Please refer to important disclosures at the end of this report
Glenmark Pharmaceuticals Limited (GPL) is a global pharmaceutical company.
The Company is engaged in the development of new chemical entities (NCEs)
and new biological entities (NBEs). With the strong sales growth led by strong
market share gains in gCrestor, traction in recently launched products
(gDiclofenac, gLidocaine) and continued strong sales of gMupirocin. To furthe
scale-up in US base business, given approvals received over the past few months
are yet to be reflected fully along with momentum in niche ANDA approvals.
Along with gZetia upside would help in reducing Net debt by 6-8 billion in
coming quarters. GPL expects strong US growth led by ramp-up in recent
launches, gZetia in Dec’16, derma launches in FY18 & complex generics from
FY19. GPL is expecting RoW YoY growth to improve in the coming quarters given
lower Venezuela impact. Most competitors in the dermatology do not have the
India cost advantage which helps to drive margin and benefit the company.
With the relevant launches over the next 2 years to be mostly in dermatolog
space, but is expected that from FY19 one will see more launches in comple
generic space which all we be beneficial for the company in long run.
The company has reported a healthy Return on Equity (RoE) of 20%+ for the last
5 years. Hence Buy.
CMP `941
Stock Info
Beta 0.8
Bloomberg Code
Shareholding Pattern (%)
Promoters 46.5
MF / Banks / Indian Fls 8.5
FII / NRIs / OCBs 36.2
Indian Public / Others 8.9
Abs. (%) 3m 1yr 3yr
Sensex (7.9) 3.4 27.4
Glenmark Pharma 2.3 3.1 79.1
Reuters Code GLEN.BO
BSE Sensex 26,375
Nifty 8,104
Face Value (
Market Cap (
cr) 26,551
52 Week High / Low 993/672
Avg. Daily Volume 55,686
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Glenmark Pharmaceuticals
Others | Pharmaceuticals
December 20, 2016
Glenmark Pharmaceuticals | Pharmaceuticals
December 20, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement Glenmark Pharmaceuticals
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
: Reduce
-5% to -15%
< -15