Mumbai: Glenmark Pharmaceuticals Ltd’s consolidated net profit more than doubled year-on-year in the quarter ended December, beating market estimates, as the launch of a generic drug used to treat cholesterol boosted sales in the US, its largest market.
Net profit rose to Rs477.03 crore in the December quarter from Rs196.18 crore a year ago. Net sales increased 41% to Rs2,462.95 crore from Rs1,746.39 crore.
According to a Bloomberg poll of 23 brokerages, the company’s consolidated net profit had been expected at Rs337 crore and net sales at Rs2,356.50 crore.
Glenmark, along with its partner Endo International, launched the generic version of Zetia, the anti-cholesterol drug, in the US on 12 December, with six-month marketing exclusivity.
According to IMS Health data, Zetia had sales of about $2.3 billion in the US in the 12 months ended October 2016.
“The overall growth for the organization has been bolstered due to the strong performance by our US formulation business. It was further aided by the good performance from our API (active pharmaceutical ingredients) business,” Glenn Saldanha, chairman and managing director of Glenmark, said in the earnings statement.
The company’s sales in the US doubled to Rs1,230.83 crore from Rs608.87 crore a year ago. It filed five abbreviated new drug applications (ANDA) with the US Food and Drug Administration during the December quarter and plans to file 10 ANDAs in the March quarter. Glenmark’s marketing portfolio in the US consists of 112 generic products and it has 63 applications pending in various stages.
Sales in India were up 5.9% at Rs516.87 crore, while European sales rose 11% to Rs195.71 crore. Sales of active pharmaceutical ingredients increased 32.5% to Rs192.05 crore.
The company’s consolidated earnings before interest, tax, depreciation and amortization (Ebitda), an indicator of its operating profitability, surged 106.4 % to Rs765.02 crore in the December quarter.
A near seven-fold jump in other income, which means income from avenues other than its main operations, to Rs14.57 crore also lifted the company’s profitability. Tax expenses surged 127.7% on year to Rs178.23 crore in the quarter from Rs78.26 crore.