India's Glenmark Pharma misses profit estimates on weak North America sales

Glenmark Pharmaceuticals

14/02/2025 14:09

Feb 14 (Reuters) - India's Glenmark Pharmaceuticals  GLEN.NS  reported third-quarter profit below estimates
on Friday due to bleak U.S. demand for its long-term illness drugs.
    The drugmaker reported a consolidated net profit of 3.48 billion rupees ($40.15 million) for the quarter ended
December 31, compared with analysts' estimate of 3.64 billion rupees, as per data compiled by LSEG.
    The company reported a loss of 3.51 billion rupees in the comparable quarter last year, hurt by sluggish sales
in India and charges related to a legal case settlement in the United States.
    Net sales rose 34% to 33.02 billion rupees in the quarter, aided by India sales. 
    For further results highlights, click (Full Story).
    
KEY CONTEXT 
The U.S. is a major revenue source for India's generic drugmakers, but intense competition in North America's drug
market has pressured their margins.
    Analysts had flagged that Glenmark's growth in North America has been hampered by price erosion and lack of
significant product launches.
    Revenue from its U.S. markets grew 1.4% during the quarter, compared with a 5.5% growth in the previous quarter.
    However, the company said it anticipates business growth from the financial year 2026 onward, driven by
potential launches in the respiratory and injectable segments.
    
PEER COMPARISON
                                 Valuation (next 12     Estimates (next 12             Analysts' sentiment
                                      months)                 months)         
                       RIC       PE    EV/EBIT  Price   Revenue     Profit      Mean     # of   Stock to   Div yield
                                         DA     /Sale  growth(%)  growth(%)   rating*   analys    price       (%)
                                                  s                                       ts    target**   
 Glenmark            GLEN.NS   23.23    13.48            11.27      48.52       Buy       10      0.81       0.18
 Pharmaceuticals                                                                                           
 Mankind Pharma      MNKI.NS   43.55    24.15   6.73     21.67      13.68       Buy       15      0.86         
 Torrent             TORP.NS   41.98    24.43   6.84     12.32      29.91       Hold      26      0.86       1.05
 Pharmaceuticals                                                                                           
 Sun                 SUN.NS    31.10    23.32   6.26     10.27      13.68       Buy       33      0.83       0.92
 Pharmaceutical                                                                                            
 Industries                                                                                                
     
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT
    
    OCTOBER TO DECEMBER STOCK PERFORMANCE
    
    
 -- All data from LSEG 
-- $1 = 86.6740 Indian rupees

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 (Reporting by Ananta Agarwal and Ashna Britto in Bengaluru; Editing by Vijay Kishore)
 ((Ananta.agarwal@thomsonreuters.com;))