Recent approvals to help Glenmark Pharma scale up FY18 growth

At the current price, the stock is trading at 16 times its FY19 earnings estimate and is at a discount to peers

The Glenmark Pharmaceuticals stock has gained over five per cent since its lows this month on brokerage upgrades, which highlight the upside from product launches in the US and the potential of out-licensing deals.

Prior to the upgrades, the stock was under pressure, given the expectations of a drug price erosion of 10-15 per cent in FY18 and a falling contribution from the generic version of Zetia, a drug used to reduce cholesterol levels.

The six-month sales under exclusivity for this drug ended in the June quarter and generated $175-million revenue. 

Sales of Zetia were one of the reasons for overall revenue growing