Glenmark net profit up 19.8% on revenue growth

Drug maker suffers setback on R&D front following discontinuation of molecule trials

Glenmark posted a 19.8 per cent rise in net profit for the September quarter, on the back of revenue growth in key markets.

Net profit stood at Rs 197 crore against Rs 165 crore in same period last year. Revenue grew 13 per cent to Rs 1,909 crore, with India and US markets driving the growth of the last fiscal, 2014-15, Glenmark said in statement.

"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, chairperson, Glenmark Pharmaceuticals.

On the research and development front however the company has suffered a setback with drug maker Sanofi discontinuing the research on a molecule which was outlicenced to it by the Indian drug maker. The molcuele was being tested for treatment of multiple sclerosis.

In a statement Glenmark said Sanofi made the decision not to pursue further trials 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 monoclonal anti body after it's returned from Sanofi.