Glenmark Pharmaceuticals’ (GNP) Q3FY17 was driven by the 180 days exclusivity for gZetia that may have contributed $70 million. However, rest of business was sluggish, with India hit by demonetisation and halt of sales in Venezuela.
Revenue, EBITDA and PAT grew 41%, 106% and 143% y-o-y, respectively. Despite Zetia, both net and gross debt spurted by R6.2 billion/15 billion during 9mFY17. No apparent benefits of re-financing INR debt with FCCBs and bonds worth $400 million are yet visible, with flat interest expense q-o-q.
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GNP has a strong near-term generic pipeline, which includes Zyvox ($500 million), Renvela/ Renagel ($1,400 million) and Welchol ($800 million) in FY17/18. However, launch of these products at right time is vital unlike delays in Nitrostat or Ortho Tricyclen Lo. Maintain ‘hold’. Sales jumped 41% y-o-y led by US, which grew by $68 million sequentially (+98% y-o-y in CC), riding FTF sales for gZetia. India revenue growth (+6% y-o-y) was subdued because of demonetisation. While Q2FY17 had some booked sales from Venezuela, there was nothing in Q3FY17. R&D inched up to 11% of sales (+17% q-o-q).