Mumbai: A substantial increase in its US and Latin American business during the first quarter of the current fiscal helped Glenmark Pharmaceuticals Ltd, one of the fastest growing mid-sized drug firms in India, to post a 206% growth in net profit - Rs57.15 crore in the quarter ended 30 June.
An increase in foreign business made total sales rise 88% to Rs359.42 crore. The company’s results exceeded analyst forecasts, but did not make any positive impact on its stock, which fell 0.63% to Rs680.25 on the Bombay Stock Exchange on Monday, even though the Sensex rose 0.17%
“We are happy with the positive growth shown by our US, Latin American and India businesses on the generics and branded generics front, and we expect them to contribute significantly to overall revenues,” said Glenmark managing director and CEO Glenn Saldanha. “In the period under review, our US business posted revenues of Rs82.62 crore, registering a growth of 258% over the first quarter of the previous year. Our Latin American operations, comprising the business of the two subsidiaries— Glenmark Farmacêutica Ltda and Servycal S.A.—and 10 other Latin American countries, posted revenues of Rs55.3 crore for this quarter, reflecting an increase of 173%.”
The company’s exports to semi-regulated markets such as Africa brought in sales of Rs44.63. crore, which grew by 22% over the previous year. Glenmark’s sales in India, too, recorded a 49% increase and was worth Rs128.06 crore more than what it was in the first quarter of the previous year.
On the research and development front, Glenmark’s lead molecules, GRC 8200 for diabetics and GRC 6211 for pain management, are progressing in clinical trials, said a company statement. It has now initiated a Phase IIA proof of concept study of a drug for dental pain in Europe and hopes to complete this by December.
Glenmark is also planning to initiate two large Phase II studies of drugs for neuropathic pain and osteoarthritis.
The firm has three more molecules in advanced pre-clinical stages. It plans to file applications for the research drug GRC 4039 for rheumatoid arthritis and inflammation, for a Phase I clinical testing in the second quarter, said a company release.
The company is currently active in the discovery of new drug molecules in the areas of inflammation, asthma, diabetes and obesity. Glenmark sells its generic formulations and bulk pharmaceutical materials in more than 80 countries across the world.
Its formulations business spans several product segments such as dermatology and internal medicine.