InvestorQ : Has Glenmark shown some improvement in its quarterly numbers in the Mar-20 quarter?
Aditi Sharma made post

Has Glenmark shown some improvement in its quarterly numbers in the Mar-20 quarter?

Answer
user profile image
Aashna Tripathi answered.
3 months ago


Glenmark reported 8.5% growth in the Mar-20 quarter in terms of fourth quarter revenues with most of the improvement in performance coming from surge in its domestic market demand as well as demand from Europe. Glenmark managed to capitalise on opportunities in Europe as the COVID-19 disruptions impacted sales of competitors.

Indian revenues of Glenmark increased sharply by 14.5%, which managed to outperform the overall pharma industry growth of 9.6%. On another front, Glenmark also managed to improve and build on its market position in some key domestic categories. However, the critical US business continued to remain weak with revenues sliding by as much as 1%.

Revenues from allied regions like Africa, Asia and the CIS rose 12.7% even as Glenmark Latin American business grew on the back of launches of respiratory products. The key takeaway was that in the fourth quarter, R&D expenses were at a high of 12.6% of revenues. This should be a long term positive although immediate headwinds do exist.

At a strategic level, Glenmark is planning to lower debt to reduce solvency risk and is also working to revive capital expenditures by divesting some of its non-core assets. One recent boost for Glenmark was the recent launch of Favipiravir to help in early-stage COVID-19 treatment. Valuation could be a concern, but that is true of all pharma stocks.