(Reuters) -Indian drugmaker Glenmark Pharmaceuticals reported a decline in first-quarter adjusted profit on Thursday, hurt by price erosion in key North American and European markets.
Consolidated profit before taxes and exceptional items dropped 9% over the year earlier to 4.19 billion rupees ($47.8 million) during the April-June period. Net sales fell 5% to 30.59 billion rupees.
Sales in North America slipped 0.4%, while that in Europe dropped 4%, the company said in a statement.
KEY CONTEXT
Indian generic drugmakers have been grappling with weak pricing amid stiff competition in global markets. Glenmark’s larger peers such as Cipla and Dr Reddy’s have also reported subdued sales in the U.S. during the reported quarter.
Glenmark’s domestic business, however, continued to benefit from its lead in key chronic therapy areas, including cardiac, respiratory and dermatology therapeutics.
Diabetes, one of the company’s key therapy areas, led demand in the Indian pharmaceutical market, which grew 8% in June.
Domestic sales rose 3.7% during the quarter, led by strong demand for its drugs used to treat cardiovascular and skin conditions.
PEER COMPARISON
Estimates (next 12 Analysts’ sentiment
months)
RIC PE EV/EBITDA Revenue Profit Mean # of Stock to Div
growth growth rating* analysts price yield
(%) (%) target** (%)
Glenmark 31.06 18.18 12.63 27.71 Buy 9 0.95 0.12
Pharmaceuticals
Ltd
Mankind Pharma Ltd 44.96 27.19 17.22 12.52 Buy 15 0.91 0.04
Torrent 46.26 27.15 12.61 25.39 Buy 29 0.93 0.91
Pharmaceuticals
Ltd
J B Chemicals and 31.65 20.48 12.23 18.57 Buy 12 0.86 0.74
Pharmaceuticals
Ltd
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL TO JUNE STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.5870 Indian rupees
(Reporting by Kashish Tandon in Bengaluru; Editing by Shilpi Majumdar)
