Glenmark Pharmaceuticals Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Revenues grew 17.9% YoY to | 1943.1 crore (I-direct estimate: | 2021.9 crore) mainly due to 24.4% YoY growth in the US to | 698.2 crore (I-direct estimate: | 698.8 crore). India business grew 10.4% YoY to | 513.8 crore (I-direct estimate: | 520.2 crore) EBITDA margins declined 230 bps YoY to 19.5% (I-direct estimate: 21.1%) due to lower gross margins, higher employee cost. EBITDA rose mere 5.5% YoY to | 379.1 crore (I-direct estimate: | 427.0 crore)...

Glenmark Pharmaceuticals' (GNP) Sales, EBITDA & PAT stood at Rs19.4bn, Rs3.8bn & Rs2.2bn, respectively in 1QFY17. Revenue from US business (~37% of sales) rose 18% yoy to US$104mn in 1QFY17 (vs. US$97mn in Q4FY16 & US$89mn in Q1FY16) due to new product approvals. Revenue from India business (~27% of sales) grew by just 10% yoy to Rs5.1bn due to adverse impact of New Pricing Policy and ban on several fixed dose combinations. Revenue from semi-regulated markets (10% of sales) grew 23% yoy due to strong growth in Russia (50% yoy in CC terms). LatAm (~8% of sales) degrew 29% yoy due to negligible contribution from Venezuela and weak performance in Brazil...

off the EBITDA was ~Rs. 460 crore i.e. 20% of revenues. Adjusted for these, margins improved 310bps. Adjusted net profit grew Avg. daily volume (1yr. on NSE)...

Revenues grew 28.5% YoY to | 2281.3 crore (I-direct estimate: | 1849.6 crore) mainly on account of robust growth across geographies. The company witnessed 21.6% YoY growth in the US to...

ROW (+36%) and LatAm (+34%) sales. US sales of US$ 97mn were inline with our estimates.CoreoperatingmarginadjustingforforexlossofRs840mnandonetime SitagliptinrelatedlitigationcostofRs650mn)compressedby~260bpsyoyto19.8%...

However, margin performance was just about in line as improving revenue mix towards bettermargindomestic/USbusinessraisedEBITDAmarginsby80bpsto22.6%.Ledbylower salesandhighertaxincidenceof33%,PAT(adjustedforforexlossofRs270mn)was19%...

US-Big opportunities ahead: USFDA approval for Glenmark generics hasslowed from 18 in FY11 to 6 in FY15 even as 37 plain filings are pending forapproval for Glenmark. The improved approval rate (8 in H1-FY16) should sustain regular growth while incrementally gZetia (with 180 day exclusivity), gZyvox and gVoricanozole should support an 18% CAGR US formulations growth in FY15-18E.

9 US sales saw steady yoy growth of 10% despite 57% price erosion in base portfolio; GNPguidesforstrongH2ledbypickupinrecent/newlaunches Domesticformulationswereaheadofexpectationswith27%yoyimprovementdueto...

ff Management expects slowdown in Venezuela as it is hard to obtain the requisite import license. Potential threat of significant devaluation in Venezuela puts US$2030mn of company's exposure there at risk. As per our estimates, Venezuela contributed ~6% of FY15 profits. Factoring in the devaluation in FY17E, we...