Glenmark Pharma hits 52-week low on weak Q4; price erosion in US rises to 12%

Shares of Glenmark Pharma touched 52-week low of Rs 483.60, falling 9 percent in the opening trade on Wednesday on the back of poor fourth quarter numbers.

The company has reported 17.5 percent fall in its Q4 net profit at Rs 151.6 crore against Rs 183.7 crore in the same quarter last fiscal.

Revenue of the company was down 7 percent at Rs 2,279.8 crore against Rs 2,457.7 crore

The operating profit or EBITDA of the company was down 26 percent at Rs 326.8 crore and margin was at 14.3 percent.

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The board has recommended dividend at 200 percent i.e. Rs 2 per share for the financial year 2017-2018.

For FY19 the company keep the guidance of 10-15 percent topline growth, while ex-US, the other geographies should grow 10-15% in FY19.

The company has filed 7 ANDAs with USFDA this quarter and registered a price erosion at 12 percent against 10-12 percent in US.

US market will continue to remain a challenging environment for next 4 quarters, company said.

Glenn Saldanha, Chairman & MD, Glenmark Pharmaceuticals said, While FY 2018 was a challenging year mainly on account of pricing pressure in the US, our other key markets like Europe and India performed well on the back of new product launches.

Even though we expect pricing pressure to persist, we are glad that FY 2019 has started on a positive note for us with approval s for some interesting products in the US, he added.

The company at its meeting held on May 29 approved the draft share purchase agreement to acquire 100 percent stake in Zorg Laboratories for an aggregate consideration of Rs 5 lakh before adjustments and subject to legal and financial due diligence.

At 09:17 hrs Glenmark Pharma was quoting at Rs 508.45, down Rs 22.55, or 4.25 percent on the BSE.

Posted by Rakesh Patil
First Published on May 30, 2018 09:29 am

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