After posting 20 percent growth in FY14, Glenn Saldanha, MD & CEO Glenmark Pharmaceuticals of expects to see a bit of a slowdown on account of a challenging US market. Glenmark's consolidated revenue was at Rs 1,703.56 crore as against Rs 1,335.86 crore, an increase of 27.53%. According to the company, the net profit is not comparable due to exceptional item of Rs 217 crore on account of provision made by Glenmark Generics Inc towards claims (including incidental expenses) of Abbott Laboratories in the patent litigation in respect of "TARKA" (oral anti-hypertensive medication). Pharma analyst Siddhant Khandekar of ICICI Direct said, "The growth for the company did not happen from where it was expected like the US and the Indian market. Unlike estimates of 22%, US market grew at only 17%. Rather RoW and APIs reported better growth numbers. Whether the India business suffered on account of trade-related issues or the price control order is yet to understand as last year when many other companies were attributing their week performance in the Indian markets to these reasons, Glenmark did not reported anything major says Sachin Karpe.
Also the provision towards claims of Abbott was earlier expected to be in tune of Rs 96-100 crore but it turned out to be Rs 217 crore. So there could be a portfolio churning on which a clarity is yet to come. The US business grew at 16.71% to Rs 500.85 crore during the quarter under review while the European formulations business grew at 29.51% to Rs 193.20 crore. The rest of the world (RoW) and the active pharmaceutical ingredient business respectively grew at 49.33% to Rs 342.53 crore and at 63.08% to Rs 153 crore. On the other hand, the company's Indian business reported only 7.88% growth to Rs 382.99 crore during the fourth quarter. Glenmark is a leading player in the discovery of new molecules, both NCEs (new chemical entity) and NBEs (new biological entity), with seven molecules in various stages of clinical development & pre-clinical development. The company has a significant presence in branded generics markets across emerging economies including India. It's subsidiary, Glenmark Generics Limited has a fast growing and robust US generics business. The subsidiary also markets APIs to regulated and semi-regulated countries. Glenmark employs over 10,400 people in over 80 countries. It has 14 manufacturing facilities in four countries and has 6 R&D centres.
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