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    Glenmark Pharma.

    GLENMARK
    Healthcare·17 Feb 2025
    Management Summary

    Glenmark Pharmaceuticals reported a strong Q3 FY25 with consolidated revenue growing 35.1% YoY, significantly boosted by a 300% growth in India formulations. Europe also showed robust growth, while North America remained challenging. The company is optimistic about future launches in the US respiratory segment and expects RYALTRIS sales to reach $80 million in FY25. Net debt was significantly reduced to INR 109 crores.

    Highlights

    5

    • Glenmark's consolidated revenue from operations was at INR33,876 million as against INR25,067 million in the corresponding quarter last year, recording an overall Y-o-Y growth of 35.1%.

    • Sales from the formulation business in India for the third quarter of FY '25 were at INR10,637 million as against INR2,658 million in the corresponding quarter last year, recording a growth of about 300%.

    • Glenmark's Europe operations revenue for the third quarter of FY '25 was at INR7,297 million as against INR6,357 million, recording a Y-o-Y growth of 14.8%.

    • RYALTRIS, this year, we will be close to about $80 million, second year of launch.

    • Net debt for the period ended December '24 was at INR109 crores.

    Concerns

    4

    • The reported growth for the ROW region during the quarter was impacted due to the adverse currency movements in some of the key markets.

    • Glenmark U.S. business continued to remain challenging due to lack of meaningful launches during the quarter.

    • In Q3, we've seen some slowdown in the respiratory space.

    • Diabetes, we've had some challenges in terms of stock levels for LIRAFIT.

    What Changed2

    vs Q4 FY25

    Guidance items9 → 7 (-2)Risks discussed6 → 4 (-2)
    Key financials

    Metrics

    6

    Periods

    2

    Headline

    5
    • Consolidated Revenue
      ₹3,387.6 Cr
      YoY+35.1%
    • R&D Expenditure
      ₹225 Cr
    • R&D % of Sales
      6.6%
    • Forex Gain
      ₹23 Cr
    • Net Debt
      ₹109 Cr

    9M

    1
    • Consolidated Revenue
      ₹10,065.5 Cr
      YoY+15%

    Segment breakdown

    Contribution to RevenueRevenue
    India Formulation Business31.4%—
    North America23.1%₹781.3 Cr
    Europe21.5%₹729.7 Cr
    ROW22.1%₹749.1 Cr
    India Consumer Care——
    Heatmap· 2 shared metrics

    Capital allocation

    4
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Net ₹109 crores

    M&A

    Envafolimab (from Jiangsu Alphamab and 3D Meds)

    Other · signed

    M&A

    WINLEVI (from Cosmo)

    Other · announced

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    India Business Revenue Growth
    9-10%
    		High
    Revenue
    US Respiratory Franchise Market Potential
    $600-700 million
    		Medium
    Revenue
    US 180-day Exclusivities Market Potential
    $800 million
    		Medium
    Revenue
    RYALTRIS Sales
    $80 million
    		High
    Revenue
    RYALTRIS Peak Sales
    $200-300 million
    		Medium
    R&D Spend
    IGI Investment from Glenmark
    last year
    		High
    Profitability
    EBITDA Margin Improvement
    1% to 1.5% improvement
    		High

    LIRAFIT Supply Normalization

    this quarter (Q4 FY25)
    Currentchallenges in terms of stock levels
    Targetfull supply

    Why it matters

    Crucial for India diabetes segment growth recovery and meeting overall India business guidance.

    But every month, we're getting better in terms of the supply of LIRAFIT. So I think LIRAFIT, once we come into full supply, which should be in the month of -- in this month or next month, in this quarter, then you'll see the diabetes growth coming back.

    How to verify

    key_financials.segment_breakdown[name='India Formulation Business'].metrics[label='Sales']

    Risks & concerns

    4
    RiskSeverity

    Adverse currency movements in ROW region

    The reported growth for the ROW region was impacted by adverse currency movements in some key markets. — Management acknowledged

    medium

    Challenging US business due to lack of meaningful launches

    Glenmark U.S. business continued to remain challenging due to lack of meaningful launches during the quarter, though an uptick is expected from FY26. — Management acknowledged

    medium

    LIRAFIT stock level challenges impacting diabetes growth

    Challenges with LIRAFIT stock levels have impacted diabetes growth, but supply is improving and growth is expected to return this quarter. — Management acknowledged

    low

    Uncertainty regarding US tariffs

    It's extremely hard to predict how US tariffs will play out, with some discussions being postponed. — Management acknowledged

    medium

    Q&A highlights

    8

    “Diabetes, we've had some challenges in terms of stock levels for LIRAFIT. But every month, we're getting better in terms of the supply of LIRAFIT. So I think LIRAFIT, once we come into full supply, which should be in the month of -- in this month or next month, in this quarter, then you'll see the diabetes growth coming back.”

    Management explained the temporary slowdown in diabetes growth due to LIRAFIT supply issues and expects recovery soon.

    asked by Damayanti Kerai

    2 min read6 chapters

    Detailed Narrative

    01

    Q3 FY25 Financial Performance Overview

    Glenmark Pharmaceuticals reported a consolidated revenue from operations of INR 33,876 million in Q3 FY25, marking a 35.1% YoY growth. For the first nine months of FY25, consolidated revenue reached INR 1,00,655 million, up 15% YoY. R&D expenditure for Q3 stood at INR 225 crores, representing 6.6% of sales, with an additional USD 13.8 million invested in IGI. The company also reported a forex gain of INR 23 crores and a net debt of INR 109 crores as of December 2024.

    02

    India Business & New Launches

    The India formulation business recorded a significant 300% YoY growth in Q3 FY25, reaching INR 10,637 million, contributing 31.4% to overall revenue. Glenmark outperformed the Indian pharmaceutical market, with secondary sales growing 9.6% in Q3 FY25 (vs. market growth of 7.2%). Key therapeutic areas like dermatology and cardiac performed well. The company launched LIRAFIT (biosimilar Liraglutide) and JABRYUS (Abrocitinib) and plans to launch two oncology products (Tislelizumab and Zanubrutinib) in partnership with BeiGene within the next 3-4 months.

    03

    North America Business & Monroe Plant

    The North America business saw a modest 1.4% YoY growth, with revenue at INR 7,813 million in Q3 FY25. The segment faced challenges due to a lack of meaningful launches but anticipates an uptick from FY26, driven by respiratory and injectable segments. Glenmark expects to launch respiratory ANDAs from H1 FY26, including Fluticasone 44 MDI, which is projected to have an exclusive position. The Monroe plant, critical for 25-30% of US revenues, is awaiting an FDA inspection, though the company continues to file products from it.

    04

    Europe & ROW Performance

    Europe operations delivered a strong 14.8% YoY growth, with revenue reaching INR 7,297 million in Q3 FY25, contributing 21.5% to total revenues. The branded business, particularly RYALTRIS and Salmex, sustained growth. The ROW region grew 3% YoY to INR 7,491 million, but growth was impacted by adverse currency movements. RYALTRIS continued its strong performance in Russia, Latin America, and Australia, with FY25 sales projected to reach $80 million and peak sales of $200-300 million over time.

    05

    Ichnos Glenmark Innovation (IGI) & Pipeline

    IGI's ISB 2001, a trispecific antibody for multiple myeloma, showed promising Phase 1 trial data with an 83% overall response rate. Glenmark has initiated partnering discussions post the ASH conference and aims to conclude a deal in calendar year 2025, expecting FY26 to be the last year Glenmark will need to fund IGI directly. The long-term goal for IGI is an IPO in the US. The company also has other innovative oncology molecules and out-licensed autoimmune assets.

    06

    Future Growth Drivers & Margin Outlook

    Management highlighted several key growth drivers, including the upcoming US respiratory launches (Fluticasone MDI, nasal sprays) with a potential market of $600-700 million by FY27, and three 180-day exclusivities in FY27-28 representing an $800 million market. The company expects a 1-1.5% year-on-year improvement in EBITDA margins, adjusted for currency impacts, and aims to meet its full-year top-line and EBITDA guidance.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.