Glenmark’s revenues grew 13.9% YoY to Rs 3173.4 crore driven by 21.5% YoY growth in Europe to Rs 380.7 crore, 14.1% YoY growth in India to Rs 1006.9 crore and 24.3% YoY growth in RoW markets to Rs 417.8 crore. This was partially offset by YoY de-growth of 3% in the US to Rs 756.7 crore, YoY decline of 9% in LatAm market to Rs 117 crore and YoY de-growth of 5.3% in APIs to Rs 303.2 crore. EBITDA margins improved 282 bps YoY to 21.8% mainly due to lower employee and other expenditures being partially offset by lower gross margins. EBITDA grew 30.8% YoY to Rs 693.2 crore while adjusted PAT grew 70.5% YoY to Rs 400.3 crore. [Note: Glenmark incurred a one-time loss of Rs178.3 crore on account of impairment of certain intangible assets]

Glenmark continued to outperform IPM in Q3 while in consumer business Candid cream and La Shield delivered strong growth. The company witnessed healthy growth in both its key markets of Western Europe and Central Eastern Europe during the quarter while there was healthy growth in base business across geographies in RoW markets. Latin America market remained challenging due to the pandemic in Brazil. On the US front, the company received USFDA approval for NDA Ryaltris. Glenmark remains on track to meet key objectives for FY22 with 10-15% growth and steady EBITDA margins. We expect the US to grow on the back of new launches

Q3FY22 Earnings Conference Call highlights 

India

Non Covid base portfolio grew 16.5% compared to the non-Covid IPM growth of 11.7% during the quarter.

The company launched eight new products during the quarter. Among key launches, the company launched the first triple combination of Remogliflozin, Vildagliptin and Metformin in the diabetes segment and Vilor-F, only ultra Laba and ICS combination with once a day schedule for the treatment of COPD. Launched FabiSpray for the treatment of adult patients with Covid-19.

Candid Cream and La Shield, delivering strong robust growth, reported robust growth in the consumer care business.

USA

Total 13 ANDAs filed with USFDA in 9MFY22. The company also received USFDA approval for its first NDA product Rylatris in the US (Q1 launch, commercialization by Hikma). The company is on track to file 18-20 ANDAs in FY22 including four to five filings from Monroe.

Glenmark witnessing 7-8% price erosion in the US base business.

RCIS, Asia, MEA Region (RoW)

In Asia, secondary sales grew 22% YoY during the quarter led by positive momentum in key markets like Vietnam, Malaysia and the Philippines.

In Russia, as per IQVIA, revenues grew 20.8% for the quarter vis-à-vis 10.7% growth in the overall retail market.

Europe

Double-digit growth in markets like UK and Netherlands. Launched Tiotropium DPI in Germany, Denmark, and Sweden during the quarter – launched in seven markets so far. Signed nine contracts for in-licensing products in the region in 9MFY22.