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India's Glenmark Pharma posts Q2 loss on exceptional legal costs

Reuters
·2-min read

HYDERABAD (Reuters) - India's generic drugmaker Glenmark Pharmaceuticals reported a loss in the second quarter, hurt by exceptional costs related to a legal settlement and higher expenses.

The company posted a consolidated net loss, from continuing operations, of 2.01 billion rupees ($24.14 million) for the three months ended Sept. 30, from a profit of 1.54 billion rupees a year ago.

Glenmark incurred an exceptional cost of 3.25 billion rupees, during the quarter, related to a legal case settlement with the U.S. Department of Justice, Antitrust Division and remediation costs at manufacturing sites in India and the United States.

Total expenses rose 8.7% to 30.08 billion rupees.

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The branded formulations drugmaker, which focuses on dermatology, oncology and respiratory medication, said total revenue from operations rose 6.3% to 32.07 billion rupees, helped by growth in Europe and domestic businesses.

The company, which made the popular Fabiflu medication widely used during the pandemic, said revenue from European business rose 58.4% to 6 billion rupees, while it dropped 1.9% to 7.39 billion rupees in key North America business.

Revenue from domestic business increased 2.8% to 11.22 billion rupees, with a 15.3% growth in the consumer care business.

India's generic drug makers, which draw a significant share of revenue from the crucial U.S. market, are recovering from the effects of eroding prices in the largest drug market in the world and are also gaining from new product launches.

The company, in September, said it would sell 75% of its stake in unit Glenmark Life Sciences to detergent maker Nirma for 56.52 billion rupees ($679.84 million) and use the proceeds to repay debt.

Glenmark Pharma's shares closed 0.8% lower ahead of the results on Friday.

Rival Zydus Lifesciences reported a better-than-expected jump in quarterly profit earlier this week, led by strong domestic and U.S. sales.

($1 = 83.2660 Indian rupees)

(Reporting by Rishika Sadam; editing by Eileen Soreng)