India's Glenmark Pharma posts Q2 profit on strong demand for chronic drugs

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(Reuters) - Glenmark Pharmaceuticals reported a second-quarter profit on Thursday, helped by strong demand for its drugs that treat long-term illnesses.

The drugmaker reported a consolidated profit of 3.54 billion rupees (nearly $42 million) for the quarter ended Sept. 30, compared with a loss of 819.5 million rupees a year ago.

The company had a one-time charge of 3.25 billion rupees in the second quarter of last year, related to a legal case settlement as well as remediation costs at its manufacturing sites in India and the U.S.

Total revenue from operations rose 7% to 34.34 billion rupees during the quarter.

For further results highlights, click

KEY CONTEXT

Glenmark Pharma continued to benefit from its strong position in key chronic therapy areas, including respiratory and dermatology therapeutics, according to its latest annual report.

Drugmakers like Glenmark Pharma and its peers continue to benefit from strong domestic demand for their speciality drugs and those used for treating long-term illnesses.

The company's peer, Mankind Pharma, also beat second-quarter profit estimates due to strong demand for its drugs that treat chronic illnesses, such as diabetes and cardiovascular diseases.

PEER COMPARISON

Estimates (next Analysts' sentiment

12 months)

RIC PE EV/EB Revenue Profit Mean # of Stock to Div

ITDA growth growth rating analys price yield

(%) (%) * ts target** (%)

Glenmark 27.57 15.76 12.89 175.73 Buy 10 1.02 0.15

Pharmaceuticals

Ltd

Mankind Pharma 44.71 27.24 20.55 13.99 Buy 15 0.95 NULL

Ltd

Torrent 44.86 25.13 12.32 27.73 Buy 27 0.90 0.89

Pharmaceuticals

Ltd

Sun 34.63 25.59 9.77 14.80 Buy 32 0.91 0.75

Pharmaceutical

Industries Ltd

* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JULY TO SEPTEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 84.4300 Indian rupees

(Reporting by Kashish Tandon in Bengaluru; Editing by Abinaya Vijayaraghavan)