Generic injectables maker Gland Pharma reported a 17% fall in third-quarter profit on Wednesday, as higher employee expenses eclipsed strong sales in its core markets.
The company, majority owned by China’s Shanghai Fosun Pharmaceutical Group, said its consolidated net profit fell to Rs 1.92 billion ($23 million) in the quarter, from Rs 2.32 billion a year earlier.
Gland Pharma’s total expenses jumped nearly 89% to Rs 12.99 billion, dragged by a more than three-fold climb in its employee benefits costs.
This more than offset a 65% rise in its revenue from operations to Rs 15.45 billion, which was driven by higher sales after the acquisition of the French pharmaceutical group Cenexi in January 2023. Excluding Cenexi, revenue rose 17% to Rs 11.01 billion.
India’s generic drugmakers continue to benefit from new product launches and easing price competition in the United States, from where they generate a majority of their revenue.
Cipla, Dr Reddy’s and Sun Pharma also beat their third-quarter profit estimates on strong U.S. sales.
Gland Pharma’s U.S. sales climbed 41% to Rs 8.22 billion in the quarter, while sales in Europe shot up 435% to Rs 3.25 billion. The two regions contributed 74% of total revenue.
Sales in the Hyderabad-based company’s other core markets, such as Canada, Australia and New Zealand, also more than doubled to Rs 382 million.