Mumbai: Drug maker Glenmark Pharmaceuticals Ltd on Thursday reported a 20% rise in its consolidated net profit for the quarter ended 30 September, aided by strong revenue growth in domestic market.
Net profit for the Mumbai-based firm stood at ₹ 198 crore as against ₹ 165 crore a year ago. Consolidated revenue rose 13.6% to ₹ 1,909 crore from ₹ 1,680 crore a year ago.
Sales for the formulation business in India grew 27% to ₹ 609 crore as against ₹ 478 crore a year ago. Revenue for Glenmark Pharmaceuticals Inc., USA grew 18% to ₹ 598 crore as against ₹ 508 crore a year ago.
“We have recorded good overall growth in the quarter powered by our India, US and Europe businesses. The devaluation of currencies across emerging markets, especially in countries like Brazil and Russia had an adverse effect on our operations. Going ahead, we expect our India, US and Europe businesses to continue to drive growth for our company;” said Glenn Saldanha, chairman and managing director, Glenmark Pharmaceuticals Ltd.
On Thursday, Glenmark shares fell as much as 6% (intra-day) to ₹ 928.05 following a CNBC-TV18 report that French drug maker Sanofi SA has decided not to pursue its deal with Glenmark for the development of Vatelizumab drug, a monoclonal antibody (MaB) for multiple sclerosis. This will negatively impact Glenmark as the drug was already in the second phase of trials, report said.
In June 2011, Glenmark had licensed the molecule to Sanofi in a deal worth $613 million. As part of the deal, Glenmark had received $55 million from Sanofi Till April 2014.
“Sanofi has made the decision not to pursue further Vatelizumab (GBR 500) as a potential Relapsing-Remitting MS therapy, following the results of a pre-planned interim analysis that revealed the primary efficacy endpoint was not met. This decision is not due to safety concerns. Glenmark will continue to pursue the relicensing of GBR 500 after it’s returned from Sanofi,” a spokesperson from Glenmark said.
Glenmark shares closed at ₹ 943.75, down 4.47% on BSE on Thursday, while the benchmark index Sensex fell 0.75% to 26,838.14 points.
