Glenmark Pharma - Exiting management commentary -
Q3 FY 24 highlights -
Sales - 2507 vs 3100 cr
EBITDA - (-) 209 vs 474 cr
PAT - (-) 331 vs 291 cr
Consolidated revenues fell 19 pc due to one time impact on India business
India revenues fell 75 pc @ 262 cr !!! Adjusted for that, revenues would have grown 9 pc YoY
EU business grew 29 pc @ 635 cr. Key brands like Riyaltris and Asthmex continue to grow strongly
RoW business grew 10 pc @ 725 cr. Company continues to witness strong sales momentum in the Respiratory and Derma segments
North America business de-grew 9 pc @ 762 cr ( due lack of new launches. Have launched 07 new products ) Over last few Qtrs, company has launched 05 new Injectable products in the US Mkts. Company hopes that these products may start to gain descent traction wef Q4 FY 24. Also awaiting approvals for 02 generic nasal sprays in the respiratory segment ( both these are big launches )
API business grew 10 pc @ 412 cr
India business impacted due - extensive changes in company’s distribution model through consolidation of stock points
India consumer division with brands like - Candid, La Shield, Scalp - grew 20 pc
Riyaltris - already launched in 31 countries. Has been approved for 18 more markets and will be launched there in next 3-6 months. China launch is expected in Mid-2025
Glenmark Pharma is ranked 2nd in both Derma and Respiratory segments in Indian Mkt. Company ranks 5th in the Cardiac segment. Company has 9 brands in top 300 brands in India
Glenmark is the first company to launch the bio-similar Liraglutide in India in Jan 24
R&D spends for Q3 @ 308 cr which is > 10 pc of sales
Gross and Net Debt @ end Q3 stands at 4900 and 3500 cr respectively. Likely to be paid off once the company receives the proceeds from the stake sale in GLS
India business restructuring done to correct the inefficiencies in the product distribution, help reduce working capital. In Q4, company should be back to > 1000 cr/Qtr India business. Post restructuring, company’s working capital need should reduce by Rs 500 cr
India business should be able to sustain 10-12 pc growth CAGR from hereon
R&D costs should almost half going into 2025. All this additional savings ( about 250 - 300 cr / yr ) should flow through to the bottomline )
Company’s Monroe plant in US is ready for inspection post all the remediation work. Expect to commercialise 02 products in FY 25 from this facility. From FY 26 onwards, expect this number to scale up meaningfully. As the plant goes commercial, expect a lot of operating leverage for the company’s US business to flow in
Going fwd, company is going to lay greater focus on the Injectables and Respiratory business in the US. Derma business should continue its steady trajectory
Riyaltris is expected to clock sales of $ 80 million for GPL. Once it is launched in the remaining mkts, the peak Riyaltris sales should further ramp up meaningfully. Plus this is a high margin product
The Chinese drug ( Envafolimab - an immuno-onco product ) that company has in-licensed can potentially be a big molecule going forward. Company believes, it would be the next Riyaltris for them
India business should clock > 1100 cr / yr sales from FY 25 onwards
Company expects to be debt free by end of Mar 24. Guiding for > 18 pc kind of EBITDA margins for FY 25
Assuming a topline of 12k cr, EBITDA for next year may be around 2200 cr with little or no interest outgo !!!
Disc: hold a tracking position, biased, not SEBI registered
Subscribe To Our Free Newsletter |