Glenmark Pharmaceuticals Ltd. reports Consolidated Revenue of Rs. 29,096 mn
The lower sales in the current quarter are mainly on account of a one-time impact on the Company's India business.
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MUMBAI: Glenmark Pharmaceuticals Ltd. (Glenmark), a research-led, global pharmaceutical Company, today announced its financial results for the third quarter ended December 31, 2023. Consolidated Figures (Glenmark and Glenmark Life Sciences Ltd. [GLS] combined) For the third quarter of FY 2023-24, Glenmark's consolidated revenue was at Rs. 29,096 Mn as against Rs. 34,639 Mn recording a decline of 16% YoY.
The lower sales in the current quarter are mainly on account of a one-time impact on the Company's India business. Excluding this impact, Glenmark's consolidated revenue in Q3 FY24 would have been approximately Rs. 37,796 Mn, with an approximate growth of 9% over previous year. Adjusted1 EBITDA was at Rs. 289 Mn in the quarter ended Dec 31, 2023 as against Rs. 6,202 Mn in the previous corresponding quarter.
During Q3 FY 2023-24, the Company implemented changes in its overall distribution model of its India business, through consolidation of stock points and rationalization of channel inventories. This led to a temporary dip in sales for the India business during the quarter. However, going forward, this will help improve the Company's operating margins and overall working capital.
These changes in the India distribution system will also enable the Company to accelerate the roll-out of its anti-counterfeit packaging across the country. Reported Figures (Continuing Operations - Glenmark excluding GLS) For the third quarter of FY 2023-24, Glenmark's revenue was at Rs. 25,067 Mn as against Rs. 31,002 Mn recording a decline of 19% YoY. Adjusted1 EBITDA was at Rs. -1,444 Mn in the quarter ended Dec 31, 2023 as against Rs. 4,740 Mn in the previous corresponding quarter.
"Glenmark is going through a transitionary phase on account of the divestment of Glenmark Life Sciences. In spite of the one-time impact on our India business revenue due to the changes in our distribution model, our secondary sales growth remains strong, and we continue to out-perform the market in our key therapy areas.
Meanwhile, our Europe and the RoW markets have maintained their robust growth trajectories, and we anticipate a resurgence of our U.S. business from Q4; driven by new injectable product launches " said Glenn Saldanha, Chairman and Managing Director, Glenmark Pharmaceuticals Ltd. He further added, "We secured yet another out-licensing deal for one of our assets in our innovation pipeline, OX40 antagonist monoclonal antibody portfolio, to Astria Therapeutics.
This further strengthens our position as one of the leading research-led pharmaceutical companies from India. The recent formation of Ichnos Glenmark Innovation (IGI), an alliance with our global fully integrated, clinical-stage biotech subsidiary Ichnos Sciences Inc. will enable us to accelerate our efforts in new drug discovery for cancer treatment. Going forward, all of Glenmark's innovation efforts will be channelized through IGI.
" Glenmark Pharmaceuticals Ltd. India Sales from the formulation business in India in Q3 FY 2023-24 was at Rs. 2,622 Mn as against Rs. 10,745 Mn in the previous corresponding quarter, recording a decline of 75.6% YoY. North America North America registered revenue from the sales of finished dosage formulations of Rs. 7,629 Mn for the quarter ended Dec 31, 2023 as against revenue of Rs. 8,373 Mn for the previous corresponding quarter, recording decline of 8.9% YoY.