Glenmark Pharmaceuticals net profit declined sharply by 35 per cent to Rs.55.85 crore during the second quarter ended September 2011, mainly due to one time exceptional expenses of Rs.131.68 crore, from Rs.86.18 crore in the corresponding period of last year. However, its EBDITA moved up by 38.7 per cent to Rs.217.52 crore from Rs.156.78 crore. The company's consolidated net sales also taken jump of 45.8 per cent to Rs.1,056 crore from Rs.724 crore in the similar quarter of last year.
The one-time payment of Rs.131.68 crore was in exercise of Glenmark's purchase option election with respect to its royalty agreement with Paul Capital for its dermatology portfolio in the US. With the exercise of this option, Glenmark has no further obligation to pay royalties to Paul Capital.
Revenues from the generic business was at Rs.399.02 crore as against Rs.327.42 crore, a growth of 21.9 per cent. Glenmark Generics Inc., registered revenue from sale of finished dosage formulations of Rs.300 crore for the second quarter against revenue of Rs.224 crore, an increase of 34.1 per cent. Revenues for Western Europe generics business moved up by 37.9 per cent to Rs.18.54 crore from Rs.13.44 crore.
The speciality formulation business revenue increased by 67.3 per cent to Rs.631.86 crore from Rs.377.71 crore. Its sales of formulation in India improved by 19.7 per cent to Rs.253.90 crore from Rs.212.19 crore. Its revenue from Africa, Asia and CIS region went up sharply by 82.4 per cent to Rs.147.93 crore from Rs.81.10 crore. Its revenue in Latin American and Caribbean operations improved by 49.8 per cent to Rs.73.82 crore from Rs.49.28 crore. Its sales in Europe increased by 7.4 per cent to Rs.37.76 crore from Rs.35.15 crore.
Glenn Saldnha, chairman & managing director, said, “Despite a challenging global environment, all our business registered strong revenue growth for the second quarter. Sales growth for the quarter has been around 30 per cent due to good performance by the US, ROW, Latin America and the India business. Our drug discovery pipeline continues to progress further. In this quarter, we began phase II studies for Revamilast in Asthma and rheumatoid arthritis and have received regulatory approval in all five countries for conducting these studies.”
or the fist half ended September 2011, Glenmark's consolidated net sales increased by 36.6 per cent to Rs.1,924 crore from Rs.1,409 crore in the similar period of last year. Its net profit moved up marginally by 3.6 per cent to Rs.265.96 crore from Rs.256.72 crore. Its EBDITA increased by 32 per cent to Rs.526.71 crore from Rs.399.05 crore.