India’s Glenmark Pharma posts loss for Q3 as remediation cost weighs

By Thomson Reuters Feb 14, 2024 | 9:25 AM

HYDERABAD (Reuters) – India’s generic drugmaker Glenmark Pharmaceuticals posted a quarterly loss for the second time straight, hurt by higher expenses and costs related to remediation of its manufacturing sites.

The company’s consolidated net loss came in at 3.51 billion rupees ($42.28 million) for the third quarter ended Dec. 31, compared with 2.73 billion rupees reported a year earlier.

Total expenses during the quarter rose 4.2% to 29.97 billion rupees.

The company also incurred an exceptional charge of 767.24 million rupees, primarily related to the remediation cost of its manufacturing sites in India and the U.S. and an ongoing legal settlement with the U.S. Department of Justice.

Glenmark, which makes dermatology, oncology and respiratory branded and generic medication, said its total revenue from operations fell 19% to 25.17 billion rupees.

Revenue from India business fell 75.6% to 2.62 billion rupees, as the company ramped up its efforts to change the distribution model and launch anti‐counterfeit packaging.

“Glenmark is going through a transitionary phase on account of the divestment of Glenmark Life Sciences,” Managing Director Glen Saldanha said.

Its revenue from North America, the biggest contributor, fell 8.8% in the quarter, hurt by the impact of lowered drug prices in the U.S. amid stiff competition.

However, its Europe business revenue rose 28.9% to 6.36 billion rupees, compared with a year earlier.

Consumer care business sales, which includes flagship brands such as Candid anti-fungal powder, grew 18% to 482.4 million rupees, said Glenmark – the maker of Fabiflu medicine, which was widely used during the pandemic.

Shares of the company closed 4.2% lower ahead of the results.

($1 = 83.0110 Indian rupees)

(Reporting by Rishika Sadam; Editing by Shweta Agarwal)