Mumbai-based pharmaceutical company Glenmark is targeting 12-15 per cent revenue growth in the domestic market for 2018-19, with a focus on select therapies, launch of differentiated products and expansion of over-the-counter (OTC) offerings.
Ranked 13th in India with annual sales of over Rs 28 billion, Glenmark has a market share of 2.4 per cent according to AIOCD-AWACS, the market research wing of the All India Organisation of Chemists and Druggists. Overall, industry-wide sales growth for 12 months ended March was 5.7 per cent. With growth of 8.6 per cent in the same period, Glenmark was the third-fastest among top 20 pharmaceutical companies, behind Lupin and Sanofi.
"We are looking at introducing an anti-hypertension drug and a couple of oncology drugs. We are also working on in-licensing opportunities in dermatology and oncology therapies, but those discussions are at an early stage," said Sujesh Vasudevan, Glenmark's head of India formulations.
Vasudevan expects the domestic pharma industry to return to the normal growth level of 10-11 per cent in 2018-19 after a dip in sales the previous year. Last year, sales growth fell to the single digit, owing to a price erosion and issues related with the implementation of the goods and services tax.
The OTC segment will be another lever of growth, Vasudevan said. "Our strategy is to leverage our strength in dermatology. We are looking at a switch of brands (from prescription to OTC) and build new brands in niche areas. Recently, we have extended the VWash brand with the launch of sanitary napkins and will be introducing two variants of anti-perspirant powders under the Candid brand," he said.
Earlier this month, the drug maker announced the launch of Akynzeo, the first combination drug in India to treat chemotherapy-induced nausea. The drug is being launched through a licensing agreement with Swiss firm Helsinn and will help Glenmark strengthen its presence in the therapy.
For Glenmark, the focus has been on core therapies (dermatology, oncology, cardiology, anti-diabetes) and building a few strong brands. This has helped in better resource allocation, productivity and margin improvement. The company's domestic business has an operating margin close to 30 per cent, but it did not divulge additional details.
The launch of drugs (without patents) such as teneligliptin (diabetes) and Apremilast (psoriasis) has given the company the first-mover advantage in high-growth segments.
The company's umbrella brands (hypertension drug Telma, skin care powder and cream Candid, and cough syrup Ascoril) contribute around 30 per cent to its domestic sales. In the first nine months of 2017-18, its domestic business reported a revenue of Rs 19.05 billion and accounted for 28 per cent of its total revenue.