Glenmark Pharmaceuticals Ltd. share price target

Glenmark Pharmaceuticals (GNP) has delivered a better-than-expected performance on all metrics in 2QFY19. Aided by growth in all geographies (except LatAm), its revenue/EBITDA/PAT exceeded our estimate by 4%/7%/12%, respectively. Its revenue grew by 14.4% YoY to Rs25.8bn led by healthy growth in US (+11.5%) to Rs8.1bn, India (+9.5%), RoW (+21.1%) and Europe business (+30.4%), while LatAm sales declined by 5.9% YoY. Gross margin contracted by 83bps YoY to 65.9% due to adverse product-mix, while EBITDA margin remained YoY flat at 17%. Its EBITDA and PAT grew by 13.3% YoY and 16.4% YoY to Rs4.4bn and Rs2.4bn, respectively. We maintain...

We lower our EPS estimates by 8% for FY20E to factor in continued pricing pressure in the base business and delay in company's key drug launches. Strong pending niche ANDA pipeline coupled with expected monetization of Specialty and innovation R&D; pipeline and potential out-licensing deals for its novel drugs are some of the key positives. Hence, we maintain HOLD' rating with a revised TP of Rs695. Weak US sales; Expected key launches to drive business going ahead GNP reported 8.4% YoY decline in consolidated revenue impacted by decline in the US business (down 33% YoY) owing to continued pricing pressure in the US and high base (marketing exclusivity of gZetia in...

Maintain BUY with a revised TP of Rs 691 (18x FY20E and Rs 135/sh for pipeline). Glenmark pharma (GNP) reported a decent set of numbers in its 1QFY19 results. Revenue at Rs 21.3bn was down 8.6%YoY and 5.3%QoQ. EBITDA margin at 14.6% declined 880bps YoY but recovered 150bpsQoQ. PAT at Rs 2.2bn was reduced by 31.6%YoY but showed a strong sequential growth of 47.4%. These numbers are not comparable on a YoY basis because GNP had launched Ezetimibe (generic Zetia) with its partner Endo in December 2016, and had exclusivity on the product.

Glenmarks's Q1FY19 results were a mixed bag, while the sales and EBITDA were 9.9%/ 10.9% below our expectations; APAT was up 7.8% over IDBIEst. given higher Other Income which included Rs125Cr of forex gain. Sales were down 8.4% YoY (-5% QoQ) at...

ICICI Securities Ltd | Retail Equity Research Revenues declined 8.4% YoY to | 2165.6 crore (I-direct estimate: | 2201.3 crore) mainly due to 33% decline in the US to | 704 crore (Idirect estimate: | 727.5 crore) on the back of high base of gZetia exclusivity in Q1FY18. Europe, on the other hand, grew 35.6% YoY to | 219.8 crore (I-direct estimate: | 186.4 crore). India business grew 7.6% YoY to | 663.3 crore (I-direct estimate: | 690.4 crore) EBITDA margins contracted 842 bps YoY to 16.0% (I-direct estimate: 17.0%) attributable to higher base of gZetia exclusivity. EBITDA...

Maintain BUY with a revised TP of Rs 710 (16x FY20E and Rs 135/sh for pipeline). Affected by lack of lucrative product approvals for the US market and higher R&D; spend, Glenmark pharmas (GNP) reported second consecutive quarter with sub-par profitability. EBITDA declined 41% YoY to Rs 2.9bn and EBITDA margin at 13.5% was down 735bps YoY. Top line decreased 7.2%YoY due to loss exclusivity in gZetia. The US business declined 30%YoY/5%QoQ to Rs 7bn. Reported PAT at ~Rs 1.5bn was up ~600%YoY/60%QoQ supported by forex gains of Rs 640mn (vs loss in 3QFY18).

ff US Biz (31% of Sales): US base business declined by 27.1% YoY to US$109mn due to higher price erosion and large YoY base owing to gZetia contribution. GNP expects price erosion, which stood at 12% in 4QFY18, to remain in FY19E. The Company intends to launch 10-12 products (including limited-competition products) in FY19E. Cumulatively, it filed 193 ANDAs, out of which 62 are pending for approvals (including Para-IV: 26). Indore plant has received...

Revenues declined 7.2% YoY to | 2280 crore (I-direct estimate: | 2347 crore) mainly due to 30% YoY decline in the US to | 700 crore (I-direct estimate: | 733 crore) on the back of high base of gZetia exclusivity in Q4FY17. Europe, on the other hand, grew 38.8% YoY to | 319 crore (I-direct estimate: | 264 crore) EBITDA margins contracted 373 bps YoY to 14.3% (I-direct estimate: 18.5%) attributable to lower gross margins (65.6% in Q4FY18 vs. 68.4% in Q4FY17) and higher employee cost. EBITDA declined 26.4%...

India business and new launches in the US to drive growth Glenmark Pharma Ltd (GNP) is an India-based pharmaceutical company with commercial presence in more than 60 countries across the globe. The company has...

Maintain BUY with a revised TP of Rs 780 (16x Dec-19E and Rs 135/sh for pipeline). Glenmarks (GNP) 3QFY18 performance was sub-par, as pricing pressure in the US business, higher R&D; and forex losses weighed on profits. While YoY comparisons are not apt on account of the exclusive launch of gZetia in 3QFY17, the top-line declined ~2% QoQ to Rs 21.7bn (in-line with estimates). EBITDA margin disappointed at 13.4% (vs expectation of 18%), down ~260bps QoQ. Gross margins declined ~220bps QoQ on the back of an inferior business mix, and R&D; costs remained elevated (12.9% of sales vs 12% QoQ). PAT was ~Rs 935mn, dragged down ~54% QoQ by forex losses of Rs 480mn (vs gain in 2QFY18).