Glenmark’s consolidated revenue rises 9.05 per cent to Rs 28,150.4 million in Q2 FY 2019-20

Glenmark Pharmaceuticals, recently announced its financial results for the second quarter ended September 30 of the financial year 2019-20. In the second quarter ended September 30, 2019, Glenmark’s consolidated revenue was at Rs 28,150.40 million as against Rs 25,813.32 million, recording an increase of 9.05 per cent.

The consolidated net profit of the company was at Rs 2,555.42 million for the quarter ended September 30, 2019 as compared to Rs 4,140 million in the previous corresponding quarter. The net profit is not comparable to the previous corresponding quarter on account of an exceptional income of Rs 1,671.82 million recorded in the second quarter of the previous financial year.

Consolidated EBITDA excluding other income was at Rs 4,504.08 million in the quarter ended September 30, 2019 as against Rs 4,401.06 million in the previous corresponding quarter, an increase of 2.3 per cent.

“We have rebounded strongly in the second quarter with most of our businesses recording good growth. The India business has continued to witness strong growth while the US sales have grown quarter-over-quarter sequentially. The Latam business has also recovered well in the second quarter,” said Glenn Saldanha, Chairman and MD, Glenmark Pharmaceuticals. He added, “The overall global macro environment continues to remain challenging and we still hope to sustain the momentum that the business has garnered during the second quarter.”

India

Sales from the formulation business in India for the second quarter of FY 2019-20 was at Rs 8,963.56 million (USD 127.65 million) as against Rs 7,783.57 million (USD 111.52 million.) in the previous corresponding quarter, recording a growth of 15.16 per cent.

The India business continued to outperform the industry growth. As per IQVIA Q2 FY 2019-20, Glenmark’s India business recorded growth of 15.3 per cent compared to IPM growth of 12.6 per cent. As per IQVIA MAT September 2019, the India business recorded growth of 12.3 per cent compared to IPM growth of 10.3 per cent. Glenmark’s India formulation business is ranked 14th, with market share of 2.19 per cent. Glenmark has nine brands among the ‘Top 300 Brands in the IPM.’

In terms of market share, Glenmark’s India business further strengthened itself in core therapy areas such as cardiac and respiratory. As per IQVIA MAT September 2019, the cardiac segment market share increased from 4.40 per cent to 4.63 per cent; the respiratory segment market share rose from 4.69 per cent to five per cent; the anti-diabetic segment market share increased from 1.64 per cent to 1.66 per cent; and the derma segment market share changed from 9.11 per cent to 9 per cent.

Glenmark’s Consumer Care business consolidated its sales growth trajectory in Q2, despite some headwinds in the larger discretionary consumption categories. The consumer business grew at almost 20 per cent to around Rs 553 million in the second quarter.

USA

The company registered revenue from the sale of finished dosage formulations of Rs 8,478.26 million (USD 120.72 million) for the quarter ended Sep 30, 2019 as against revenue of Rs 8,102.47 million (USD 116.05 million) for the previous corresponding quarter, recording an increase of 4.64 per cent.

In the second quarter of fiscal year 2019-20, Glenmark was granted final approval and launched Ranolzine Extended-Release Tablets, Pimecrolimus Cream, 1% and Clobetasol Propionate Foam, 0.05% [Emulsion Formulation]. In addition, it launched the previously approved product HAILEY1.5/30 [Norethindrone Acetate and Ethinyl Estradiol Tablets USP, 1.5 mg/30 mcg]. The company also received approval for Fulvestrant Injection, 250 mg/5 mL (50 mg/mL) which was its first injectable approval. In the six months of FY 2019-20, the company has received nine ANDA approvals including eight final approvals and one tentative approval. The generic industry continues to be subdued with the overall generic topical dermatology market continuing to witness price erosion of six to seven per cent on a Q-on-Q basis. The company filed one ANDA application with the US FDA, and plans to file an additional three applications in the forthcoming quarter.

Africa, Asia and CIS Region (ROW)

For the second quarter of FY 2019-20, revenue from Africa, Asia and CIS region was Rs 3,487.98 million (USD 49.70 million) as against Rs 3,051.16 million (USD 43.77 million) for the previous corresponding quarter, recording an increase of 14.32 per cent.

As per IQVIA data for MAT September 2019, Glenmark Russia recorded growth of 8.7 per cent in value vis-à-vis overall retail market growth of 5.2 per cent; Glenmark’s overall rank is 47 in Russian pharmaceutical market. As per IQVIA, it grew by 3.1 per cent in value vis-à-vis overall market growth of 3.4 per cent in the dermatology segment.

Amongst the companies present in the expectorants market, Glenmark secures a strong position and ranks fourth as per IQVIA MAT September 2019. During the second quarter, it received approval from the Ministry of Healthcare, Russia to market Montlezir (Levocetirizine Dihydrochloride 5mg + Montelukast Sodium 10mg) film-coated tablets as a prescription product for the treatment of seasonal and perennial allergic rhinitis in patients above 15 years of age. Montlezir is expected to be available in the Russian market in Q3 FY 2019-20. Amongst other CIS markets, Glenmark Ukraine showed secondary sales growth of 46.5 per cent in value in the second quarter of FY 2019-20. In units, Glenmark Ukraine showed growth of 33.2 per cent compared to relevant market growth of 0.9 per cent.

The Asia region recorded moderate performance in the second quarter of FY 2019-20, with secondary sales growth of six per cent. Growth remained subdued across all major Asian markets for Glenmark. The Africa region also recorded moderate growth in the second quarter. The South Africa and the Kenya subsidiary continued to record good growth in the second quarter.

Europe

Glenmark Europe’s operations revenue for the second quarter of FY 2019-20 was at Rs 2,850.90 million (USD 40.60 million) as against Rs 2,607.76 million (USD 37.37 million) recording an increase of 9.32 per cent. During the second quarter, the CEE region of Europe witnessed double-digit secondary sales growth which was higher than the total market; this was aided by new product launches as well as key tenders in markets such as Czech. The Western European business continued expanding through increased penetration of UK, Germany, Spain and NL. Growth for the second quarter in Western European markets was 11 per cent, mainly contributed by Germany and Spain.

Latin America

Glenmark’s revenue from its Latin American and Caribbean operations was at Rs 1,212.41 million (USD 17.28 million) for the second quarter of FY 2019-20, as against Rs 985.03 million (USD 14.07 million), recording an increase of 23.08 per cent. The company expanded its presence in the Brazil respiratory market through an exclusive partnership with Novartis for three respiratory brands. The launch of the three in-licensed respiratory brands from Novartis has enabled the Brazil subsidiary to record good growth in the second quarter. Growth remained subdued in other LATAM markets such as Mexico and the Caribbean

Glenmark Life Sciences

For the second quarter of FY 2019-20, external sales for Glenmark Life Sciences was at Rs 2,697.81 million (USD 38.42 million) as against Rs 2,512.08 million (USD 36.01 million), recording growth of 7.39 per cent over the corresponding period last year.

Domestic and ROW regions led the growth in the second quarter, with both regions recording over 20 per cent growth over the corresponding period last year. The company also expanded its presence in the Japanese market. GLS continued to sustain its leadership position in products like Lercanidipine, Atovaquone, Perindopril, Olmesartan and Aprepitant. GLS is on-track to file four to five DMFs in the upcoming quarters and continues to register multiple products in other ROW markets.

ICHNOS Sciences

As part of its strategy to create a leading and cutting-edge biotech organisation, Glenmark announced the spin-off of its innovation business into a new company headquartered in the US. Setting up this new company would provide enhanced focus to the business and help accelerate the pipeline towards commercialisation. In October 2019, the new innovation company was launched as Ichnos (‘īk-nōz) Sciences. A spin-off of Glenmark Holding SA, with a track-record of improving patients’ lives by providing affordable medicines, the newly-formed company was first approved in principle by the Glenmark Board of Directors in February 2019 and now operates with its own Board of Directors and executive team. Former Gilead executive, Alessandro Riva, MD, is the CEO of Ichnos Sciences. The innovation pipeline of Ichnos will include five novel, first-in-class clinical-stage assets in oncology, auto-immune disease and pain. The assets will also include BEAT (Bispecific Engagement by Antibodies based on the T cell receptor), a proprietary platform; a development site, two research centres; a GMP biologics manufacturing facility and 350 employees worldwide.