter ended march 2014, Glenmark filed seven ANDAs with the US FDA and plans to file an additional ten applications in the first quarter of the 2014-15.