Glenmark Falls Short Of Estimates Despite Robust U.S. Sales Growth
Glenmark posted a 53.5% rise in the sales in the U.S. in Q4FY17.
Glenmark Pharmaceuticals Ltd.’s consolidated net profit jumped 23.5 percent in the January-March quarter on account of sales of Zetia generic in the U.S., for which the company had a 180-day marketing exclusivity.
Net profit rose to Rs 183.76 crore from Rs 148.80 crore in the same quarter last year, the company said in a stock exchange filing on Thursday. The bottomline was way below the Bloomberg consensus estimate which stood at Rs 580 crore.
Sales in the U.S., the company’s biggest market, surged 53.5 percent year-on-year to Rs 1,000.45 crore during the reporting quarter, while sales in India were up 6.9 percent at Rs 576.93 crore.
Our quarter performance was mainly driven by our U.S. formulations business. In addition, our India business also managed to record growth despite various challenging factors in the market.Glenn Saldanha, Chairman & MD, Glenmark Pharmaceuticals
Overall, net sales increased 6.5 percent to 2,457.20 crore on a year-on-year basis. Operating income also grew 46.2 percent in the same period.
Glenmark’s Europe sales also jumped 15 percent compared to the same quarter last year. The March-ending quarter, the company said in its statement, turned profitable in the U.S. and Europe on the back of sales of its new generic Ezetimibe, the first version of Merck’s Zetia, which is used for treating high cholesterol. The company filed nine abbreviated new drug applications (ANDA) with the U.S. Food and Drug Administration (FDA), and plans to file three more in June quarter, the company said in its statement.
The sales of its formulation business in India grew 6.9 percent led by its dermatological and respiratory segments. The anti-diabetic segment, however, declined marginally in the same period.
The company also showed good performance in its active pharmaceutical Ingredients (API) business, for which the global sales stood at Rs 228.6 crore, an increase of 10.3 percent over the year.