India's Glenmark Life Sciences posts Q2 profit rise on API boost

Alivus Life Sciences

20/10/2023 09:23

BENGALURU, Oct 20 (Reuters) - India's Glenmark Life
Sciences  GLEM.NS  reported an 11.1% rise in second-quarter
profit on Friday, led by strong growth in its mainstay active
pharmaceutical ingredients (API) business in domestic as well as
U.S. and European markets. 
    The Mumbai-based drugmaker said its profit rose to 1.19
billion rupees ($14.3 million) for the quarter ended Sept. 30,
from 1.07 billion rupees a year earlier.
    The company, spun off from Glenmark Pharmaceuticals
 GLEN.NS  in 2019 to focus on the API business, said its revenue
from operations jumped nearly 17% to 5.95 billion rupees, with
regulated markets including the U.S., Europe, Latin America and 
India contributing 80%.
    However, a nearly 18% rise in expenses ate into the
company's core profit margin, which contracted to 29% from 30.2%
a year earlier.
    Revenue from the API business, the company's biggest segment
contributing 95% to revenue, grew 19.7% to 5.43 billion rupees.
    Last month, parent Glenmark Pharma said it would sell a 75%
stake in the Life Sciences unit to detergent maker Nirma and use
the proceeds to repay debt.
    The drugmaker, whose clients include Aurobindo Pharma
 ARBN.NS  and Torrent Pharmaceuticals  TORP.NS , also exports
APIs to markets including Japan and the Middle East.
    The company develops APIs for drugs that help treat
conditions such as diabetes and central nervous system diseases.
    Shares of Glenmark Life Sciences advanced 0.6% after its
results. They jumped 8.6% during the September-quarter, compared
with a 12% rise in the Nifty Pharma index  .NIPHARM .


($1 = 83.0229 Indian rupees)

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