The Hindu Business Line : Glenmark consolidated Q3 net profit jumps 48%

A milestone payment of Rs 180 crore from Eli Lilly and good performance in the US market helped Glenmark Pharmaceuticals post a 48 per cent growth in its consolidated net profit for the three months ended December 31, 2007.

Consolidated profits for the third quarter under review increased to Rs 280 crore from Rs 188 crore in the corresponding period of the previous year, a note from the company said. International operations contribute to about 70 per cent of the company’s total revenues.

Management estimates put profit from the company’s generic medicines business at Rs 89 crore and from speciality business (including revenues when Glenmark out-licensed prospective drug molecules to multi-national companies for further development to commercialisation) at Rs 190 crore for the quarter, the company said.

Glenmark’s consolidated revenues of Rs 685 crore in Q3 of fiscal 2008, is up 54 per cent against Rs 446 crore registered in the third quarter of the previous year.

Revenues from the generics business that Glenmark intends spinning off into a 100 per cent subsidiary and subsequently listing in the first quarter of fiscal 2009 were Rs 267.84 crore (Rs 130.89 crore), registering a growth of 104.62 per cent, the note said.

The speciality business (including out-licensing revenues) that will continue to be a part of GPL, had revenues of Rs 417 crore (Rs 315 crore), recording a growth of 32.36 per cent.

Mr Glenn Saldanha, Managing Director and Chief Executive Officer of Glenmark said that the company posted good results with the Eli Lilly milestone coming this quarter, besides a good performance of the US business.

US arm revenues up

Glenmark Pharmaceuticals Inc, the company’s wholly-owned US subsidiary posted revenues of Rs 204 crore for the third quarter (Rs 83.52 crore), reflecting a 144 per cent growth.

Glenmark’s formulation business in India increased to Rs 121 crore in the third quarter of fiscal 2008 (Rs 112 crore), recording a growth of 8 per cent, the company said.

Glenmark shares were down 13 per cent on the BSE at Rs 472.35, on Monday.