Glenmark India expects business to rebound in Q4, says Glenn Saldanha

Glenmark Pharmaceuticals’ India business is set to make a comeback in the next quarter, according to the company’s Chairman and Managing Director Glenn Saldanha. This comes after a one-time restructuring to address long-standing distribution channel inefficiencies. Saldanha expressed confidence that the India business will return to normalcy in Q4, reaching approximately Rs 1,000 crore in sales.

During the third quarter ended December 31, 2023, Glenmark’s sales from formulation business in India experienced a substantial decline, standing at Rs 262 crore compared to Rs 1,074 crore in the previous corresponding quarter. This was attributed to the consolidation of stock points and rationalization of channel inventories, leading to temporary sales dip in the India business.

Despite the impact on India business revenue, the company’s secondary sales growth remains strong, according to Saldanha. Glenmark’s consolidated revenue for the quarter was down 16 per cent compared to the same period last year, largely due to the one-time impact. However, excluding this impact, the consolidated revenue would have seen a growth of approximately 9 per cent over the previous year.

The company is also going through a transitionary phase following the divestment of Glenmark Life Sciences. Saldanha assured analysts that despite the impact, the company’s Europe and RoW markets have maintained robust growth trajectories, and the US business is anticipated to see a resurgence from Q4.

Furthermore, Glenmark’s alliance with its global biotech subsidiary, Ichnos Sciences Inc., is expected to drive future innovation efforts in the oncology products segment. The company’s revenue in North America witnessed a decline, while Europe and RoW markets experienced growth. External sales for Glenmark Life Sciences also saw a significant increase compared to the previous year.