Acquisition is not our strategy: Glenmark chief

Recently Lupin and Cipla acquired generic drug companies in the US to expand their presence there

Glenmark Pharmaceuticals will focus on organic growth and developing a pipeline of innovative products, the company’s chairman and managing director Glenn Saldanha said here on Tuesday.

“In the short-term, acquisition is not our strategy. Valuations are high and it would be easier to grow organically. Our focus is to introduce new products to the market,” Saldanha added on the sidelines of the company’s annual general body meeting. Recently, Lupin and Cipla had acquired generic drug companies in the US to expand their presence in the market. Sun Pharmaceuticals acquired product research company InSite Vision to grow its ophthalmic business in the US.

Glenmark’s revenue grew 10 per cent in FY15, which was slower than previous years owing to currency weakness in emerging markets and fewer product approvals in the US. The company eyes 15-20 per cent growth in top line this year and expects US market sales and depreciating rupee to offset the loss from emerging markets.

“The US, India and Europe are the main growth drivers for us. Emerging markets contribute 20 per cent and its contribution is expected to remain low till we launch our novel drugs. We are expecting 18-20 per cent growth in the US this year and have secured approvals to six products in the first quarter. We have two big product launches in the US next year, which includes cholesterol-lowering drug Zetia,” said Saldanha.

He added the company would continue to expand its manufacturing units in India and would roll out its first plant in the US in two months. Glenmark will invest $100 million in its US facility over the next five years.