Complex product launches and Specialty businesses to drive growth
Glenmark is an India-based pharmaceutical company with commercial presence in more than 60 countries across the globe. It manufactures and markets generic formulation products & active pharmaceutical ingredients (API). The company has been focusing on key areas including inflammation (asthma/COPD, rheumatoid arthritis etc.) and pain (neuropathic pain and inflammatory pain). Further, several molecules of the company are in various stages of clinical development.
View & Valuvation
We expect revenue and PAT to grow at a CAGR of 15.1% and 21.4% respectively over FY16-19E. Further, we expect EBITDA margin to expand by 160bps to 22.4% over FY16-19E on account of on account of a) exclusivity (up to 180 days) on certain product launches including Zetia b) shifting of portfolio mix towards high-margin niche products Hence, we recommend Glenmark with ‘BUY’ rating with a TP of Rs1039 based on 19.5x FY19E PE.
Glenmark Pharmaceuticals Limited.
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Going through this post…interesting thing here is the way you guys are writing is really ingenious..i love to read your articles..
Hi Ashish Ranjan,
We have provided our updated view on Glenmark Pharmaceuticals Ltd.
Stay invested in Glenmark Pharmaceuticals Ltd – Target : Rs. 774.
Glenmark Pharma is targeting to increase its sales contribution from the US, Indian and European markets, and active pharmaceutical ingredient (API) segment to 80% by 2021. Further, Glenmark’s aim to increase its presence in complex generics bodes well for the company. The company expects to launch around 10-15 products in FY18 including 3-4 limited competition derma products. Glenmark’s pipeline segment remains strong as it has 67 applications pending with the US FDA, of which 27 are Paragraph IV applications. Moreover, it has a pipeline of 7 new molecular entities (NMEs) in various stages of clinical development. We expect US business to remain under pressure in FY18, however, a recovery is expected in FY19 on the back of niche launches like gWelchol and gRenvela.
Going through this post…interesting thing here is the way you guys are writing is really ingenious..i love to read your articles..
Hi Ashish Ranjan,
We have provided our updated view on Glenmark Pharmaceuticals Ltd.
Stay invested in Glenmark Pharmaceuticals Ltd – Target : Rs. 774.
Glenmark Pharma is targeting to increase its sales contribution from the US, Indian and European markets, and active pharmaceutical ingredient (API) segment to 80% by 2021. Further, Glenmark’s aim to increase its presence in complex generics bodes well for the company. The company expects to launch around 10-15 products in FY18 including 3-4 limited competition derma products. Glenmark’s pipeline segment remains strong as it has 67 applications pending with the US FDA, of which 27 are Paragraph IV applications. Moreover, it has a pipeline of 7 new molecular entities (NMEs) in various stages of clinical development. We expect US business to remain under pressure in FY18, however, a recovery is expected in FY19 on the back of niche launches like gWelchol and gRenvela.
Amazing insights. Any thoughts on the performance of Glenmark Pharmaceuticals in 2018. Thanks!
Hi Rakesh Verma,
We have provided our updated view on Glenmark Pharmaceuticals Ltd.
Stay invested in Glenmark Pharmaceuticals Ltd : Target – Rs. 774
Glenmark Pharma is targeting to increase its sales contribution from the US, Indian and European markets, and active pharmaceutical ingredient (API) segment to 80% by 2021. Further, Glenmark’s aim to increase its presence in complex generics bodes well for the company. The company expects to launch around 10-15 products in FY18 including 3-4 limited competition derma products. Glenmark’s pipeline segment remains strong as it has 67 applications pending with the US FDA, of which 27 are Paragraph IV applications. Moreover, it has a pipeline of 7 new molecular entities (NMEs) in various stages of clinical development. We expect US business to remain under pressure in FY18, however, a recovery is expected in FY19 on the back of niche launches like gWelchol and gRenvela.
Can you update your view on Glenmark Pharmaceuticals Limited? i have 2000 Qtn avg price 490 can you advice should i hold or exit ?
pls also give latest fundamental report if you have any
Can you update your view on Glenmark Pharmaceuticals Limited? i have 2000 Qtn avg price 490 can you advice should i hold or exit ?
pls also give latest fundamental report if you have any
Amazing insights. Any thoughts on the performance of Glenmark Pharmaceuticals in 2018. Thanks!
Hi Rakesh Verma,
We have provided our updated view on Glenmark Pharmaceuticals Ltd.
Stay invested in Glenmark Pharmaceuticals Ltd : Target – Rs. 774
Glenmark Pharma is targeting to increase its sales contribution from the US, Indian and European markets, and active pharmaceutical ingredient (API) segment to 80% by 2021. Further, Glenmark’s aim to increase its presence in complex generics bodes well for the company. The company expects to launch around 10-15 products in FY18 including 3-4 limited competition derma products. Glenmark’s pipeline segment remains strong as it has 67 applications pending with the US FDA, of which 27 are Paragraph IV applications. Moreover, it has a pipeline of 7 new molecular entities (NMEs) in various stages of clinical development. We expect US business to remain under pressure in FY18, however, a recovery is expected in FY19 on the back of niche launches like gWelchol and gRenvela.