Glenmark Pharma slumps after disappointing Q3 numbers

Glenmark Pharmaceuticals slumped 7.79% to Rs 533 at 10:11 IST on BSE after consolidated net profit tumbled 78% to Rs 104.74 crore on 11.8% fall in net sales to Rs 2171.51 crore in Q3 December 2017 over Q3 December 2016.

The results were announced after market hours yesterday, 8 February 2018.

Meanwhile, the S&P BSE Sensex was down 418.98 points, or 1.26% to 33,980.78.

High volumes were witnessed on the counter. On the BSE, 2.8 lakh shares were traded in the counter so far compared with average daily volumes of 83,743 shares in the past one quarter. The stock had hit a high of Rs 544.90 in intraday trade. The stock had hit a low of Rs 524.20 so far during the day, which is also a 52-week low for the stock. The stock had hit a 52-week high of Rs 967.65 on 9 February 2017.

The stock had underperformed the market over the past 30 days till 8 February 2018, falling 3.71% compared with 0.18% rise in the Sensex. The scrip had also underperformed the market in past one quarter, declining 3.21% as against Sensex's 3.6% rise. The scrip had also underperformed the market in past one year, tumbling 39.76% as against Sensex's 21.64% rise.

The large-cap company has equity capital of Rs 28.22 crore. Face value per share is Re 1.

The financial results are not comparable as the company had an exclusivity on Ezetimibe, generic version of Zetia in Q3 December 2016. The sales during the exclusivity period had a significant impact on the earnings before interest, tax, depreciation and amortization (EBITDA) and net profit for Q3 December 2016.

Glenn Saldanha, Chairman & MD, Glenmark Pharmaceuticals, said that the overall performance was driven by the company's India, Europe, rest of the world (ROW) and active pharmaceutical ingredient (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.

He further added that the company 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 calendar year 2018. On the novel biologics side, the company continues to make progress on biological assets with GBR 1342, a bi-specific antibody targeting multiple myeloma by initiating phase 1 trials.

Glenmark Pharmaceuticals is a research-driven, global, integrated pharmaceutical organization.

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