Glenmark aims for substantial debt reduction in FY 17
The firm is expecting a strong growth in its US business in the second half of the year.
 "Glenmark aims for substantial debt reduction in FY 17")
Drug maker Glenmark has said improved sales in the US market will help substantially reduce its Rs 4,600 crore debt in FY 2016-17.
Glenmark,which reported 3.5 per cent growth in net profit in the September quarter is expecting strong growth in its US business in the second half of the year.
“The cash flow position will strengthen over the next few quarters from both the base business and from the launch of generic Ezetimibe (Zetia) in the US. The company will utilise all the cash flow to pay down the debt,” chairperson Glenn Saldanha said in an email response.
Glenmark’s Rs 4,600 crore debt comprises long-term loans of Rs 3,375 crore and the balance raised through foreign currency convertible bonds earlier this year.
In December, the drug maker will launch anti cholesterol drug Zetia in the US. Glenmark has 180 days exclusivity for sale of the generic version and its current market size is $2.4 billion. The US market contributes 35 per cent to the company’s revenue.
In the second quarter the company received approval for six products in the US and it filed two drug applications to the US Food and Drugs Administration. The company plans to file seven more new drug applications in the US in the third quarter.
Saldanha estimates the domestic business to grow between 14-15% and expects the company to outperform the industry.
Glenmark,which reported 3.5 per cent growth in net profit in the September quarter is expecting strong growth in its US business in the second half of the year.
“The cash flow position will strengthen over the next few quarters from both the base business and from the launch of generic Ezetimibe (Zetia) in the US. The company will utilise all the cash flow to pay down the debt,” chairperson Glenn Saldanha said in an email response.
Glenmark’s Rs 4,600 crore debt comprises long-term loans of Rs 3,375 crore and the balance raised through foreign currency convertible bonds earlier this year.
In December, the drug maker will launch anti cholesterol drug Zetia in the US. Glenmark has 180 days exclusivity for sale of the generic version and its current market size is $2.4 billion. The US market contributes 35 per cent to the company’s revenue.
In the second quarter the company received approval for six products in the US and it filed two drug applications to the US Food and Drugs Administration. The company plans to file seven more new drug applications in the US in the third quarter.
Saldanha estimates the domestic business to grow between 14-15% and expects the company to outperform the industry.