GLENMARK PHARMACEUTICALS LTD - Q4 FY 20 RESULTS REVIEW

GLENMARK PHARMACEUTICALS LTD

Q4 FY 20 RESULTS REVIEW

A research led global integrated Pharma company announced the financial results for Q4 FY 20

Glenmark Pharma (in Rs. Cr.)	Mar '20	Dec '19	Sep '19	Jun '19	Mar '19	YOY	QOQ
Net Sales	2,767.49	2,735.56	2,763.73	2,283.60	2,526.08	9.56	1.17
Other Operating Income	--	--	51.31	39.28	37.39
Total Income From Operations	2,767.49	2,735.56	2,815.04	2,322.9	2,563.5	7.96	1.17
Consumption of Raw Materials	594	692.22	646.65	608.61	614.46	-3.33	-14.19
Purchase of Traded Goods	180.43	311.14	278.81	258.7	171.82	5.01	-42.01
Increase/Decrease in Stocks	201.62	-77.02	60.69	-57.2	74.44	170.85	-361.78
Employees Cost	524.24	557.25	686.6	486.69	494.59	5.99	-5.92
Depreciation	126.28	106	94.16	90.73	80.97	55.96	19.13
Other Expenses	801.51	811.9	691.88	684.18	844.04	-5.04	-1.28
P/L Before Other Inc., Int., Excpt. Items & Tax	339.41	334.08	356.25	251.18	283.16	19.87	1.6
Other Income	44.15	32.96	80.83	1.67	39.06	13.03	33.95
Interest	98.47	96.06	89.77	93.02	81.91	20.22	2.51
P/L Before Tax	317.96	270.98	347.3	159.84	240.31	32.31	17.34
Tax	97.65	80.14	91.76	50.55	78.65	24.16	21.85
NET PROFIT	220.31	190.84	255.54	109.28	161.66	36.28	15.44
Equity	28.22	28.22	28.22	28.22	28.22	0	0
Basic EPS	7.81	6.76	9.06	3.87	5.73	36.3	15.53
Diluted EPS	7.81	6.76	9.06	3.87	5.73	36.3	15.53
MP
Jun 26, 15:59
466.70 8.60 (1.88%)
Volume
11,105,234
52 Wk L/H	168	572.7
Valuation
Market Cap (Rs Cr.)
13,173.02
P/E	10.2
Book Value (Rs)
		423.23
Dividend (%)
		200
Market Lot		1
Industry P/E		31.53
EPS (TTM)		45.6
P/C		9.45
Price/Book		1.1
Dividend Yield.(%)		0.43
Face Value (RS)		1
Deliverables (%)		10.5
Management
Name
Designation
Glenn Saldanha		Chairman & Managing Director
V S Mani		Executive Director & Global CFO
Share Holding Pattern in (%)
Standalone	Mar-20	Dec-19	Jun-19	Dec-18
Promoters	46.62	46.59	46.58	46.54
Pledged	0	0	0	0
FII/FPI	28.51	30.16	31.04	32.27
Total DII	11.8	11.72	13.05	11.85
Fin.Insts	2.99	2.97	2.62	2.72
Insurance Co	0	0	0	0
MF	3.74	4.07	4.88	4.02
Others DIIs	5.07	4.68	5.55	5.11
Others	13.06	11.53	9.35	9.34
Total	99.99	100	100.02	100
The company has a good dividend track report and has consistently declared dividends for the last 5 years.

For the y/e 31^st march 2020, consolidated revenue was Rs.10640.969 cr against rs.9865.469 an increase of 7.86% against corresponding qtr.

Consolidated net profit was rs.775.970 against  Rs.924.993 in previous year.

Consolidated EBITDA stood at Rs.1698.082 cr against Rs.1585.799 cr in previous year.

Glenmark’s growth momentum sustained in the 4^th quarter despite the covid 19 pandemic and  challenging generic business environment across markets globally.-said Glenn Saldanha, chairman and MD.

India

Sales from formulation business in india for 4^th quarter was at rs.764.753 against rs.667.794 in corresponding quarter , a growth of 14.52%

Consumer care business

Maintained strong growth momentum of 31% in q4 and the business setting a new mile stone of sales of inr 203.8 cr in this financial year.

USA

Registered revenue from the sale of finished dosage formulations of rs.761.902 cr for q4 against rs.769.6 cr for corresponding quarter, a de growth of 1%.

Africa, Asia and CIS region (ROW)

Revenue was rs.411.568 cr against rs.318.407 cr  recording a growth of 29.26%

LATIN AMERICA & CORREBEAN OPERATIONS

Revenue is Rs.176.873 cr against Rs.120.407 cr an increase of 46.9%

API BUSINESS

For 4^th qtr, external sales for Glenmark life sciences was rs.261.379 cr against rs.248.777 , a growth of 5.07% over corresponding period.

For full year, external sales stood at rs.1023.917.

Covid affected facilities in March and April.

By end April, Glenmark stabilized production and logistics to ensure uninterrupted supplies to all markets.

Mfg facilities are all operational now.

Raw material supply has improved significantly.

Internal logistics within India stabilized by April end.

Exports to all markets resumed significantly by first week of May

.

COVID MEDICINE

In a land mark development for Covid 19 , Glenmark announced antiviral drug Favipiravir under the brand name Fabiflu@ for the treatment of mild to moderate Covid flu patients.

Received approval for mfg and mktg from India’s drug regulator as part of accelerated approval process, considering the emergency situation in India.

The approval’s restricted use entails responsible medication use where every patient must have signed informed consent before treatment initiation. 

Glenmark’s approval makes Fabiflu@ the first oral Favipiravir-approved medication in India for Covid19.

The antiviral offers broadspectrum RNA virus coverage with clinical improvement noted across age groups 20-90 years.

Favipiravir can be used in covid19

Glenmark recently announced a new randomized, open label study to test the combined efficacy of 2 antiviral drugs Favipiravir and umifenovir as a potential Covi19 treatment.

Their combination may improve tackling of high viral loads in patients during early periods of decease.

Early administration is desirable as viral load peaks at the time of symptom onset.

Combination of the 2 drugs at this stage can prevent, delay the emergence of resistance,.

Favipiravir is an antiviral drug approved in Japan in 2014 for influenza infections.

It inhibits viral replication.

Umiferavir is licensed for certain infections in Russia and China. It impedes the viral attachment to cells and acts as a viral entry inhibitor.

The new combination clinical trial will be called FAITH in the indian hospital setting.

158 hospitalized patients of covid19 will be enrolled  in the combined study and randomized in 2groups; one receiving the combination and another receiving fevipiravir alongwith standard supportive care.

DCGI has endorsed Hetero Pharma for the supply of drug Covifor (Remdesivir) to various states where the many suspected or laboratory-confirmed COVID cases are hospitalized because of drastic symptoms of the Corona virus.

Hetero stated that Covifor (Remdesivir) will be provided in a 100 mg vial (injectable) and must be administered intravenously in a hospital or intensive care unit under the supervision of a healthcare practitioner.

What is Covifor?

·         Covifor is a generic version of Remdesivir drug which can be used in emergency conditions of Corona cases

·         It is a drug whose first batch will be supplied to Delhi, Maharastra, Gujrat etc.

·         The company is sure about enough stock to provide to the present requirements of the drug. 

·         COVID-19 therapy by Covifor will cost less than 30,000 per patient. Six doses of the drug will be provided in the aforementioned time frame. 

Dr. M. Srinivasa Reddy stated that “Covifor is Remdesivir’s first generic brand. With this Covifor drug, we hope to lessen the treatment time of patients within the hospital, decreasing the increasing pressure on the medical foundation that’s currently overburdened because of a sudden acceleration in COVID- 19 infection rates”.

During the year, US business was significantly impacted in terms of 3 products – Mupirocin cream,Atomoxetine hudrochloride & calcipotriene cream.

Sales were also impacted due to Ranitidine.

16 New products were lunched.

Approval was granted for Deferasirox .

Also launched previously approved products Amlodipine and olmesartan Medoxomil Tablets and Aspirin and Di pyridamole capsules.

One ANDA filed . Plans to file 5 in forthcoming qtr.

Filed one ANDS application and with NDS application with Canada.

Now, Mktg Portfolio on 31 March has 165 generic products for US Mkt.

Company currently has 44 applications at various stages of approval with USFDA of which 24 are paragraph IV applications.

Glenmark launched Momate Rhino Advance metered Nasal spray in OTC for allergic rhinitis.

In Feb 2020, launched its new montelukast+ levocetirizone products.

Some products for Russia.

Asian region performance was average.

Africa region recorded secondary sales growth due to Kenya subsidiary.

Europe recorded a growth of 29.26% in Q4.

Glenmark Life sciences

For mfg and mktg across all mkts globally

For Q4, growth in external sales  was 5.07%

ICHNOS SCIENCES

For 9 months ended Dec 20, Glenmark invested Rs.594.3 cr and in the fourth qtr, invested approx. Rs.225 cr. Totally Rs.819.3 cr

Initiated process to raise capital in US in this month and the development of its pipeline and for future growth plans.

Developing new chemical entities for oncology