Glenmark Pharmaceuticals Ltd. share price target

Glenmark Pharma (GNP) delivered an in-line 2QFY22 operational performance. Strong traction in ROW markets was offset by deceleration in the Domestic Formulation (DF) / US Generics segment. A change in the...

in US derma portfolio (35% of US revenue) due to intense competition 2) thin US product pipeline of generics (47 pending ANDAs) with no major outlicensed deal from NCE portfolio, 3) 60-65% of R&D; spends towards uncertain specialty products, 4) insignificant EBITDA contribution from new Monroe facility even with qualitative approvals (due to higher operating cost), 5) appreciating USD to likely increase debt (current net debt Rs35.5bn) and 6) muted growth in CORE India formulations. GNP guided to receive benefits from launch of few key US generics in short term. We believe those short term opportunities are factored in current price....

What should investors do? Glenmark's share price has de-grown by ~0.7x over the past five years (from ~| 856 in July 2016 to ~| 607 levels in July 2021). In India, it is the market leader in dermatology and improving its presence in respiratory, CVS, anti-infectives and anti-diabetics, in particular. It has also forayed into consumer health segment focusing on Rx-OTC switch products...

In-line 1QFY22; DF drives overall earnings growth Motilal Oswal values your support in the Asiamoney Brokers Poll 2021 for India Research, Sales, Corporate Access and...

Glenmark Pharma Ltd (GNP) is an India-based pharmaceutical company with commercial presence in more than 80 countries across the globe. GNP is primarily focused on generics, specialty and OTC businesses. The company has strong regional/country-specific presence in diabetes,...

We increase our earnings estimates by 3.0/3.3% for FY22E/23E as we increase increased traction from launch of key drugs in US generics and higher Favipiravir sales in India coupled with second wave of COVID-19. 4QFY21...

Despite facing Covid-related challenges in various geographies in Q4, the company posted a stable topline while EBITDA was higher mainly due to better gross margins. Going ahead, the management expects margins to improve due to cost rationalisation measures and decline in R&D; expenses as percentage of sales. Glenmark plans to reduce debt using proceeds from the upcoming API business listing, internal accruals, pipeline monetisation (ICHNOS) and divestment of non-core business. On the capex front, although things are looking a bit strained, the management expects some...

Glenmark Pharma (GNP) delivered marginally lower-than-expected earnings in 4QFY21, led by subdued growth in the Domestic Formulation (DF) segment, flat RoW sales, and decline in the LatAm business. However, the outlook in the DF segment remains promising, aided by COVID-19 drugs. The Europe business is expected to deliver healthy growth on the back of niche launches and recovery in the base business, with the easing of lockdown restrictions. GNP intends to reduce net debt through free cash flow from its core operations as well as fund raising via the Glenmark Life Sciences IPO....

ICHNOS Sciences fund raising to get further delayed. We reduce our earnings estimate by 1% for FY22/23E as we lower our growth projections for semi-regulated market. 3QFY21 earnings were in-line with our estimates led by growth in India formulations and cost rationalization. GNP is our top sell idea given 1) US derma portfolio (35% of US revenue) would lag growth due to competition 2) has thin US product pipeline with only 47 pending ANDAs plus guidance of 8-10 new launches in FY21E, 3) 60-65% of...

IPM is struggling for growth above 10% even after MoM abating COVID concerns and with MRs, physician activities almost reaching pre-COVID level. We believe key reasons for growth below par are (i) subdued new prescription (Rx) leading to volume de-growth (ii) digital marketing yield going south and (iii) sustained lower demand of acute products. Cardiac and anti-diabetic growth takes a breather in Jan-21 at 8.8% and 5.3% after reporting double digit growth in most months during lockdown. While amongst top therapies Gastro and VMN reported double digit growth of 14%...