India's Glenmark Life Sciences posts 25% rise in Q1 profit on API strength

Alivus Life Sciences

21/07/2023 09:47

BENGALURU, July 21 (Reuters) - India's Glenmark Life
Sciences  GLEM.NS  reported a near-25% rise in its first-quarter
profit on Friday, led by robust growth of its mainstay active
pharmaceutical ingredients (API) business in domestic as well as
U.S. and European markets.
    The Mumbai-based drug maker said profit stood at 1.35
billion rupees ($16.5 million) for the quarter ended June 30,
compared with 1.09 billion rupees a year earlier.
    The company, spun off from Glenmark Pharmaceuticals
 GLEN.NS  in 2019 to focus on the API business, said total
revenue from operations climbed 18% to 5.87 billion rupees
during the quarter, with regulated markets including the U.S.,
Europe and India contributing 78%.
    Margins on earnings before interest, taxes, depreciation and
amortization (EBITDA) rose to 33.7% from 31.9% a year earlier. 
    Revenue from the API business, the company's biggest segment
contributing 92% to revenue, grew 13.3% to 5.04 billion rupees. 
    The drugmaker, whose clients include Aurobindo Pharma
 ARBN.NS  and Torrent Pharmaceuticals  TORP.NS , also exports
APIs to markets including Japan, Latin America and the Middle
East.
    APIs are key biologically active elements in a drug that are
responsible for delivering desired health effects. The company
develops APIs for drugs that help treat conditions such as
diabetes as well as cardiovascular and central nervous system
diseases.
    Shares of Glenmark Life Sciences rose as much as 2.7% after
its results before paring gains to trade at 632 rupees per
share. They rose nearly 45% during the first-quarter,
outperforming the Nifty Pharma index  .NIPHARM , which rose
nearly 15%. 
    
    



($1 = 81.9742 Indian rupees)

 (Reporting by Kashish Tandon in Bengaluru; Editing by Sonia
Cheema)
 ((Kashish.Tandon@thomsonreuters.com;))