Glenmark Pharma Q3 Results: Reports Net Loss Of Rs 331 Crore

Glenmark Pharmaceuticals Ltd. has reported a net loss in the third quarter of fiscal 2024, missing analysts' estimates.

The Mumbai-based bulk and generic drugmaker reported a net loss of Rs 331 crore in the October-December quarter, as compared with a net profit of Rs 291 crore over the same period last year. That compares with the Rs 248-crore consensus estimate of profit by analysts tracked by Bloomberg.

The company had reported a loss of Rs 62 crore in the previous quarter.

Glenmark Pharma Q3 FY24 Highlights (YoY)

• Revenue fell 19% to Rs 2,507 crore (Bloomberg estimate: Rs 3,464 crore).

• Operating losses of Rs 209 crore versus operating profit of Rs 474 crore (Bloomberg estimate: Rs 578 crore).

"The lower sales in the current quarter are mainly on account of a one‐time impact on the company’s India business," it said in the filing.

"During Q3 FY24, the company implemented changes in its overall distribution model of its India business, through consolidation of stock points and rationalisation of channel inventories. This led to a temporary dip in sales for the India business during the quarter."

The company expects this to improve its operating margin and overall working capital. "These changes in the India distribution system will also enable the company to accelerate the rollout of its anti‐counterfeit packaging across the country."

Other Highlights (YoY)

• India reported a decline of around 76% in sales at Rs 262 crore.

• U.S. formulation business fell 9% to Rs 763 crore.

• Revenue from Europe grew by 29%, while rest-of-the-world revenue rose 11%.

• Its subsidiary, Glenmark Lifesciences, recorded a 10% growth in revenue including captive sales.

“Glenmark is going through a transitionary phase on account of the divestment of Glenmark Life Sciences. In spite of the one‐time impact on our India business revenue due to the changes in our distribution model, our secondary sales growth remains strong, and we continue to outperform the market in our key therapy areas," Glenn Saldanha, chairperson and managing director at Glenmark Pharmaceuticals, said in the exchange filing.

"Meanwhile, our Europe and the RoW markets have maintained their robust growth trajectories, and we anticipate a resurgence of our U.S. business from Q4; driven by new injectable product launches."

The company has secured another out‐licensing deal for one of their assets in the innovation pipeline, OX40 antagonist monoclonal antibody portfolio, to Astria Therapeutics.

"The recent formation of Ichnos Glenmark Innovation, an alliance with our global fully integrated, clinical‐stage biotech subsidiary Ichnos Sciences Inc. will enable us to accelerate our efforts in new drug discovery for cancer treatment. Going forward, all of Glenmark’s innovation efforts will be channelised through IGI," Saldanha said.

Shares of Glenmark Pharma ended 4.35% lower ahead of the results announcement on Wednesday, as compared with a 0.45% rise in the benchmark NSE.