Pharma giant Glenmark Pharmaceuticals has outlined its roadmap for fiscal year 2025, focusing on growth and expanded global market presence.
Glenmark has earmarked Rs 700 crores for consolidated capital expenditures (CAPEX) to bolster its operational infrastructure. This allocation will be used to augment the company’s capabilities to meet growing demand efficiently and sustain long-term growth, the management told Business Today.
The company aims to achieve consolidated revenue between Rs 13,500 crores and Rs 14,000 crores, signalling a push towards market leadership and financial strength, the company said.
To meet this revenue target, officials stated that Glenmark plans to invest significantly in research and development (R&D), allocating 7-7.25% of its total sales to R&D efforts. "This investment highlights the company's dedication to innovation and developing pharmaceutical solutions. It is expected to enhance Glenmark’s competitive edge, fostering the discovery of new therapies and expanding its product portfolio," the company stated.
Operationally, Glenmark is targeting an EBITDA margin of approximately 19%, reflecting an emphasis on efficiency and profitability. The company further aims for a double-digit profit after tax (PAT) margin, focusing on sustainable financial performance to provide value to stakeholders while maintaining competitiveness in the market, according to the company's management.
Glenmark’s formulation business remains integral to its global strategy, covering branded, generics, and over-the-counter (OTC) products in therapeutic areas like dermatology, respiratory, oncology, cardiac, diabetes, and oral contraceptives. This diversified portfolio continues to drive success across international markets, said the management.
Glenmark Pharmaceuticals on Friday released its financial results for the fourth quarter ending 31 March 2024, showing growth across various markets except for North America. For Q4 FY 2023-24, Glenmark’s consolidated revenue increased to Rs 3,063 crores, up by 2.1% from Rs 3,000.5 crores year-on-year. The company reported a rise in EBITDA to Rs 504.3 crores, a 26.7% growth from the previous year’s Rs 397.9 crores, with an EBITDA margin of 16.5%.
Breaking down the regional performance, India's business surged by 12.9% to Rs 939.1 crores, the Rest of the World (RoW) segment grew by 9.7% to Rs 752.8 crores, Europe saw a marginal uptick of 0.7% to Rs 611.8 crores, and North America experienced a 12.4% decline in revenue to Rs 755.7 crores.
For the fiscal year ending 31 March 2024, Glenmark’s consolidated revenue increased moderately to Rs 11,813.1 crores, a 2% rise from Rs 11,583.2 crores in the previous year. However, EBITDA decreased to Rs 1,195.3 crores due to a one-time sales impact in India during Q3 FY 2023-24, resulting in an EBITDA margin of 10.1%. The lower sales in Q3 were mainly due to a one‐time impact on the company’s India business. During Q3 FY 2023-24, the company implemented changes in its overall distribution model of its India business through the consolidation of stock points and the rationalisation of channel inventories. This led to a temporary dip in sales for the India business during the quarter. However, going forward, this will help improve the company’s operating margins and overall working capital. These changes in the India distribution system will also enable the company to accelerate the roll-out of its anti-counterfeit packaging across the country, the company said.
"This past year has been a period of significant transition and transformation for Glenmark. We successfully divested a majority stake in Glenmark Life Sciences, concluding the year in a strong net cash positive position. Our branded markets continued to deliver robust growth, particularly in Europe and other key international markets. While we encountered some headwinds in our US business, we remain optimistic about our ability to regain our growth trajectory in the coming year," said Glenn Saldanha, Chairman and Managing Director of Glenmark Pharmaceuticals Ltd.
He further added, "We have made significant progress in advancing our strategy of building global brands. The successful commercialisation of Ryaltris, our novel allergic rhinitis treatment, in 34 markets worldwide is consistently gaining market share in these geographies. Additionally, we have also in-licensed two specialty products – Winlevi and Envafolimab. As we continue to move up the value chain and enhance our product mix, we are confident of achieving significant improvement in our operating margins going forward."
Winlevi is a cream used to treat acne, while Envafolimab is an injection used to help treat certain types of cancer.