Glenmark Pharmaceuticals reported a sharp fall in its consolidated profit for the July to September quarter, with exceptional items weighing on the bottom line. The drug maker announced the figures on Thursday in a regulatory filing made after market hours.
Consolidated profit after tax came in at Rs 263.83 crore for the quarter, down 56.78 per cent. In the same quarter a year earlier, the company had earned Rs 610.43 crore.
Revenue also shrank. Total revenue from operations for the second quarter of the current fiscal stood at Rs 4,247.32 crore, compared with Rs 6,046.87 crore a year ago.
Costs came down too. Total expenses for the quarter were Rs 3,627.70 crore, against Rs 3,894.98 crore in the same period last year. Lower spending did not offset the drop in sales, which is why profit fell so steeply.
Settlement with Humana
During the quarter, Glenmark Pharmaceuticals USA, a subsidiary of the company, agreed to settle a dispute with Humana Inc for USD 15 million. The company said the deal does not mean it accepts any wrongdoing. Glenmark continues to deny all the allegations made against it, and the settlement was not based on any admission of liability or illegality.
Management outlook
Glenn Saldanha, Chairman and Managing Director of Glenmark Pharmaceuticals, said the company remains on track to meet its FY27 guidance. He pointed to steady growth in India, a stronger recovery in North America supported by several new product launches, and solid performance across emerging markets.
He also highlighted RYALTRIS, which has recently been launched in Brazil as it expands further abroad. Saldanha called the Brazil launch an important milestone.
On the innovation front, he said the company’s partnered oncology pipeline is moving closer to commercial sale, with the first launch expected by the end of FY27.
Share price reaction
The stock ended the day lower. Shares of Glenmark Pharmaceuticals closed 0.65 per cent down at Rs 2,485.5 apiece on the BSE.
Investors will now look to the company’s progress on its North American recovery and upcoming launches to judge whether earnings can rebound in the coming quarters.