India's Glenmark Pharma posts Q4 loss as stake-sale related costs weigh

Alivus Life Sciences

24/05/2024 16:35

BENGALURU, May 24 (Reuters) - Indian drugmaker Glenmark Pharmaceuticals  GLEN.NS  reported a fourth-quarter
loss on Friday, hurt by exceptional charges related to the divestment of its stake in Glenmark Lifesciences
 GLEM.NS  and remediation of its manufacturing sites.
    The company reported a consolidated net loss of 12.39 billion rupees ($149.2 million), compared with a loss of
5.49 billion rupees a year earlier.
    During the quarter, it incurred an exceptional charge of 4.47 billion rupees which comprised of costs related
to its stake sale and other costs including legal and remediation costs.
    Glenmark Pharma had a one-time charge of 8 billion rupees in the year-ago quarter which comprised settlements
of antitrust claims and consumer protection lawsuits in the United States.
    Revenue from operations rose marginally by 2% to 30.16 billion rupees.
    For further result highlights, click here.
    
    KEY CONTEXT
    Glenmark's profit has been under pressure for over a year due to persistently high expenses which comprised
legal costs as well as remediation expenses at some of its manufacturing facilities in India and the United States.
    The revenue in the U.S. has been hit due to lowered drug prices in the region. 
    It has been in a transitionary phase due to the divestment; however, it expects to turn this around in the
current fiscal year on the back of new product launches, the company said in a post-earnings call after its
third-quarter results.
    
    PEER COMPARISON
    
                                                   Estimates (next 12          Analysts' sentiment         
                                                        months)                                            
                      RIC         PE     EV/EBI  Revenue     Profit      Mean      # of     Stock to       Div
                                         TDA     growth (%)  growth (%)  rating*   analyst  price          yield
                                                                                   s        target**       (%)
 Glenmark              GLEN.NS    24.50   13.35    14.43       95.72     Hold           10      1.14           0.24
 Pharmaceuticals Ltd                                                                                       
 Torrent               TORP.NS    44.07   23.66    12.43       27.61     Buy            24      1.03           1.11
 Pharmaceuticals Ltd                                                                                       
 Mankind Pharma Ltd    MNKI.NS    36.93   26.70    12.79       17.51     Buy            12      0.96       NULL
 GlaxoSmithKline       GLAX.NS    50.30   36.92     9.78       65.68     Buy             4      1.04           1.29
 Pharmaceuticals Ltd                                                                                       
 
    
    JANUARY TO MARCH STOCK PERFORMANCE
    -- All data from LSEG
    -- $1 = 83.0350 Indian rupees
    

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 (Reporting by Kashish Tandon in Bengaluru; Editing by Varun H K and Vijay Kishore)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))