The shares of leading pharmaceutical developers in APIs gained 4% to a 52-week high price of ₹787 apiece after the company signed an agreement with a Japanese pharmaceutical company to manufacture and supply API in the therapeutic area.
At 12:50 p.m, Glenmark Life Sciences Ltd shares were trading at ₹780.50 apiece, up 3.06 percent from the previous close price. The company has a market capitalization of ₹9,607 crores.
Glenmark Life Sciences Limited (GLS), announced signing a Master Supply Agreement (MSA) with a Japanese innovator pharmaceutical company with a global presence in Europe, the United States, and Asia.
Under the agreement, Glenmark Life Sciences will manufacture API in the therapeutic area of urinary anti-spasmodic, to supply to the global innovator. The company reported in its exchange filing.
The finished API formulation will be supplied to all major regulated markets such as the United States, Europe, and Japan. The estimated commercial value of this project is expected to be around $ 5 million.
Glenmark Life Sciences shares have gained 29 percent in the last six months and 93 percent in a year.
The company revenue has increased year on year by 17 percent from ₹509 crore in Q2FY23 to ₹595 crore in Q2FY24. Also during the same period, net profit jumped by 11 percent, from ₹107 crore to ₹119 crore.
The company generated free cash flow of ₹153.5 crores leading to Cash and Cash Equivalents as of 30th September 2023 at ₹ 443 crores.
Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals Ltd, is one of the leading developers and manufacturers of select high-value Active Pharmaceutical Ingredients. The company operates in Contract Development and manufacturing operations of specialty Pharmaceutical products.
Further, the company is a leading developer and manufacturer of select, high-value, non-commoditized, Active Pharmaceutical Ingredients (APIs) in chronic therapeutic areas.
In Q2FY24, gross margins increased by 120 basis points YoY to 54.1%, while EBITDA margins decreased by 120 basis points YoY to 29.0%, owing to greater labor expenses and improved gross margins.
Regulated markets contribution is at 80% of firm revenue in Q2FY24 driven by growth in the US, LATAM, Europe, and India. The company planned to add 208KL manufacturing capacity in FY24 at Ankleshwar, Gujarat.
Written by Omkar Chitnis
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