2021-08-17 Glenmark Pharmaceuti.. Prabhudas Lilladhar

 

553.60 555.00 553.60
(-4.21%) Target met Hold

Q1FY22 Result Update - Concerns on debt remain unresolved; Benefits from Covid, US launches played out ...

in US derma portfolio (35% of US revenue) due to intense competition 2) thin US product pipeline of generics (47 pending ANDAs) with no major outlicensed deal from NCE portfolio, 3) 60-65% of R&D; spends towards uncertain specialty products, 4) insignificant EBITDA contribution from new Monroe facility even with qualitative approvals (due to higher operating cost), 5) appreciating USD to likely increase debt (current net debt Rs35.5bn) and 6) muted growth in CORE India formulations. GNP guided to receive benefits from launch of few key US generics in short term. We believe those short term opportunities are factored in current price....

2021-08-16 Glenmark Pharmaceuti.. Motilal Oswal

554.00 600.00 554.00
(-4.28%) 13.14 Neutral 2021-08-16 Glenmark Pharmaceuti.. ICICI Securities Limited

569.35 680.00 569.35
(-6.86%) 28.23 Buy

Glenmark Pharmaceuticals

What should investors do? Glenmarks share price has de-grown by ~0.7x over the past five years (from ~| 856 in July 2016 to ~| 607 levels in July 2021). In India, it is the market leader in dermatology and improving its presence in respiratory, CVS, anti-infectives and anti-diabetics, in particular. It has also forayed into consumer health segment focusing on Rx-OTC switch products...

2021-06-03 Glenmark Pharmaceuti.. Geojit BNP Paribas

614.40 717.00 614.40
(-13.69%) 35.21 Buy

GLENMARK PHARMACEUTICALS

Glenmark Pharma Ltd (GNP) is an India-based pharmaceutical company with commercial presence in more than 80 countries across the globe. GNP is primarily focused on generics, specialty and OTC businesses. The company has strong regional/country-specific presence in diabetes,...

2021-06-01 Glenmark Pharmaceuti.. Prabhudas Lilladhar

614.80 509.00 614.80
(-13.74%) 4.02 Sell 2021-05-31 Glenmark Pharmaceuti.. Motilal Oswal

594.70 580.00 594.70
(-10.83%) Target met Neutral

Better business mix/operating leverage drives profitability

Glenmark Pharma (GNP) delivered marginally lower-than-expected earnings in 4QFY21, led by subdued growth in the Domestic Formulation (DF) segment, flat RoW sales, and decline in the LatAm business. However, the outlook in the DF segment remains promising, aided by COVID-19 drugs. The Europe business is expected to deliver healthy growth on the back of niche launches and recovery in the base business, with the easing of lockdown restrictions. GNP intends to reduce net debt through free cash flow from its core operations as well as fund raising via the Glenmark Life Sciences IPO....

2021-05-31 Glenmark Pharmaceuti.. ICICI Securities Limited

594.70 750.00 594.70
(-10.83%) 41.43 Buy

Glenmark Pharmaceuticals

Despite facing Covid-related challenges in various geographies in Q4, the company posted a stable topline while EBITDA was higher mainly due to better gross margins. Going ahead, the management expects margins to improve due to cost rationalisation measures and decline in R&D; expenses as percentage of sales. Glenmark plans to reduce debt using proceeds from the upcoming API business listing, internal accruals, pipeline monetisation (ICHNOS) and divestment of non-core business. On the capex front, although things are looking a bit strained, the management expects some...

2021-02-16 Glenmark Pharmaceuti.. Prabhudas Lilladhar

482.25 446.00 482.25
(9.96%) Target met Sell

Monthly Update - IPM grapple for normalized growth after COVID

IPM is struggling for growth above 10% even after MoM abating COVID concerns and with MRs, physician activities almost reaching pre-COVID level. We believe key reasons for growth below par are (i) subdued new prescription (Rx) leading to volume de-growth (ii) digital marketing yield going south and (iii) sustained lower demand of acute products. Cardiac and anti-diabetic growth takes a breather in Jan-21 at 8.8% and 5.3% after reporting double digit growth in most months during lockdown. While amongst top therapies Gastro and VMN reported double digit growth of 14%...

2021-02-16 Glenmark Pharmaceuti.. Prabhudas Lilladhar

482.25 446.00 482.25
(9.96%) Target met Sell

Q3FY21 Result Update - Core biz remains weak: Maintain Sell

ICHNOS Sciences fund raising to get further delayed. We reduce our earnings estimate by 1% for FY22/23E as we lower our growth projections for semi-regulated market. 3QFY21 earnings were in-line with our estimates led by growth in India formulations and cost rationalization. GNP is our top sell idea given 1) US derma portfolio (35% of US revenue) would lag growth due to competition 2) has thin US product pipeline with only 47 pending ANDAs plus guidance of 8-10 new launches in FY21E, 3) 60-65% of...

2021-02-15 Glenmark Pharmaceuti.. ICICI Securities Limited 490.65 635.00 490.65
(8.08%) Target met Buy

Glenmark Pharmaceuticals

US generics comprise ~30% of total revenues. So far, the company has received approval for 167 ANDAs while another 44 are pending approval, of which 22 are Para IV applications. However, Glenmarks derma portfolio is facing stiff pricing pressure in the US. Going ahead, traction from the newly commissioned US based Monroe facility will be the key determinant besides sustained product launches. We expect the US to grow at 4.5% CAGR in FY20-23E to | 3581 crore on the back of new launches....

2021-02-15 Glenmark Pharmaceuti.. Motilal Oswal

503.20 540.00 503.20
(5.39%) Target met Neutral

Better business mix, operating leverage drive earnings

Glenmark Pharma (GNP) delivered in-line sales for 3QFY21. However, earnings were better than expected, led by the Domestic Formulation (DF)/API segment and controlled opex. GNP is confident of sustaining the profitability over the next 1224M, led by a better outlook in DF/US/API and an ongoing cost rationalization exercise. We raise our EPS estimate for FY21/FY22/FY23 by 4%/8%/6%, factoring in a) new launches in DF/US, b) stable price erosion in the US base business, c) an improved outlook in the API segment, and d) benefits from higher operating...

2020-12-07 Glenmark Pharmaceuti.. Edelweiss 532.10 559.00 532.10
(-0.34%) Target met Buy 2020-11-27 Glenmark Pharmaceuti.. Geojit BNP Paribas

471.40 548.00 471.40
(12.49%) Target met Buy

GLENMARK PHARMACEUTICALS

Glenmark Pharma Ltd (GNP) is an India-based pharmaceutical company with commercial presence in more than 80 countries across the globe. GNP is primarily focused on generics, specialty and OTC businesses. The company has strong regional/country-specific presence in diabetes,...

2020-11-10 Glenmark Pharmaceuti.. Prabhudas Lilladhar

480.80 424.00 480.80
(10.30%) 20.05 Sell 2020-11-09 Glenmark Pharmaceuti.. ICICI Securities Limited

481.70 635.00 481.70
(10.09%) Target met Buy

Glenmark Pharmaceuticals

US generics comprise ~30% of total revenues. So far, the company has received approval for 165 ANDAs while another 47 are pending approval, of which 24 are Para IV applications. However, Glenmarks derma portfolio is facing stiff pricing pressure in the US. Going ahead, traction from the newly commissioned US based Monroe facility will be the key determinant besides sustained product launches. We expect the US to grow at 4.7% CAGR in FY20-23E to | 3602 crore on the back of new launches. Targeting specific therapies in IPM...

2020-11-09 Glenmark Pharmaceuti.. Motilal Oswal 481.70 495.00 481.70
(10.09%) Target met Neutral

Lower opex drives profitability

Glenmark Pharma (GNP) delivered better-than-expected earnings growth led by Domestic Formulation (DF), ROW, EU, and API segments. DF growth was partly aided by higher off-take of COVID-related medicine. Lower opex further supported better profitability for the quarter. We tweak our EPS estimate for FY21/FY22, factoring in a) better traction in DF, b) cost rationalization benefits, and c) continued pressure on the LATAM business. We also introduce FY23 estimates. We value GNP at 14x 12M forward earnings to arrive at Target Price of INR495. We believe earnings...

2020-08-20 Glenmark Pharmaceuti.. KRChoksey 492.05 576.00 492.05
(7.77%) Target met Buy

Glenmark

Muted growth in the core geographies of India & the US: Glenmark reported largely in-line topline in 1QFY21 (-2.7% from our estimates) though it was muted due to pandemic, which resulted in domestic market growth of mere 3.7% YoY (+2.0% QoQ, 33% of sales). As per 1Q data of IQVIA, company had a growth of 5.5% (vs 1.8% decline in IPM) in the domestic market and strengthened its market share in core therapies of Cardiac (to 4.73% in 1QFY21 from 4.57% in 1QFY20), Diabetes (1.84% from 1.62%) & Respiratory (5.16% from 4.82%) while derma segment saw decline in market share to 8.82% from 9.06% earlier. Domestic business was also supported by launch of FabiFlu (Favipiravir) to treat COVID-19. The US market with growth of 1.6% YoY...

2020-08-18 Glenmark Pharmaceuti.. Prabhudas Lilladhar

488.25 365.00 488.25
(8.61%) Sell

Q1FY21 Result Update - US derma continue to be drag for growth - SELL

1QFY21 earnings were mixed bag with revenue lower than our estimate however EBITDA, EBITDAM and PAT were higher due to lower SG&A; (operating leverage). We continue to maintain SELL and retain TP of Rs365(12x PE of FY22E) as its core business continues to witness headwinds that may impact growth and margin. GNP is our top sell idea as 1) US derma portfolio (35% of US revenue) continues to witnesses 15-20% price erosion, 2) has thin product pipeline for US market with guidance of 8-10 new launches...

2020-08-17 Glenmark Pharmaceuti.. Motilal Oswal

474.80 495.00 474.80
(11.69%) Target met Neutral

Cost savings drive profitability

17 August 2020 Despite reduced sales in India (DF)/the US/ROW/LATAM, Glenmark Pharma (GNP) delivered better-than-expected 1QFY21 performance led by product mix change and sharp reduction in other opex. We have raised our EPS estimate by 19%/14% for FY21/FY22E and raised our P/E multiple to 14x (from 12x earlier) to factor in (a) cost rationalization benefits, and (b) the gradually improving outlook for India and other emerging markets (EMs). Accordingly, we have arrived at a price target of INR495 on 12M forward earnings basis. While 17% earnings CAGR over FY20-22E should be better than the earnings decline over FY17-20, we are yet to see meaningful improvement in return ratios. Revenues grew 2.7% YoY to INR23.4b (v/s est. The YoY growth was driven by Europe and DF, partially offset by decline in RoW markets and LATAM sales. DF (34% of sales) revenue grew 3.7% YoY to INR7.8b. Europe revenue (12% of sales) grew ~13% YoY to INR2.

2020-08-17 Glenmark Pharmaceuti.. ICICI Securities Limited

 

480.65 560.00 480.65
(10.33%) Target met Buy

Glenmark Pharmaceuticals

US generics comprise ~30% of total revenues. So far, the company has received approval for 164 ANDAs while another 44 are pending approval, of which 24 are Para IV applications. However, Glenmarks derma portfolio is facing stiff pricing pressure in the US. Going ahead, traction from the newly commissioned US based Monroe facility will be the key determinant besides sustained product launches. We expect the US to grow at 5.2% CAGR in...

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