Company Update : Glenmark Pharmaceuticals Ltd by Motilal Oswal Financial Services Ltd
Weak set of numbers, adjusted for one-time income
* GNP sales decreased 30.8% YoY to INR23.8b (our est. INR35.2b). The reported revenue of INR60b comprised one-time income from Abbvie amounting to INR36.7b (USD525m less one-time charge of USD93m). Adjusting for the same, revenue for the quarter was INR23.8b.
* Domestic formulation sales decreased by 87.1% YoY to INR1.6b (7% of revenue). GST transition led to a one-time reduction in distributor inventory levels, postponement of orders, and high impact of freight and reverse logistics. Secondary sales grew 10.8% YoY for 2QFY26.
* NA sales grew 7.4%YoY to INR8b (33% of revenue; USD89m down 8% YoY in CC terms). Emerging Markets sales decreased 6.5% YoY to INR6.5b (28% of revenue). Europe revenue grew by 8.5% YoY to INR7.5b (31% of revenue).
* Adj. for one-time income from Abbvie, gross margin contracted 2200bp YoY to 46.8%. A sharp reduction in India sales and lower EM sales impacted gross margin.
* GNP faced an operational loss of INR8.7b due to lower GM and higher opex (other expenses up 1,600bp YoY and employee costs up 1,400bp YoY as a % of sales).
* GNP had other income of INR2b. Considering Abbvie income, GNP reported a PAT of INR6.1b. Adj. for Abbvie income, GNP witnessed a net loss of INR9b for the quarter.
Other key highlights
* Growth in India was impacted by a one-time reduction in distributor inventory levels/postponement of orders and higher freight costs.
* Other exceptional items comprise: a) provision on certain inventories of INR5.9b post-GST 2.0, b) change in inventory model, receivable, and other current assets (INR4.9b), and c) impairment of INR2b.
* As of Sep’25, marketing applications for RYALTRIS have been submitted in more than 90 countries worldwide, and the product has been commercialized in 49 markets.
* Organon, Glenmark’s partner in Thailand, is preparing to launch RYALTRIS® in 4QFY26.
* Glenmark and its partner Grand Pharmaceuticals (China) are preparing to launch RYALTRIS® in China by 1HFY27.
* Glenmark has filed QiNHAYO Marketing Authorization Applications in 14 markets to date; the first commercial launch is expected in FY26.
* Glenmark entered into an exclusive license and collaboration agreement with Hengrui Pharma for Trastuzumab Rezetecan (SHR-A1811), a nextgeneration HER2-targeting antibody drug conjugate (ADC).
* The company is expecting approval of Winlevi in other European markets and is targeting to initiate the commercial launch in licensed EU territories by the end of FY26.
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