Glenmark charts out growth on tie-ups, product line-up

Our Bureau Mumbai | Updated on January 16, 2018 Published on December 19, 2016

Deals signed or under discussion stand at about $12 b

With 15 licensing deals either signed or in advanced stage of discussions, the strategy to partner will continue to play a major role in Glenmark's blue print for growth, said Glenn Saldanha, Chairman and Managing Director of the company.

The company already has deals signed on products such as Abraxane, Nuvaring and Suboxone, he said, adding that the total size of these deals signed or under discussion stood at about $12 billion.

Unveiling the company's growth chart for the next 10 years, he said Glenmark would grow on the back of internal capabilities and external partnerships. With a robust pipeline of products in various stages of research, he said about 30 per cent of its revenues would come from speciality and innovative products in the next five to 10 years.

The company's focus is largely on the oncology, respiratory and dermatology segments and the next couple of years are likely to see product launches and partnerships, Saldanha said, without indicating which product is likely to get off the blocks first in terms of an outlicensing deal for further development.

Funding plans

A couple of months ago, Saldanha had told BusinessLine that the company would explore more “mature” deals given its present state of research, as opposed to merely eyeing the next big cheque.

Towards achieving these targets, the company expects to increase its investment in research from about 8 per cent of its revenues to about 11 per cent. The company will also be investing $100 million annually to beef up its manufacturing, said P Ganesh, Glenmark's President and Chief Financial Officer. The company will not be raising funds from outside, Saldanha clarified.

Earlier this month, Glenmark had through its US partner launched its version of cholesterol-lowering drug Zetia in the US. The company expects about $250 million from the exclusive sales of this drug till late April 2017 when its patent expires. The revenues will also go to retire a part of the company's debt that stands at ₹3,700 crore up to September 2016.

Global footprint

As Glenmark looks to increase its global footprint in terms of product sale and manufacturing, he said, acquisitions were not part of the strategy. In addition to the US and India, its key markets, Glenmark would look to increase its presence in markets like Spain, he said.

Giving details on the Venezuelan crisis, Ganesh said about $45 million was locked in cash unable to be repatriated to India. It is a challenge in the absence of a settlement, he said, adding that other emerging markets were bouncing back.

The company was hopeful, he said of the dialogue between the two governments to resolve the crisis.

Published on December 19, 2016
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