India’s Glenmark Pharma misses profit estimates on weak North America sales

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(Reuters) – India’s Glenmark Pharmaceuticals reported third-quarter profit below estimates on Friday due to bleak U.S. demand for its long-term illness drugs.

The drugmaker reported a consolidated net profit of 3.48 billion rupees ($40.15 million) for the quarter ended December 31, compared with analysts’ estimate of 3.64 billion rupees, as per data compiled by LSEG.

The company reported a loss of 3.51 billion rupees in the comparable quarter last year, hurt by sluggish sales in India and charges related to a legal case settlement in the United States.

Net sales rose 34% to 33.02 billion rupees in the quarter, aided by India sales.

For further results highlights, click (Full Story).

KEY CONTEXT

The U.S. is a major revenue source for India’s generic drugmakers, but intense competition in North America’s drug market has pressured their margins.

Analysts had flagged that Glenmark’s growth in North America has been hampered by price erosion and lack of significant product launches.

Revenue from its U.S. markets grew 1.4% during the quarter, compared with a 5.5% growth in the previous quarter.

However, the company said it anticipates business growth from the financial year 2026 onward, driven by potential launches in the respiratory and injectable segments.

PEER COMPARISON

Valuation (next 12 Estimates (next 12 Analysts’ sentiment

months) months)

RIC PE EV/EBIT Price Revenue Profit Mean # of Stock to Div yield

DA /Sale growth(%) growth(%) rating* analys price (%)

s ts target**

Glenmark 23.23 13.48 11.27 48.52 Buy 10 0.81 0.18

Pharmaceuticals

Mankind Pharma 43.55 24.15 6.73 21.67 13.68 Buy 15 0.86

Torrent 41.98 24.43 6.84 12.32 29.91 Hold 26 0.86 1.05

Pharmaceuticals

Sun 31.10 23.32 6.26 10.27 13.68 Buy 33 0.83 0.92

Pharmaceutical

Industries

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT

OCTOBER TO DECEMBER STOCK PERFORMANCE

— All data from LSEG

— $1 = 86.6740 Indian rupees

(Reporting by Ananta Agarwal and Ashna Britto in Bengaluru; Editing by Vijay Kishore)