Glenmark Pharmaceuticals rose 1.43% to Rs 564.95 at 14:53 IST on BSE after the company said it plans to set up a new manufacturing facility in the US.
The announcement was made during market hours today, 17 July 2014.
Meanwhile, the S&P BSE Sensex was down 9.42 points or 0.04% at 25,540.30.
On BSE, so far 16,000 shares were traded in the counter as against average daily volume of 56,333 shares in the past one quarter.
The stock hit a high of Rs 565.95 and a low of Rs 557.05 so far during the day. The stock hit a 52-week high of Rs 640.35 on 2 May 2014. The stock hit a 52-week low of Rs 489.10 on 27 November 2013.
The stock had underperformed the market over the past one month till 16 July 2014, sliding 3.82% compared with the Sensex's 1.43% rise. The scrip had also underperformed the market in past one quarter, declining 4.48% as against Sensex's 14.69% rise.
The large-cap company has equity capital of Rs 27.12 crore. Face value per share is Re 1.
Glenmark Pharmaceuticals (Glenmark) said that the company plans to set up this manufacturing facility at Monroe Corporate Center, North Carolina, USA. The facility will be spread over 100,000 sq. feet (around 15 acre plot) and the company will first begin work on an oral solid unit and thereafter set up manufacturing units for injectables and topicals, Glenmark said in a statement.
Glenn Saldanha, Chairman & MD, Glenmark Pharmaceuticals said, "Our plan to set up a new state-of-the-art manufacturing facility in the US underlines the fast paced growth the company has witnessed in a short span of 8 years in the US market and our long term commitment to the country. The US is a key strategic market for Glenmark and it is important for us to have a manufacturing base here to serve our growing business in the country. Over the next 5 years, we will make significant investments in this proposed facility and set up three units which will produce oral solids, injectables and topicals. With the setting up of a new facility in the US we would further enhance our manufacturing footprint making it truly global in every sense of the term".
Glenmark expects to start manufacturing activity by the end of the current financial year FY 2014-15. This facility is dedicated only for the US market and is Glenmark's first manufacturing facility in North America adding to its list of 14 plants in 4 countries India, Brazil, Argentina and Czech Republic, the company said in a statement. Glenmark which operates in North America through its subsidiary Glenmark Generics Inc. has a fast growing generics business with a robust portfolio of over 90 products authorized for distribution in the U.S. in niche segments like dermatology, hormones, controlled substances, oncology, and modified release products. The company has nearly 70 ANDAs pending for approval with the USFDA and currently ranks among the top 25 generics companies in the US.
Glenmark Pharmaceuticals' consolidated net profit slumped 75% to Rs 43.07 crore on 25.9% growth in net sales to Rs 1681.74 crore in Q4 March 2014 over Q4 March 2013.
Glenmark Pharmaceuticals has a significant presence in branded generics markets across emerging economies including India. GPL along with its subsidiary has 14 manufacturing facilities in four countries and has six R&D centers. Its subsidiary, Glenmark Generics Limited services the requirements of the US and Western Europe generics markets. The API business sells its products in over 80 countries, including the US, various countries in the EU, South America and India.
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