You are here: Home » Markets » News
Business Standard

Glenmark Pharma falls for second straight day; stock down 8% in 2 days

With the past two day's decline, the share price of Glenmark Pharma has corrected 25 per cent from its 52-week high of Rs 573 touched on June 22, 2020.

Topics
Glenmark Pharma | Buzzing stocks | Markets Sensex Nifty

SI Reporter  |  Mumbai 

Glenmark Pharmaceuticals
With a thin pipeline (44 pending approvals) and low filings (8 in FY20), analysts at Emkay Global Financial Services expect US growth to remain moderate in the next few years.

Shares of Glenmark Pharmaceuticals were trading lower for the second straight day, down 5 per cent at Rs 428 on the BSE on Wednesday amid reports that the company has been charged with manipulating the prices of generic drugs sold in the US.

According to a Reuters report, Glenmark Pharmaceuticals USA was charged on Tuesday with conspiring to fix prices for generic drugs, the US Justice Department said in a statement.

Glenmark allegedly conspired with pharmaceutical maker Apotex Corp and other generic drug companies to increase the prices of cholesterol medication pravastatin and other generic drugs, Reuters reported quoting the department.

The stock of the drugmaker has slipped 8 per cent in the past two trading days. With the past two day’s decline, the share price of has corrected 25 per cent from its 52-week high of Rs 573 touched last month.

On June 22, it had rallied 40 per cent in the intra-day trade after the firm received approval for Favipiravir’s (Fabiflu), a potential Covid-19 drug, by the Drug Controller General of India (DGCI). The approval of Favipiravir (emergency usage approval) is for mild to moderate patients.

Meanwhile, for the January-March quarter (Q4FY20), Glenmark Pharma’s US business continued to disappoint, owing to price erosion in the derma segment, a fall in sales of key products, and Ranitidine impurity issue.

With a thin pipeline (44 pending approvals) and low filings (8 in FY20), analysts at Emkay Global Financial Services expect US growth to remain moderate in the next few years. Net debt remains high at Rs 3,760 crore (vs. Rs 3,650 crore quarter on quarter) and up almost Rs 300 crore year-on-year (YoY). This is much higher than the management guidance of Rs 700-800 crore reduction in FY20. Debt reduction remains key to the stock’s re-rating, in our view, the brokerage firm said in a result update.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, July 01 2020. 10:03 IST
RECOMMENDED FOR YOU
.