Glenmark – Will Innovation Pay?

Glenmark Pharma Q1 results -

Region wise sales -

India - 1064 cr, up 3 pc (under performed the IPM)
North America - 808 cr, up 22 pc
Europe - 573 cr, up 73 pc
RoW ( basically EMs ) - 551 cr, up 30 pc
APIs - 376 cr, up 16 pc
Others - 27 cr

Total sales - 3401 cr, up 22 pc

Percentage of Branded sales out of the total @ 47 pc
( basically India + RoW formulations )

EBITDA @ 631 vs 431 cr

Margins @ 18.6 vs 15.5 pc YoY

Glenmark’s 9 brands are in top 300 brands in IPM. Glenmark is no - 2 in Respiratory and Derma segments in India

Glenmark Consumer care grew 20 pc. Has popular brands like - Candid Dusting powder and Scalp Anti Dandruff shampoo in its portfolio

Mkt Share of Glenmark’s Speciality Drug - Ryaltris (nasal spray for allergies) in various countries -

Aus-18 pc
SA-15 pc
Poland-8 pc
Italy-10 pc

Glenmark’s subsidiary - Ichnos Sciences has various NCE under discovery and development phase - most of them are Oncology molecules. GPL aims to get into some out-licensing deals yr

Have reduced R&D spends to 8.5 pc of sales. Will bring it down to 7.5 odd pc by next yr

This will boost profitability going forward. GPL’s heavy spends (beyond Industry norm of 5-6 pc of sales) are because of its NCE programs

Company to remain focussed on 03 Pharma therapies - Derma, Respiratory, Oncology. Going to launch a number of new products in these areas

Continue to file 10-15 products in US/ yr. But the complexity of the products has gone up significantly. Not filing plain vanilla products anymore

Disc: hold tracking positions in both GPL and GLS. Biased. Not SEBI registered