Glenmark Pharmaceuticals (GLENMARK) Q4 06/07 earnings summary

Executive summary

• FY07 consolidated revenue rose 65.2% to Rs 12,515.34 Mn; net profit increased 252% to Rs 3,100.60 Mn, supported by broad-based business growth and out-licensing receipts.

• Global reach expanded to more than 85 countries; strategic moves included entry into Europe, biologics pipeline expansion and commercial growth in the US and Latin America.

Financial highlights

• Consolidated revenue was Rs 12,515.34 Mn versus Rs 7,575.89 Mn in FY06; business revenue excluding out-licensing was Rs 11,120.22 Mn, up 52.1%.

• Consolidated net profit was Rs 3,100.60 Mn versus Rs 879.76 Mn; profit before tax was Rs 3,613.18 Mn versus Rs 1,120.72 Mn.

• Operating profit before interest, depreciation and tax reached Rs 4,419.85 Mn, up 195%; consolidated gross revenue rose 65.2%.

• Out-licensing revenue rose to Rs 1,395.12 Mn from Rs 265.63 Mn; first Merck payment for GRC 8200 was USD 31 Mn.

Outlook and guidance

• FY08 consolidated revenue target: Rs 17,308.89 Mn (USD 419 Mn); net profit target: Rs 5,163.75 Mn (USD 125 Mn).

• R&D aims: conclude two licensing collaborations; progress GRC 8200 and GRC 3886 through Phase II; advance GRC 6211 into Phase II and three other candidates into Phase I.

• US targets include more than 25 marketed products and 15–20 solid-dose ANDA filings; API target is 12–14 US DMFs in FY08.

• Plans include 1–2 European branded-generic acquisitions and evaluation of acquisitions in high-potential semi-regulated markets.