India's Glenmark Life Sciences posts Q3 profit rise; strong orderbook ahead, says CEO

Alivus Life Sciences

23/01/2024 12:47

HYDERABAD, Jan 23 (Reuters) - Indian drugmaker Glenmark
Life Sciences  GLEM.NS  posted a 13% rise in third-quarter
profit on Tuesday, helped by a robust performance by its core
active pharmaceutical ingredient (API) business.
    The Mumbai-based company, which detergent maker Nirma is in
the process of taking over, said its profit rose to 1.19 billion
rupees ($14.32 million) in the quarter ended Dec. 31.
    Revenue from its API business rose 6.4% to 5.11 billion
rupees, making it the biggest contributor to the total revenue.
APIs are crucial chemical compounds, used in drugs to help
produce the desired health effects.
    The company has over 130 APIs in its portfolio across key
therapy areas such as cardiovascular, oncology and
anti-infectives and operates in the U.S., Europe, Latin America
and India.
    Total revenue from operations rose 5.9% to 5.73 billion
rupees. 
    "This (growth during the quarter) was fuelled by the robust
performance of the US, LATAM, RoW and India (ex-GPL) markets,"
CEO Yasir Rawjee said, using GPL to refer to parent Glenmark
Pharma  GLEN.NS .
    Last year, Glenmark Pharma agreed to sell a 75% stake in the
life sciences unit, spun off in 2019 to focus on the API
business, to Nirma to pay off some of its debt of about 46
billion rupees. Post the deal, it would hold only a 7.84% stake
in the unit.
    Revenue from its contract development and manufacturing
(CDMO) unit rose 27.2%, said Glenmark Life Sciences, which
counts companies such as Aurobindo Pharma and Torrent
Pharmaceuticals  TORP.NS  among its customers.
    "Looking ahead, a strong orderbook for external business,
coupled with improved visibility of CDMO business gives me
confidence of delivering steady growth in FY24 and in the coming
years," Rawjee said. 
    Shares of the company closed 1% lower ahead of the results
on Tuesday. 
    
($1 = 83.1260 Indian rupees)

 (Reporting by Rishika Sadam; Editing by Rashmi Aich and Janane
Venkatraman)
 ((Rishika.S@thomsonreuters.com;))