India's Glenmark Life Sciences Q3 profit rises 1% on API strength

Alivus Life Sciences

27/01/2023 08:26

BENGALURU, Jan 27 (Reuters) - Indian active pharma
ingredients maker Glenmark Life Sciences  GLEM.NS  on Friday
reported a narrow 1% rise in quarterly profit, as growth in its
key generic active pharma ingredients (API) segment offset high
costs of raw materials. 
        The Mumbai-based drug maker's profit rose to 1.05
billion rupees ($12.86 million) in the three months ended Dec.
31, from 1.04 billion rupees a year ago.
  
        The generic API segment, which contributes to almost 90%
of the company's revenue, grew 1.8%, benefiting from a capacity
expansion at the company's Dahej facility, as well as growth in
its regulated markets business. 
  
    "India, Europe and Latin America were the main catalysts for
growth whereas U.S. witnessed healthy recovery," said chief
executive officer Yasir Rawjee.
    The expansion for generic API products at the facility was
completed with 240 KL capacity and was operational from this
quarter. 
    Growth in this segment managed to offset the 12% jump in
input cost and 31% decline in its contract development and
manufacturing organization (CDMO) business.
    "CDMO business was sluggish, and we expect it to pick up
strongly from the fourth quarter onwards," said Rawjee.
    Glenmark Life Sciences, which was spun off from Glenmark
Pharmaceuticals in 2019 to focus on the API business, posted
revenue from operations of 5.41 billion rupees, up 3.5% from the
previous year.
    Glenmark Pharma will report its third quarter results on
Feb.10.
    As of 1:26 a.m. IST, shares of the company are down 0.7%
after gaining 0.5% after the results. They fell 33.4% in 2022,
while the Nifty pharma index  .NIPHARM  dropped 11.43%.
($1 = 81.6180 Indian rupees)
 (Reporting by Anuran Sadhu and Rama Venkat in Bengaluru;
Editing by Nivedita Bhattacharjee)
 ((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))