Glenmark Pharmaceuticals, a Rs 2,000 crore plus pharmaceutical giant, has suffered heavy setback during the year ended March 2009 on account of slower growth in top line, higher interest burden as well as employees cost and the absence of outlicensing revenue due to overall global recession. The company's consolidated net profit declined by 68.4 per cent to Rs 193.47 crore from Rs 632.11 crore in the previous year. This resulted in lower earning per share of Rs 7.74 as against Rs 25.84 in the last year. The Board has recommended equity dividend of 40 per cent for the year 2008-09.
The company's consolidated net sales increased by 5.9 per cent to Rs 2093 crore from Rs 1977 crore. Its other operating income went up sharply to Rs 28.52 crore from Rs 5 crore and its other income moved up to Rs 145.49 crore from Rs 63.17 crore. Despite significant higher other income, Glenmark's earnings before interest, depreciation, taxation and adjustments declined by 25.7 per cent to Rs 628.99 crore from Rs 846.35 crore. Further the company has provided Rs 116.95 crore for exceptional items during 2008-09 as against nil in the previous year. The exceptional items resulted from one time additional sales allowances given to customers by Glenmark Generics Inc., USA.
Commenting on the results Glenn Saldanha, CEO & MD, said, "Due to the global financial crisis which impacted every market in the world, one-off extraordinary items and delay in product approvals by USFDA, the overall business got impacted severely in the financial year. Having said that, we began taking corrective measures in the fourth quarter itself and you will see the impact of these initiatives in this financial year."
"On the business front, the drug discovery program gained further momentum. With Melogliptin to enter phase-III trials, we have taken a step closer to becoming the first Indian company to launch a truly global innovative drug. Eight molecules are now in human trials, with most being either best-in-class or first-in-class, reaffirming our strength in the area of drug discovery. We did well on the sales front - we grew in all regions except Latin America. A significant number of new products were launched across markets which aided sales growth. We will continue with the same vigour regarding new product introductions even in this financial year." Saldanha added.
The base business (excluding outlicensing revenue) grew by 21 per cent. Revenue from the generics business was at Rs 985.74 crore, as against Rs 791.66 crore, registering growth of 25 per cent. The Speciality formulation business registered revenue of Rs 1107.27 crore as against Rs 945.13 crore registering growth of 17 per cent.
Sales for the formulation business in India increased to Rs 614.19 crore for the financial year as compared to Rs 513.22 crore in the previous year, recording a growth of 20 per cent. Glenmark Europe's operations registered revenue growth of 170 per cent at Rs 99.59 crore as compared to Rs 36.86 crore of the previous year.
Semi regulated markets registered growth of 15 per cent at Rs 235.50 crore as compared to Rs 204.57 crore. Glenmark's revenue from its Latin American and Caribbean operations was at Rs 157.99 crore as against Rs 190.48 crore a decline of 17 per cent. The Latin American region continued to be impacted by the overall global economic crisis and significant currency devaluation.
Glenmark Generics Inc., U.S.A. posted revenue of Rs 733.77 crore for FY'09 against revenue of Rs 564.03 crore, a growth of 30 per cent over the previous year. The European business registered a strong revenue growth of at Rs 14.69 crore as compared to Rs 0.92 crore of the previous year. The European business continues to grow through product sales and out-licensing. Glenmark's revenue from the Argentina operations were Rs 40.05 crore of 2008-09 against Rs 30.78 crore of the previous year reflecting an increase of 30 per cent. Revenue from sale of API was Rs 197.23 crore against Rs 195.93 crore.
The company filed 6 ANDAs in US during the last quarter of 2008-09 constituting a total of 16 ANDAs filed in the entire financial year. The company a portfolio of 45 generic products authorized for distribution in the US market. It has over 40 ANDAs in various stages of the approvals process with the US FDA.