Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
GLENMARK
OUTPERFORMER (RS288, MCAP: RS78BN / US$1.7BN)
• Glenmark saw lower-than-estimated growth in the US in Q2FY11 primarily due to withdrawal of Nitroglycerine and
weak pick-up of some of newly launched products. However, its outlook for the market remains positive.
• The company remains confident of 25% yoy revenue growth in FY12 in the US due to these factors: 1) it expects full
impact of recent product launches to be realized from Q4FY11; 2) guaranteed niche launches (e.g, Malarone in
Q3CY10); and 3) visibility on the pipeline, which largely consists of niche products in segments like dermatology,
hormones and Para IVs.
• Glenmark declined to divulge details on Tarka due to an ongoing litigation. It expects the judge’s verdict on the
double patenting issue over the next few weeks/ months, which should provide clarity.
• Glenmark received seven approvals in Q3FY11, including two tentative ones. It has maintained its earlier guidance for
launching 13-15 ANDAs in FY11.
• Non-US markets: Glenmark’s outlook remains positive, with growth primarily driven by its presence in the
respiratory, dermatology and oncology segments.
• SRM markets: The company expects largely flat or marginally lower Q4FY11 sales due to a large prior-year base.
Overall, the company is positive about clocking 20-25% annual growth in the segment going forward.
• LatAm operations: Glenmark expects 30-40% yoy revenue growth going forward on the back of an improvement in
the Brazilian operations and incremental contribution from newer markets like Venezuela, Peru and Ecuador, boosted
by the impact of a low base.
• Domestic operations saw a slew of product launches – 14 in 9MFY11. Glenmark has a field force of 2300 and expects
to expand it in FY12. It has guided for 25% yoy revenue growth, with ~20% contributed by existing products and the
rest by new launches. It continues to witness traction in key TAs like respiratory, dermatology, pain management,
gynecology, CVS and diabetology.
• The company has guided for a capex of Rs3bn in FY11-12.
• Gross debt and cash position were Rs17.8bn and Rs1.12bn respectively as of December 2010. Net debt increased by
Rs980m qoq to Rs16.7bn as of end-Q3FY11.
• The management indicated that the working capital cycle as of end-December 2010 was in line with levels in October
2010. Receivable days were 119 in October 2010, as against 155 in March 2010.
• R&D expenditure for 9MFY11 was Rs950m, or 4.5% of consolidated sales. R&D expenditure is likely to inch up as the
company plans to initiate Phase IIb trials for as many as four NCEs, including GBR 500.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
GLENMARK
OUTPERFORMER (RS288, MCAP: RS78BN / US$1.7BN)
• Glenmark saw lower-than-estimated growth in the US in Q2FY11 primarily due to withdrawal of Nitroglycerine and
weak pick-up of some of newly launched products. However, its outlook for the market remains positive.
• The company remains confident of 25% yoy revenue growth in FY12 in the US due to these factors: 1) it expects full
impact of recent product launches to be realized from Q4FY11; 2) guaranteed niche launches (e.g, Malarone in
Q3CY10); and 3) visibility on the pipeline, which largely consists of niche products in segments like dermatology,
hormones and Para IVs.
• Glenmark declined to divulge details on Tarka due to an ongoing litigation. It expects the judge’s verdict on the
double patenting issue over the next few weeks/ months, which should provide clarity.
• Glenmark received seven approvals in Q3FY11, including two tentative ones. It has maintained its earlier guidance for
launching 13-15 ANDAs in FY11.
• Non-US markets: Glenmark’s outlook remains positive, with growth primarily driven by its presence in the
respiratory, dermatology and oncology segments.
• SRM markets: The company expects largely flat or marginally lower Q4FY11 sales due to a large prior-year base.
Overall, the company is positive about clocking 20-25% annual growth in the segment going forward.
• LatAm operations: Glenmark expects 30-40% yoy revenue growth going forward on the back of an improvement in
the Brazilian operations and incremental contribution from newer markets like Venezuela, Peru and Ecuador, boosted
by the impact of a low base.
• Domestic operations saw a slew of product launches – 14 in 9MFY11. Glenmark has a field force of 2300 and expects
to expand it in FY12. It has guided for 25% yoy revenue growth, with ~20% contributed by existing products and the
rest by new launches. It continues to witness traction in key TAs like respiratory, dermatology, pain management,
gynecology, CVS and diabetology.
• The company has guided for a capex of Rs3bn in FY11-12.
• Gross debt and cash position were Rs17.8bn and Rs1.12bn respectively as of December 2010. Net debt increased by
Rs980m qoq to Rs16.7bn as of end-Q3FY11.
• The management indicated that the working capital cycle as of end-December 2010 was in line with levels in October
2010. Receivable days were 119 in October 2010, as against 155 in March 2010.
• R&D expenditure for 9MFY11 was Rs950m, or 4.5% of consolidated sales. R&D expenditure is likely to inch up as the
company plans to initiate Phase IIb trials for as many as four NCEs, including GBR 500.
No comments:
Post a Comment