Release Date: February 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Glenmark Pharmaceuticals Ltd (BOM:532296, Financial) reported a significant year-over-year revenue growth of 35.1% for Q3 FY25, with consolidated revenue reaching INR33,876 million.
- The India formulation business saw a remarkable growth of about 300% in Q3 FY25, contributing 31.4% to the overall revenue.
- Glenmark's dermatology and cardiac segments performed well, with the company ranking second in dermatology and fifth in the cardiac segment in India.
- The company launched several key products, including Lirafit, the first biosimilar of liraglutide, and JABRYUS in partnership with Pfizer, which have been well-received in the market.
- Glenmark's ROW region, including Russia and Latin America, showed strong growth in dermatology and respiratory portfolios, despite adverse currency movements.
Negative Points
- The North America business recorded a modest year-over-year growth of 1.4% in Q3 FY25, with challenges due to a lack of meaningful launches.
- Glenmark's US business continues to face difficulties, particularly with the Monroe plant awaiting FDA inspection, impacting the launch of complex injectables.
- The company's diabetes segment in India faced challenges with stock levels for Lirafit, affecting growth in this therapeutic area.
- Currency fluctuations negatively impacted reported growth in the ROW region, particularly in emerging markets like Latin America and South Africa.
- The Indore plant, which contributes 25-30% of US revenues, received observations from the FDA, though the company is confident in addressing them.
Q & A Highlights
Q: Can you explain the performance of Glenmark's diabetes portfolio in India, which seems weaker than the market?
A: Glenn Saldanha, Executive Chairman and Managing Director, explained that while the India business overall is performing well, the diabetes segment faced challenges due to stock levels for Lirafit. However, supply issues are being resolved, and growth is expected to return. The company is also planning to launch additional GLP-1 agonists, which should enhance diabetes sales.
Q: What is the status of the Monroe plant in the US, and how does it impact Glenmark's business?
A: Glenn Saldanha stated that the Monroe plant is awaiting FDA inspection, but the company continues to produce batches and file products, primarily complex injectables. The plant is expected to play a significant role in the future, especially given geopolitical considerations.
Q: Can you provide an update on the ISB-2001 asset and its potential impact on Glenmark?
A: Glenn Saldanha highlighted that ISB-2001 is a promising asset with transformational potential for Glenmark and the multiple myeloma space. Partnering discussions are underway, and the company aims to conclude a partnership by the end of the year. The trial continues with plans for dose expansion.
Q: How is Glenmark's respiratory business in the US progressing, and what are the expectations for future launches?
A: Glenn Saldanha outlined a strong pipeline for the respiratory segment, including major launches like fluticasone 44 MDI and nasal spray in FY26. The company anticipates significant market potential from these products, with a focus on expanding its respiratory portfolio.
Q: What are Glenmark's expectations for RYALTRIS sales, and how is it performing globally?
A: Glenn Saldanha reported that RYALTRIS is expected to achieve around $80 million in sales this year, with further launches planned in major markets like Brazil and China. The product is on track to reach peak sales of $200 million to $300 million over time.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
