Glenmark to raise $80m via FCCBs

Glenmark Pharmaceuticals plans to raise around $80 million (around Rs 360 crore) through the foreign currency convertible bonds (FCCB) route. The board of directors of the company will meet tomorrow to consider the issue of FCCBs.

A company source told Business Standard: "This is an enabling resolution valid for one year. We may not go for it immediately. The idea is to be prepared for any merger & acquisition opportunity that may arise in the near future. We are open to any such opportunity that may come our way. The funds may also be utilised in bringing in a correction in the cost of capital."

According to analysts, the company has sharpened its focus on the research and development (R&D) activities and is expected to step-up investment in the area of basic research. Currently, it employs over 100 scientists focusing on asthma, diabetes and obesity.

Glenmark Pharmaceuticals has also seen inflow of funds from its $80 million licensing deal for eight abbreviated new drug applications to US-based K V Pharmaceutical Co. It is currently in the process of getting royalty and upfront payment from K V Pharmaceutical.

The generic products licenced to K V Pharmaceutical have annual branded sales of over $2.5 billion in the current market.

The company's key area focus includes dermatology, gynaecology, respiratory, gastrointestinals and lifestyle diseases like diabetes and cardiology. The drug maker's domestic business contributes in excess of 80 per cent to its total revenue of Rs 381 crore.

The company has been exporting active pharmaceutical ingredients to unregulated markets and is now looking at the regulated markets in a big way.