Glenmark Pharmaceuticals, a Rs.6,000 crore plus pharma major, has suffered heavy setback during the third quarter ended December 2014 and consolidated net profit declined sharply by 46.8 per cent to Rs.115 crore from Rs.216 crore in the similar period of last year. Devaluation of the currency and the subdued business environment in Russia has put pressure on bottom line. EBDITA also moved down by 27.2 per cent to Rs.268 crore from Rs.368 crore. Its EPS declined to Rs.4.23 from Rs.7.98 in the last period. The company's consolidated net sales improved marginally by 5.7 per cent to Rs.1,692 crore from Rs.1,601 crore.
Its Indian formulations business achieved growth of 13.6 per cent to Rs.433 crore as against Rs.381 crore. However, its US formulations sales declined by 2.7 per cent to Rs.507 crore from Rs.521 crore. Further, its sales in Africa, Asia and CIS region declined sharply by 31.3 per cent to Rs.207 crore from Rs.301 crore.
Its formulations sales in Europe increased by 27.3 per cent to Rs.173 crore from Rs.136 crore. It launched 6 new products in the European region. It launched 2 products in Czech and Germany and one product in Romania and Slovak The UK unit which is the largest subsidiary in the region recorded 23 per cent growth in the third quarter. Similarly, Its sales in Latin America moved up by 106 per cent to Rs.234 crore from Rs.114 crore. APIs sales were under pressure and remained stagnant at Rs.147 crore.
In the third quarter ended December 2015, Glenmark received a final approval for omeprazole delayed release capsules 10 mg and 40 mg. It filed four ANDAs with the US FDA and plans to file four additional applications in the forthcoming quarter. Its portfolio consists of 94 generic products authorized for distribution in the US market. Currently, it has 75 applications pending in various stages of the approval process with the US FDA, of which 33 are Paragraph IV applications. It has a pipeline of 3 NCE and 4 NBE molecules in clinical trials or ready to enter clinical trials soon, including the in-licensed molecule 'Crofelemer”.
Glenn Saldanha, chairman and managing director, said,”Our India, LATAM and Europe businesses performed well in the quarter. While we continue to outperform the Indian pharmaceutical market recording double digit growth, our LATAM business performed exceedingly well with our Mexico and Venezuela subsidiaries growing by over 200 per cent backed by good demand. The slowdown in product approvals and channel consolidation impacted our sales in the US, whereas the devaluation of currency and subdued business environment affected our Russia/CIS business. We have been making steady progress in our innovation pipeline and now have three fiRs.t-in-class monoclonal antibodies (mAb) in clinical development; making us among the few companies in the world to have such a robust pipeline of mAbs.”
For the nine months ended December 2014, Glenmark's consolidated net sales improved by 12.5 per cent to Rs.4,841 crore from Rs.4,302 crore. However, its net profit declined by 6.8 per cent to Rs.465 crore from Rs.499 crore. EPS worked out to Rs.17.13 as against Rs.18.42 in the last period.