VALUE PICK JULY ’17: Glenmark Pharmaceuticals Limited, Update
Update:
Q4 Results FY’20
Glenmark Pharmaceuticals Limited (GPL) – a research-led global integrated pharmaceutical company, on Friday announced its financial results for the 4th quarter and year ended March 31, 2020.
The company’s consolidated revenue for the quarter rose 7.96% to INR 2,767.48 Cr as against INR 2,563.47 Cr a year ago.
The Company posted a 36.28% rise in its consolidated net profit to INR 220.3 Cr for the 4th quarter ended March 31, 2020. The drug firm had reported a net profit of INR 161.66 Cr for the corresponding period of 2018-19.
The company’s consolidated revenue for 2019-20 rose to INR 10,640.96 Cr as against INR 9,865.46 Cr recording over the previous corresponding period (increased by 7.87% Y-O-Y basis)
For the financial year 2019-20, the company reported a consolidated net profit of INR 775.97 Cr as against INR 924.99 Cr in 2018-19.
Chairman & MD Speaks –
Our growth momentum sustained in the 4th Quarter despite (1) the COVID-19 pandemic and (2) challenging generic business environment across markets globally.
He further added, “Our Company’s sustained performance has been due to the continuous efforts of all our employees around the world. Our manufacturing facilities have operated continuously and facilitated the uninterrupted supply of medicines to operating markets.
Dividend –
The Company’s board recommended a dividend of INR 2.5/share of face values (FV) of INR 1 each (250%) for the financial year 2019-20.
22 June, 2020
Update:
Glenmark Pharma share price surged as many as 27% on the National Stock Exchange (NSE) after the pharma firm said it got Indian regulatory approval to make and sell oral antiviral drug “favipiravir” for treating mild-to-moderate COVID-19 infections in India.
The Mumbai-based pharma firm said the Drugs Controller General of India’s (DGCI) approval was part of India’s accelerated approval process and the drug was meant for restricted emergency use (meaning patients must sign over their agreement before being cured by the drug)
Shares of Glenmark Pharma which has surged over 153% in the past 3 months, ended at INR 519.75 on NSE, up INR 110.40 or 26.97%.
It traded with volumes of 89,266,592 shares, compared to its 10 day average of 3,964,334 shares, an increase of 2,151.74%.
The Company has launched the medicine under the brand name FabiFlu, priced at INR 103 per tablet. The company has started manufacturing favipiravir and will release it in the market in a couple of days, giving it a first-mover advantage in the market.
Favipiravir is also undertaking trials in other nations to test its effectiveness as a COVID-19 treatment.
Finblab is bullish on the stock and recommend average it at lower level.
11 July 2017
Company Background –
History:
The Company was incorporated on 18th, November 1977, as Glenmark Pharmaceuticals Private Limited under the Companies Act, 1956, and became a deemed Public Company on July 1, 1990, then again became a private Company on September 27, 1990, the word Private was deleted on July 1, 1991, and became a Public Limited Company on January 12, 1996, and named as Glenmark Pharmaceuticals Limited.
Business:
Glenmark Pharmaceuticals Limited is a research-driven, global, integrated pharmaceutical company. The company is a leading player in the discovery of new molecules both NCEs (new chemical entity) and NBEs (new biological entity) with five molecules in various stages of clinical development. The company has a significant presence in branded generics markets across emerging economies including India.
The company engaged in the discovery of new molecules both new chemical entities (NCEs) and new biological entities (NBEs).
The company operates in five geographical areas: India, United States, Latin America, Europe and Rest of the World.
The company operates in three segments: Specialty, Generics, and Out-licensing.
- Specialty segment includes manufacture and distribution of branded products of Glenmark. Specialty business is focused on the range of therapeutic segments, such as dermatology, internal medicine, respiratory, pediatrics, diabetes, gynecology, oncology.
- Generics segment consists of finished pharmaceutical products ready for consumption by the patient, marketed under as generic finished dosages with therapeutic equivalence to branded formulations (generics).
- Out-licensing segment includes the discovery of new chemical entities for subsequent commercialization and out-licensing, as well as contract research services.
Listed On
The company’s shares are listed for trading on National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) in India.
Latest News from the Management –
Glenmark says specialty & innovative products to contribute 30% revenues by 2025. Click here to see the full report.
Stock Information –
Share Holding Pattern –
Glenmark Pharmaceuticals Limited – Financials –
Conclusion –
Considering the techno-funda analysis and sector outlook; Glenmark Pharmaceuticals Limited looks good at Rs 669. FinBlab recommends investing in a stock keeping a long-term view in mind.
Here is a snapshot of the previous value pick. Click here to see full analysis
Next Value Pick on 5 August 2017
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