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Glenmark Pharma slips after weak Q4 results

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Capital Market
Last Updated : May 30 2018 | 10:31 AM IST

Glenmark Pharmaceuticals fell 2.49% to Rs 517.80 at 10:03 IST on BSE after consolidated net profit fell 17.48% to Rs 151.63 crore on 7.28% decline in net sales to Rs 2247.89 crore in Q4 March 2018 over Q4 March 2017.

The result was announced after market hours yesterday, 29 May 2018.

Meanwhile, the S&P BSE Sensex was down 87.70 points, or 0.25% to 34,861.54.

On the BSE, 80,000 shares were traded in the counter so far compared with average daily volumes of 42,000 shares in the past one quarter. The stock had hit a high of Rs 520.50 and a low of Rs 483.60 so far during the day. The stock hit a 52-week high of Rs 748 on 28 July 2017. The stock hit a 52-week low of Rs 483.60 on 30 May 2018.

Glenmark Pharmaceuticals' consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 0.98% to Rs 396.38 crore in Q4 March 2018 over Q4 March 2017.

India business grew by 5.50% to Rs 608.67 crore in Q4 March 2018 over Q4 March 2017.

US business de-grew by 30.08% to Rs 699.55 crore in Q4 March 2018 over Q4 March 2017.

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Europe business grew by 38.81% to Rs 318.95 crore in Q4 March 2018 over Q4 March 2017. The European subsidiary's strong performance during the quarter was driven by new product launches in key markets.

Africa, Asia and CIS Region (Rest of the World) business grew by 3.32% to Rs 298.53 crore in Q4 March 2018 over Q4 March 2017.

Latin America business de-grew by 4.75% to Rs 127.62 crore in Q4 March 2018 over Q4 March 2017.

Active Pharmaceutical Ingredients (API) business grew by 2.57% in Q4 March 2018 over Q4 March 2017.

Glenn Saldanha, Chairman & MD, Glenmark Pharmaceuticals, commented that while FY 2018 was a challenging year mainly on account of pricing pressure in the US, other key markets like Europe and India performed well on the back of new product launches. Even though the company expects pricing pressure to persist, FY 2019 has started on a positive note with approvals for some interesting products in the US. He further added that the company recently filed its first New Drug Application (NDA) for Ryaltris in the US, which is a milestone in Glenmark's journey and marks its first step towards the transition to a specialty and innovative drugs company. The company's strong R&D pipeline of novel assets will help propel growth in the long run.

Glenmark Pharmaceuticals is a research-driven, global, integrated pharmaceutical organization.

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First Published: May 30 2018 | 10:12 AM IST

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