Glenmark Pharma Q3 net drops 78% to Rs 1.04 bn; US business declines 40%

Glenmark Pharmaceuticals on Thursday said its net profit dropped 78 percent to Rs 1.04 billion for the quarter ended December on sharp decline of US sales, despite growth in domestic formulations as well as other geographies.

The company reported a net profit of Rs 4.77 billion for the previous corresponding quarter.

Glenmark's consolidated revenue also declined by 13.07 per cent at Rs 22.03 billion for the third quarter ended December 31, as against Rs 25.35 billion.

"The overall performance was driven by our India, Europe, ROW and API business. The US business continues to be very challenging. The India business rebounded and has shown good sales growth due to improvement in the overall demand environment," Glenmark Pharma chairman Glenn Saldanha said in a statement here.

The company's revenues from US market declined by 40.21 per cent at Rs 7.35 billion in Q3 as against Rs 12.30 billion in the corresponding quarter last year. The revenue from Latin American market also declined by 5.15 per cent at Rs 898 million from Rs 947 million in the previous year's third quarter.

However, sales for the formulation business in India witnessed 11.92 per cent jump in revenues at Rs 5.78 billion for the quarter ended December from Rs 5.16 billion in the corresponding period last year, the release said.

Glenmark Europe's operations revenue for the quarter ended December 31, was at Rs 2.24 billion as against Rs 1.95 billion, recording a growth of 14.84 per cent.

Revenue from sale of API to regulated and semi-regulated markets globally was Rs 2.31 billion for the quarter ended December 31 against Rs 1.92 billion for the previous corresponding quarter, registering an increase of 20.62 per cent.

"We reported positive results of Ryaltris (formerly GSP 301) phase 3 safety trial in perennial allergic rhinitis. Glenmark plans to submit the company's first New Drug Application (NDA) to the FDA for Ryaltris for the treatment of patients with Seasonal Allergic Rhinitis (SAR) in the first half of 2018," Saldanha said.

"On the novel biologics side, we continue to make progress on our biological assets with GBR 1342, a bi-specific antibody targeting multiple myeloma by initiating phase 1 trials," he added.