Shares of Glenmark Pharmaceuticals Ltd. fell to a seven-year low today after its first-quarter profit more than halved on weakening overseas sales.
Profit in the June quarter fell nearly 53 percent year-on-year to Rs 109 crore, the drug maker said in an exchange filing. That came after sales fell in its key markets of Latin America and the U.S., which together contributed nearly 41 percent of the company's revenue as of March 31.
“There's significant pricing pressure in the dermatology and mupirocin portfolios, but we're getting approvals this quarter which should boost U.S. sales after hitting rock-bottom in Q1,” Glenn Saldanha, the company's chairman and managing director, told BloombergQuint in an interview.
“Currency (fluctuations) impacted our gross margins, otherwise the Ebitda margin is pretty much ahead of where we were in the same period last year,” he said. “The margin profile will improve given the new launches.”
Saldanha said he the company would pare its debt following the various initiatives that the drugmaker is currently working on.
On Wednesday, Glenmark shares fell 8.03 percent to Rs 383.50 apiece on the BSE while the benchmark Sensex gained 0.82 percent to end the day at 37,260.44 points.
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