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P e r f o r m a n c e a b o v e e x p e c t a t i o n…
Glenmark Pharmaceuticals’ Q1FY12 results were above our expectations.
Net sales increased 27.4% YoY to | 868.2 crore, above our expectation of
| 814 crore while net profit grew 23% to | 210.1 crore, above our forecast
of | 178 crore. Sales growth was driven by healthy growth in US generic
business and speciality business in India and rest of world markets.
EBITDA margin improved 10 bps to 34.2%. Glenmark booked outlicensing income of | 111.2 crore related for GBR 500 against | 89.5 crore
(for GRC 15300) in Q1FY11. The remaining US$25 million will be booked
in Q2FY12. As the stock has moved up since our earlier recommendation,
we have changed our rating from STRONG BUY to BUY.
ƒ US business registers strong growth of 37% YoY
The US business witnessed strong growth of 37% to | 251.2 crore,
driven by recent product launches. The company has launched 19
products in the US market in the last fiscal. During the quarter,
Glenmark filed three ANDAs with USFDA and received final approval
for four products. It plans to file 18-20 ANDAs in FY12. It expects to
launch seven products in US markets in Q2FY12, which includes
oral contraceptives (OCs) and exclusivity product Malarone
(September 2011).
ƒ Receives US$15 million from Salix Pharmaceuticals
As per the signed agreement between Salix Pharmaceuticals and
Glenmark, Glenmark has received advance commitment fee of US$
15 million, which will be used for upgrading its manufacturing
facilities to meet increase in demand for Crofelemer. Beside this, it
will also receive US$6.6 million in five equal annual instalments.
V a l u a t i o n
Focus on niche therapies and limited competition opportunities augur
well for the company. With strong traction in the generic space and
rekindling of the R&D business, Glenmark is well poised to improve on the
leverage position and sustain the growth trajectory. We have valued the
stock at | 396 i.e. 17x FY13E EPS of | 23.3 with a BUY rating.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
P e r f o r m a n c e a b o v e e x p e c t a t i o n…
Glenmark Pharmaceuticals’ Q1FY12 results were above our expectations.
Net sales increased 27.4% YoY to | 868.2 crore, above our expectation of
| 814 crore while net profit grew 23% to | 210.1 crore, above our forecast
of | 178 crore. Sales growth was driven by healthy growth in US generic
business and speciality business in India and rest of world markets.
EBITDA margin improved 10 bps to 34.2%. Glenmark booked outlicensing income of | 111.2 crore related for GBR 500 against | 89.5 crore
(for GRC 15300) in Q1FY11. The remaining US$25 million will be booked
in Q2FY12. As the stock has moved up since our earlier recommendation,
we have changed our rating from STRONG BUY to BUY.
ƒ US business registers strong growth of 37% YoY
The US business witnessed strong growth of 37% to | 251.2 crore,
driven by recent product launches. The company has launched 19
products in the US market in the last fiscal. During the quarter,
Glenmark filed three ANDAs with USFDA and received final approval
for four products. It plans to file 18-20 ANDAs in FY12. It expects to
launch seven products in US markets in Q2FY12, which includes
oral contraceptives (OCs) and exclusivity product Malarone
(September 2011).
ƒ Receives US$15 million from Salix Pharmaceuticals
As per the signed agreement between Salix Pharmaceuticals and
Glenmark, Glenmark has received advance commitment fee of US$
15 million, which will be used for upgrading its manufacturing
facilities to meet increase in demand for Crofelemer. Beside this, it
will also receive US$6.6 million in five equal annual instalments.
V a l u a t i o n
Focus on niche therapies and limited competition opportunities augur
well for the company. With strong traction in the generic space and
rekindling of the R&D business, Glenmark is well poised to improve on the
leverage position and sustain the growth trajectory. We have valued the
stock at | 396 i.e. 17x FY13E EPS of | 23.3 with a BUY rating.
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