Glenmark Pharmaceuticals reported net loss of Rs 330.81 crore in Q3 FY24 as compared with net profit of Rs 290.76 crore in Q3 FY23.
Revenue from operations declined 19.67% to Rs 2,460.29 crore in Q3 FY24 as compared with Rs 3,062.75 crore in Q3 FY23. The lower sales in the current quarter are mainly on account of a one‐time impact on the companys India businessThe company reported pre-tax loss of Rs 521.38 crore in Q3 FY24 as compared with pre-tax profit of Rs 329.85 crore in Q3 FY23.
The pharmaceutical company reported negative EBITDA of Rs 208.6 crore in Q3 FY24 as compared with positive EBITDA of Rs 474 crore in Q3 FY23. The company also recorded negative EBITDA margin 8.3% in Q3 FY24 as against positive margin of 15.3% in Q3 FY23.
On a consolidated basis, Active Pharmaceutical Ingredients (API) sales fell 9.9% YoY to Rs 412.9 crore during the period under review.
In India, sales from the formulation business declined 75.6% to Rs 262.2 crore in Q3 FY24 as compared with Rs 1,074.5 crore recorded in corresponding quarter previous year.
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During Q3 FY 2023‐24, the company implemented changes in its overall distribution model of its India business, through consolidation of stock points and rationalization of channel inventories. This led to a temporary dip in sales for the India business during the quarter. However, going forward, this will help improve the companys operating margins and overall working capital. These changes in the India distribution system will also enable the company to accelerate the roll‐out of its anti‐counterfeit packaging across the country.
North America registered revenue from the sale of finished dosage formulations of Rs 739.2 crore for the quarter ended 31 December 2023 as against revenue of Rs 753.3 crore for the previous corresponding quarter, recording a de-growth of 1.9% YoY.
During Q3 FY24, revenues from the Asia, MEA, LATAM and RCIS (RoW) region were Rs 725 crore as against Rs 654.1 crore for the previous corresponding quarter, recording growth of 10.8%.
Glenmark Europes operations revenue for the third quarter of FY 2023‐24 was at Rs. 6,35.7 crore as against Rs 493.2 crore, recording growth of 28.9% YoY.
External sales for GLS in Q3 FY 2023‐24 were at Rs 412.9 crore as against Rs 375.6 crore in Q3 FY2022‐23, recording a growth of 9.9% YoY.
Glenn Saldanha, chairman and managing director, Glenmark Pharmaceuticals, said, Glenmark is going through a transitionary phase on account of the divestment of Glenmark Life Sciences. In spite of the one‐time impact on our India business revenue due to the changes in our distribution model, our secondary sales growth remains strong, and we continue to out‐perform the market in our key therapy areas. Meanwhile, our Europe and the RoW markets have maintained their robust growth trajectories, and we anticipate a resurgence of our U.S. business from Q4; driven by new injectable product launches.
We secured yet another out‐licensing deal for one of our assets in our innovation pipeline, OX40 antagonist monoclonal antibody portfolio, to Astria Therapeutics. This further strengthens our position as one of the leading research‐led pharmaceutical companies from India.
The recent formation of Ichnos Glenmark Innovation (IGI), an alliance with our global fully integrated, clinical‐stage biotech subsidiary Ichnos Sciences Inc. will enable us to accelerate our efforts in new drug discovery for cancer treatment. Going forward, all of Glenmarks innovation efforts will be channelized through IGI.
Glenmark Pharmaceuticals is a global innovation-driven pharmaceutical company with presence across specialty, generics and OTC businesses.
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