Add Glenmark Pharmaceuticals Ltd for the Target Rs.2,590 by Choice Institutional Equities
Key Conference Call Highlights
India Business
* Highlighted that GNP was the second fastest-growing company among the top 15 pharma players in FY26, with growth running at nearly 1.5x the IPM growth rate.
* Core therapies remained key growth drivers, with GNP retaining a strong position in dermatology (#2), respiratory (#3) and cardiac (#4) segments in India.
* Oncology gained significant traction this year, supported by launches of Tevimbra and Brukinsa. The management indicated that both the products are projected to become meaningful growth contributors in the next 2–3 years.
* Launched Glipiq (Semaglutide) in Q4 and the company anticipates the diabetes franchise to return to growth from FY27E.
* India is expected to sustain 15%+ growth, supported by oncology, respiratory, cardiovascular and diabetes portfolio.
North America Business
* Launched 4 products in Q4 and 13 products in FY26, expanding its portfolio across oral solids, injectables and respiratory therapies.
* The management indicated that supply chain disruption and delayed commercialisation of Fluticasone products limited Q4 sales contribution, with benefits expected to flow through meaningfully in FY27E.
* Ryaltris is now being commercialised directly in the US. The company believes its team can drive better execution and outcome.
* Two sole FTF products are anticipated to be launched in H2FY27E and is targeting to launch 2–3 Respiratory products in FY27E.
* The management forecasts FY27 growth in the US to improve materially, supported by Fluticasone launches, additional respiratory approvals and injectable portfolio expansion.
Europe Business
* Central and Eastern Europe markets delivered a double-digit growth, while Germany, the Netherlands and Italy were key contributors in Western Europe.
* The management plans to strengthen the respiratory portfolio further through 2–3 additional product launches in Europe in FY27E.
* Winlevi was launched in the UK and has gained good early traction; GNP has also received marketing authorisation approval and plans to roll out Winlevi across its licensed European territories in FY27E.
* High single digit growth expected, driven by respiratory launches, with an incremental contribution from Ryaltris and Winlevi.
Rest of the World (RoW) Business
* Ryaltris was launched in China and Thailand in Q4; the management projects a meaningful growth uptick from these large markets, while Brazil launch is planned in FY27E.
Outlook
* The company has guided for FY27E revenue of INR 170–180 Bn and EBITDA margin of 21–22%.
* Ryaltris remains a key global growth driver, having crossed USD 100 Mn in sales and commercialised in 55 markets. The company anticipates launches in another 8–10 markets.
* The innovative oncology pipeline is projected to be a major longterm driver, with Aumolertinib, Trastuzumab Rezetecan and Envafolimab slated for launches in India and emerging markets.
* Working capital has been guided for ~115 days.
* R&D spend is forecast to be at 7–8% of sales range in FY27E.
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SEBI Registration no.: INZ 000160131
