Glenmark Pharmaceuticals posts good result and also receives US FDA tentative approval

Glenmark Pharmaceuticals (GPL) recently declared its results. The company's consolidated revenue increased by 13.77 per cent to Rs 1875 crore in Q2FY16 as compared to previous quarter. Its total expenditure increased by 14.33 per cent to Rs 1473 crore in Q2FY16 on quarterly basis. GPL's total expenditure increased mainly due to a 6.55 per cent increment in raw materials prices, 4.39 per cent increment in other expenses during the quarter.

GPL's EBITDA increased by 11.77 per cent to Rs 402 crore in Q2FY16 as compared to the previous quarter. However, the company's EBITDA margin contracted by 38 basis points to 21.44 per cent in Q2FY16 on quarterly basis. Its net profit also rose by 12.43 per cent to Rs 200 crore in Q2FY16 as compared to previous quarter. But, GPL's net profit margin contracted by 13 basis points to 10.69 per cent in Q2FY16 on quarterly basis.

On yearly basis, the revenue of GPL increased by 11.54 per cent to Rs 1875 crore in Q2FY16 as compared to same period in previous financial year. The company's total expenditure rose by 9.46 per cent to Rs 1473 crore in Q2FY16 on yearly basis. Its EBITDA rose by 19.89 per cent to Rs 402 crore in Q2FY16 as compared to previous fiscal year. GPL's net profit also increased by 21.41 per cent to Rs 200 crore in Q2FY16 on yearly basis.

Considering the geographical segment front ,GPL's India Business grew by 27.27 per cent to Rs 609 crore, wherein US Business rose by 17.90 per cent to Rs 598 crore, Europe Business increased by 22.82 per cent to Rs 160 crore and Rest of the World (ROW) Business increased by 21.17 per cent to Rs. 211 crore during September 2015 quarter on yearly basis.

Today, GPL received a tentative approval from the USFDA for its Lacosamide Tablets, 50 mg, 100 mg, 150 mg and 200 mg, the generic version of Vimpat Tablets, 50 mg, 100 mg, 150 mg and 200 mg of Union chimique belge (UCB). The Vimpat market achieved annual sales of approximately USD 691.0 million, according to IMS Health sales data for the 12 month period ending September 2015.Glenmark’s current portfolio consists of 102 products authorized for distribution in the US marketplace and 64 ANDA’s pending approval with the US FDA.

GPL's shareholding pattern indicates that FII holdings expanded by 297 basis points to 36.83 per cent while DII holdings contracted by 86 basis points to 5.98 per cent in September 2015 quarter. The share price of the company increased by 4.64 per cent on bourses in early trades and is trading at Rs 983.25 on intraday basis.

GPL is a research-driven, global, integrated pharmaceutical company. The company has significant presence in branded generics markets across emerging economies including India. GPL along with its subsidiary has 14 manufacturing facilities in four countries and has six R&D centers. The Generics business of Glenmark services the requirements of the US and Western Europe markets. The API business sells its products in over 80 countries, including the US, various countries in the EU, South America and India.