Glenmark Pharma Q3 Results Review -India Business Re-Set Drags Earnings: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Glenmark Pharmaceuticals Ltd. delivered a miss on its Q3 FY24 earnings, largely due to the inventory reset in the domestic formulation business and an inferior show in the U.S. generics segment. The company has completed its remediation measures at Monroe and would be requesting the U.S. FDA for a re-inspection.We cut our FY24/FY25/FY26 estimates by 94%/4%/4% to factor in: the significant reduction in the domestic formulation business due to stock consolidation and inventory rationalisation, and a prolonged delay in abbreviated new drug application approvals due to regulatory issues. This is partly offset by:robust traction in the Europe business. We value Glenmark Pharma at 17 times 12 months forward earnings to arrive at our target price of Rs 820.Glenmark Pharma is implementing efforts to improve outlook in its core markets through:the new launches/operational efficiency in the DF segment,filing complex respiratory products in the US segment, and resolving regulatory issues at its manufacturing site. However, we reiterate our Neutral rating as the current valuation factors in the upside in the earnings..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Glenmark Pharma Q3 Results Review -India Business Re-Set Drags Earnings: Motilal Oswal

Work-in progress to address the U.S. FDA issues

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