Financial Daily from THE HINDU group of publications
Wednesday, Dec 10, 2003
Financial Daily from THE HINDU group of publications Wednesday, Dec 10, 2003 |
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Markets
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Stock Markets Acquisition buzz shot in the arm for Glenmark Deeptha Rajkumar
THE stock of Glenmark Pharmaceuticals Ltd has been the centre of market attention in the recent past, appreciating by more than 89 per cent on the bourses from its low of Rs 73.85 (BSE) on October 24. Rumours of possible acquisitions coupled with sustained institutional interest has been the main driver at the counter. There is also talk in the market that one of Glenmark's two lead compounds in the area of asthma and diabetes/obesity is going into phase I of human trials, and the company is looking for a contract research organisation (CRO) to process it further. The grapevine was also abuzz with the company's plans for future DMF (drug master file) and ANDA filings. As per reports, Glenmark is also planning to sell its first generic formulations in the US by May 2004. Company sources refused to comment on the progress of its lead compounds. They, however, did mention that the company is looking to file one ANDA (abbreviated new drug applications) before March 2004 and that it is looking to file 3-4 DMFs by March 2004. The company, which has a strong presence in the branded domestic formulation market, is also looking at aggressively developing its regulated market business. "By the year 2007, exports will probably contribute to 40 per cent of our turnover. In the domestic market, on a conservative basis, we are looking at 10-15 per cent growth annually," the sources said. Yet, analysts opine that the fact Glenmark is taking longer than expected to license its compounds and finalise the CRO to take its compounds forward is an area of concern. "Also, the company's sales in the domestic market were flat in value terms this quarter. This was following price erosion in several new formulations launched by the company and decline in sales of its API (active pharmaceutical ingredient) and co-marketing division. While its US-based subsidiary, Glenmark Pharmaceutical Inc's tie-up with Philadelphia-based Lannett Company Ltd will enable it to enter the lucrative US market, it will take at least a couple of years before revenues start flowing to Glenmark," an analyst said. The stock ended the day at Rs 138.70, up 2.26 per cent, with around 3.9 lakh shares traded on the BSE. On the NSE, it ended the day at Rs 139.25, up 2.8 per cent, with around 10.82 lakh shares changing hands.
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