Glenmark Pharmaceuticals aims to close at least one out-licensing deal from its innovation pipeline, top management with the drugmaker said, outlining their strategy for the current financial year.

They also projected for healthy growth in the India region (despite a 6-percent-odd decline last quarter) and progress in remediation efforts at manufacturing sites in the United States and India, both critical markets. In an interaction with analysts, Glenmark management said that the company’s consolidated revenue was projected to grow at 10-11 per cent and research spends pegged at about 8.5 per cent of sales in FY 2024.

For the fourth quarter ended March 31, 2023, Glenmark had reported a net loss ₹403 crore on account of an exceptional loss of ₹799 crore, on the settlement of litigation related to generic Zetia (a cholestrol-lowering drug) in the United States.  Consolidated revenue for this quarter stood at ₹3,373 crore (₹3,019 crore), an  increase of 11.7 per cent. EBITDA was ₹605 crore (₹463 crore) in the quarter under review, up 30.5 percent.

Glenmark’s consolidated revenue was ₹12,990 crore (₹12,304 crore) for the year ended March 31, 2023, an increase of 5.6 per cent. Net profit stood at ₹377 crore (₹993 crore), also on account of the Zetia settlement, it added. 

India operations

Glenn Saldanha, Glenmark Pharma Chairman and Managing Director, was optimistic on prospects for the India region. The domestic market would grow on the strength of its dermatology, respiratory and cardiovascular products, even as its diabetes products comes under pressure, he said.

The company’s India business recorded a 6.4 per cent dip, at ₹828 crore, in the fourth quarter under review. The decline was largely due to the divestment of few non-core brands, some impact of the government’s National List of Essential Medicine (MLEM)-linked  price revisions, besides the return of Covid-related products, the management explained.

Remediation efforts

On remediation efforts by the company at it’s Monroe (US) and Goa sites, following US regulatory action, he said, this had been completed at the first site. He expected regualtory inspection etc to follow, and projected for commerical sales to begin in the second half of the year. With some remediation work still on this quarter in Goa, he said, the second half of the year would see more progress.

Last week, Glenmark Pharma also incorporated a wholly-owned subsidiary, Glenmark Healthcare Ltd, for the marketing and trading of pharma products, it said. On Glenmark Life Sciences (where the parent holds 82.84 per cent), he said, they would look to bring it down to75 percent in line with regulatory guidelines.

Ryaltris’s headway

Glenmark’s specialty brand Ryaltris, was making much headway, he said, and the company had initiated “Proof-of-Concept” on four clinical oncology assets, that are part of the Glenmark/Ichnos pipeline, he added. Ichnos is Glenmark’s US-based research oriented subsidiary.

 At the end of the last quarter FY 23, marketing applications for Ryaltris had been submitted in more than 70 countries, the product had been commercialized in 27 markets, including the US, Europe (the UK and multiple markets across the EU), Australia, Russia, South Africa, and South Korea, it said.

Glenmark’s North America revenues, at ₹850 crore in  Q4 FY2022-23, recorded a 15.3 percent growth against its last year performance. Its Europe operations clocked revenues for the quarter under review at ₹607 crore, a 22 percent growth.

Glenmark Pharma’s stock price recovered from the morning decline, and was at ₹610, down 2.27 percent at 2.53 pm on Monday.

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