The Hindu Business Line : Glenmark Q2 profit more than doubles

Excise benefits from the production facility at Baddi in Himachal Pradesh, along with growth in the domestic market, have contributed to the 131 per cent growth in net profit that Glenmark Pharmaceuticals Ltd has posted for the second quarter ended September 30.The Mumbai-based drug company has clocked a net profit of Rs 32.05 crore for the quarter as compared to Rs 13.84 crore for the corresponding period in the previous year.

It clocked sales of Rs 196.34 crore (Rs 125.59), posting a 56 per cent increase.The Glenmark's Managing Director and Chief Executive Officer, Mr Glenn Saldanha, told Business Line that 32 per cent growth in the domestic market, excise benefit from the Baddi plant and supplies to the rest of the world markets contributed to the company's bottom line for the quarter under review.

Revenues from the Indian formulations segment or the sale of finished dosage forms registered an increase of 32.2 per cent at Rs 110.83 crore.

The company posted a total consolidated revenue of Rs 255.70 crore a growth of 65.17, a company statement said.

Consolidated profits for the quarter were Rs 40.20 crore.

It is the first year that the company is consolidating its results, he said.

The quarter's growth was driven by robust sales to the United States and Latin American markets and they would be the key factors in the forthcoming quarter as well, he said.

Glenmark's business in the United States registered a 460.54 per cent growth for the quarter under review, at Rs 33.80 crore.

The company's Latin American operations posted a revenue of Rs 26.83 crore, up 162.5 per cent.

The company has four more molecules in the pipeline and plans to take three of them to the clinics in this fiscal year. Over the next six months, pre-clinical trials will start in Europe on three molecules, he said.

The molecules are in the obesity and pain-management segment, he said.

Deal with German co

Glenmark had recently signed a deal with Merck KGaA of Darmstadt, Germany for its prospective diabetes drug GRC 8200, giving it exclusive development, registration and commercialisation rights for the North American, European and Japanese territories. Glenmark will retain commercialisation rights for India and will share commercialisation rights with Merck KGaA for the rest of the world.

GRC 8200 and Oglemilast continue to progress well in their respective phase II trials, a note from the company said.

Glenmark shares closed at Rs 416, down 2.43 on the BSE.