This Ashish Dhawan-backed pharma stock zoomed over 100% in 2 straight years

Glenmark Pharma rallied nearly 9% to Rs 1,763.90 after the US drug regulator issued Form 483 with zero observations for its formulation manufacturing facility in Aurangabad.

Glenmark Pharmaceuticals share rises: Shares of pharmaceutical major Glenmark Pharmaceuticals has rallied nearly 9 per cent to Rs 1,763.90 on the BSE in Monday’s intra-day trade after the company said the US drug regulator issued Form 483 with zero observations for its formulation manufacturing facility in Chhatrapati Sambhaji Nagar (Aurangabad).

In exchange filing on Saturday, September 21, Glenmark Pharma said that the United States Food & Drug Administration (USFDA) completed a Good Manufacturing Practice (GMP) inspection at the company’s formulation manufacturing facility based out of Chhatrapati Sambhaji Nagar (Aurangabad), India.

The inspection was conducted from September 9-20, 2024. The inspection, therefore, was closed with no observation, the company said.

At 09:36 AM, Glenmark Pharma was trading 8 per cent higher at Rs 1,749.90, as compared to 0.29 per cent rise in the BSE Sensex. The stock had hit a record high of Rs 1,773.95 on September 16.

Meanwhile, the stock of pharmaceutical company has given over 100 per cent returns in past two consecutive years. Thus far in the calendar year 2024 (CY24), Glenmark Pharmaceuticals has zoomed 107 per cent, as compared to 17 per cent rise in the BSE Sensex. In previous calendar year 2013, the stock had soared 101 per cent.

Investor Ashish Dhawan owned 7.2 per cent or 2.55 per cent stake in Glenmark Pharma at the end of June 2024 quarter, shareholding pattern data showed.

Glenmark Pharmaceuticals is primarily engaged in the business of development, manufacturing and marketing of pharmaceutical products. The company is a research-led, global pharmaceutical company, having a presence across Branded, Generics, and over-the-counter (OTC) segments; with a focus on therapeutic areas of respiratory, dermatology and oncology.

Glenmark Pharmaceuticals reported robust performance in April-June quarter (Q1FY25), driven primarily by its Indian operations. The company increased its market share in domestic business reflecting enhanced penetration across core therapeutic areas such as Cardiac, Dermatology, and Respiratory.

The strong market performance of Ryaltris across multiple European markets underscores the Company’s ability to capitalize on market opportunities and build a strong presence in the region. According to analysts at KRChoksey Shares & Securities believe the upcoming launches of Ryaltris in multiple new markets and the anticipated filing of Envafolimab in over 20 markets are expected to provide a future boost.

“We assign a PE multiple of 31.0x (previously: 23.5x) on FY26E earnings per share (EPS) of Rs 61.1 (previously: Rs 59.7) to arrive at a target price of Rs 1,894 (previously: Rs 1,403) as the company’s strategic initiatives, including new product launches, collaborations, and market expansion, position it well for continued growth,” the brokerage firm said in result update.

In the FY24 annual report, Glenmark Pharmaceuticals said strategic milestones anticipated in FY25 include achieving clinical Proof of Concept for ISB 1442 and/ or ISB 2001, marking major advancements in patient care and therapeutic efficacy. These milestones would not only validate the company’s research and development efforts but also reinforce leadership in driving innovation within the pharmaceutical industry. IGI’s strategic roadmap outlines clear objectives for the upcoming fiscal years, the company said.

Looking ahead, Glenmark aims to maintain leadership in Dermatology, significantly expand the presence in Respiratory segment, and strengthen the Oncology segment globally through in-house pipeline, strategic partnerships and innovative assets, the management said.