Glenmark Pharmaceuticals Ltd. share price target

Glenmark Pharma (GNP) delivered in-line sales for 3QFY21. However, earnings were better than expected, led by the Domestic Formulation (DF)/API segment and controlled opex. GNP is confident of sustaining the profitability over the next 1224M, led by a better outlook in DF/US/API and an ongoing cost rationalization exercise. We raise our EPS estimate for FY21/FY22/FY23 by 4%/8%/6%, factoring in a) new launches in DF/US, b) stable price erosion in the US base business, c) an improved outlook in the API segment, and d) benefits from higher operating...

US generics comprise ~30% of total revenues. So far, the company has received approval for 167 ANDAs while another 44 are pending approval, of which 22 are Para IV applications. However, Glenmark's derma portfolio is facing stiff pricing pressure in the US. Going ahead, traction from the newly commissioned US based Monroe facility will be the key determinant besides sustained product launches. We expect the US to grow at 4.5% CAGR in FY20-23E to | 3581 crore on the back of new launches....

Glenmark Pharmaceuticals Limited is a research-driven company and has established a presence globally.

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,...

Guided announcement of ICHNOS Sciences fund raising plan by Dec-CY20. We increase our earnings estimate by 13% for FY22E with situational benefits from Favipiravir (Brand: FabiFlu) in Indian market and lower overhead spend...

Glenmark Pharma (GNP) delivered better-than-expected earnings growth led by Domestic Formulation (DF), ROW, EU, and API segments. DF growth was partly aided by higher off-take of COVID-related medicine. Lower opex further supported better profitability for the quarter. We tweak our EPS estimate for FY21/FY22, factoring in a) better traction in DF, b) cost rationalization benefits, and c) continued pressure on the LATAM business. We also introduce FY23 estimates. We value GNP at 14x 12M forward earnings to arrive at Target Price of INR495. We believe earnings...

US generics comprise ~30% of total revenues. So far, the company has received approval for 165 ANDAs while another 47 are pending approval, of which 24 are Para IV applications. However, Glenmark's derma portfolio is facing stiff pricing pressure in the US. Going ahead, traction from the newly commissioned US based Monroe facility will be the key determinant besides sustained product launches. We expect the US to grow at 4.7% CAGR in FY20-23E to | 3602 crore on the back of new launches. Targeting specific therapies in IPM...

1QFY21 earnings were mixed bag with revenue lower than our estimate however EBITDA, EBITDAM and PAT were higher due to lower SG&A; (operating leverage). We continue to maintain SELL and retain TP of Rs365(12x PE of FY22E) as its core business continues to witness headwinds that may impact growth and margin. GNP is our top sell idea as 1) US derma portfolio (35% of US revenue) continues to witnesses 15-20% price erosion, 2) has thin product pipeline for US market with guidance of 8-10 new launches...

17 August 2020 Despite reduced sales in India (DF)/the US/ROW/LATAM, Glenmark Pharma (GNP) delivered better-than-expected 1QFY21 performance led by product mix change and sharp reduction in other opex. We have raised our EPS estimate by 19%/14% for FY21/FY22E and raised our P/E multiple to 14x (from 12x earlier) to factor in (a) cost rationalization benefits, and (b) the gradually improving outlook for India and other emerging markets (EMs). Accordingly, we have arrived at a price target of INR495 on 12M forward earnings basis. While 17% earnings CAGR over FY20-22E should be better than the earnings decline over FY17-20, we are yet to see meaningful improvement in return ratios. Revenues grew 2.7% YoY to INR23.4b (v/s est. The YoY growth was driven by Europe and DF, partially offset by decline in RoW markets and LATAM sales. DF (34% of sales) revenue grew 3.7% YoY to INR7.8b. Europe revenue (12% of sales) grew ~13% YoY to INR2.

US generics comprise ~30% of total revenues. So far, the company has received approval for 164 ANDAs while another 44 are pending approval, of which 24 are Para IV applications. However, Glenmark's derma portfolio is facing stiff pricing pressure in the US. Going ahead, traction from the newly commissioned US based Monroe facility will be the key determinant besides sustained product launches. We expect the US to grow at 5.2% CAGR in...