Glenmark Pharma Q3 Results Review— Regulatory Compliance Critical For Turnaround In U.S. Says ICICI Securities

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ICICI Securities Report

Glenmark Pharmaceuticals Ltd.’s Q3 FY25 result was dragged by weak show in India, US and RoW markets. Management is hopeful of growing its US biz over FY26-28 led by gFlovent launch (H1 FY26) and 3 FTF product launches over FY27-28.

Post instances of recall, U.S. Food and Drug Administration recently inspected Indore plant and issued five observations while Monroe is yet to be reinspected. Revival in US hinges on its ability to adhere with regulatory standards and timely approval of gFlovent and other assets. India biz revenue run-rate slowed down in Q3 FY25 and management now anticipates sales from India to grow at 9-10%.

Management maintains FY25 revenue guidance of Rs 135–140 billion and margin of ~19% (after adjusting for currency headwinds). We cut FY25/26E EPS by 5-6% to factor in currency headwinds in RoW. Maintain Reduce with lower target price of Rs 1,265, based on 22x FY26E EPS.

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