Glenmark expects generics to drive growth over next 3-4 years

Focus in emerging markets will be to invest in product pipeline in dermatology, respiratory, oncology therapy

Pharma firm Glenmark Pharmaceuticals has said its pipeline of speciality and innovative products over the next three to four years is expected to act as a defence against generics price erosion and competition and boost profitable growth.

Over the last few years, the company has invested significantly to mark the step-wise transition from generics to an innovation-driven organisation, according to the company's annual report.

"Our pipeline of speciality products, to be rolled out over the next three to four years, is expected to act as a defence against generics price erosion and increase in competition, and boost profitable growth," Glenmark chairman and managing director Glenn Saldanha said.

"Over the next three years, generics will continue to fuel our growth. After that, we expect the unlocking of revenues from the speciality/innovation business."

The next few years will see consistent revenues and profitability without the need for inorganic growth through acquisitions, Saldanha said, adding that speciality and innovative products will comprise 30 per cent of its revenues by 2025.

"Growth will not come at the cost of profits. We anticipate steadily improving our profitability margin from 22 per cent - 25 per cent by 2025. Our R&D expenses will stay at roughly 11 - 12 per cent of revenues," he said.

The company said that its focus in emerging markets will be to invest in product pipeline in dermatology, respiratory and the oncology therapy and focus on discovering primarily first-in-class molecules globally.

"Despite the challenging economic situation in most emerging markets including the volatile currencies, we will continue to remain positive on the long-term growth prospects in key emerging markets," the company said.

The US market will continue to remain the most important market and it will continue to invest significantly, it said.

All the incremental R&D resources are being invested in the US market and this region will be a key driver for growth in the future.

The company will also continue with its approach of out-licensing its molecules, the annual report said. Going ahead, the organisation will continue to lay equal emphasis on small molecules as well as biologics and will continue to focus on discovering primarily first-in-class molecules globally for unmet medical needs.