Glenmark Pharmaceuticals Ltd. share price target

Glenmark Pharmaceuticals’ (Glenmark) Q1FY26 performance was below our expectation due to muted show across regions. Rise in other operating income inflated margins and PAT.

Glenmark Pharma (GNP) reported a lower-than-expected performance in 1QFY26, as revenue/EBITDA/PAT came in 9%/14%/15% below our estimates.

Glenmark Pharmaceuticals’ (Glenmark) subsidiary Ichnos Glenmark Innovation (IGI) has out-licensed its oncology asset ISB 2001 to Abbvie in a deal valued at USD 1.925bn, including USD 700mn upfront, USD 1.225bn in milestones and tiered doubledigit royalty on net sales.

AbbVie partnership signals a new era for Glenmark Pharma (GNP) GNP’s subsidiary, Ichnos Glenmark Innovation (IGI), has signed an exclusive licensing agreement with AbbVie for its lead investigational asset, ISB-2001.

Ichnos Glenmark Innovation (IGI), a wholly-owned subsidiary of Glenmark
Pharmaceuticals, has entered into an exclusive global licensing agreement
with AbbVie for the development and commercialization of IGI’s lead
oncology asset, ISB 2001. This first-in-class CD38×BCMA×CD3 trispecific
antibody is currently in Phase 1 clinical trials for relapsed/refractory multiple
myeloma (R/R MM).

Glenmark Pharma (GNP) posted a marginally lower-than-expected operating performance in 4QFY25 (2%/5% miss on revenue/EBITDA). Elevated interest outgo and lower other income led to a 16% miss on earnings.

As the stock is not under our coverage, we do not offer a valuation. However, Glenmark pharmaceuticals is trading at 18x FY27 PE (Bloomberg Estimates).

As the stock is not under our coverage, we do not offer a valuation. However, Glenmark pharmaceuticals is trading at 18x FY27 PE (Bloomberg Estimates).

Glenmark Pharmaceuticals’ (Glenmark) Q1FY25 result was driven by better traction in India (+12% YoY) and EU (+21%) and lower R&D (-190bps).

Glenmark Pharma (GNP) delivered an in-line operating performance in 1QFY25. It witnessed robust traction in the domestic formulation (DF) and Europe businesses.

pairment of INR23b
? Glenmark Pharma (GNP) posted lower-than-expected revenue in 4QFY24.
However, it delivered better-than-expected profitability for the quarter,
aided by an improved product mix and lower raw material costs. Having said
this, GNP has taken a considerable impairment charge on manufacturing
facilities and certain intangibles (~INR32b) during the quarter

Glenmark Pharma (GNP) is divesting 75% stake in its API arm Glenmark Lifesciences (GLS) for INR 56.5bn (INR 615 per share) to Nirma Limited valuing GLS at 11.7x FY25E EPS and 6.4x EV/EBITDA. GNP, though, will still hold nearly 7.8% stake in Glenmark Lifesciences. The proceeds from the transaction will be used to pare off debt (INR 43.4bn at the end of FY23) of GNP. We believe the proposed transaction may have a negative impact of 10% on FY25E revenue (of INR 172bn) and EBITDA margin may shrink 150bps, though, repayment of debt may partially offset the impact.

Traction in Ryaltris across EU and RoW markets drove a robust 22.5% YoY growth in Glenmark’s revenue in Q1FY24. Divestment of Razel and other derma brands took a toll on India growth (up 2.8% YoY).