Glenmark share price hits 52-week low, tanks 9% post Q4 FY18 results
Glenmark said results are not comparable to the corresponding quarter of the previous year, as the company through its partner Endo had launched Ezetimibe in the US in December 2016 and was entitled to an exclusivity on the product.
Glenmark share price tanked 9 per cent on Wednesday after the pharma major reported a consolidated net profit of Rs 151.62 crore for the fourth quarter ended March 2018. The company had posted a net profit of Rs 183.76 crore for the same period of the previous fiscal year.
Reacting to its earnings, the stock slipped as much as 8.92 per cent to hits its 52-week low of Rs 483.60 on the BSE. The stock pared losses to trade at Rs 517.50, down 2.5 per cent at 10:15 am.
Glenmark pharma's revenues stood at Rs 2,279.81 crore for the fourth quarter ended March 31, 2018. It was at Rs 2,457.18 crore in January-March period of 2016-17, Glenmark said in a regulatory filing.
The Mumbai-based firm said results are not comparable to the corresponding quarter of the previous year, as the company through its partner Endo had launched Ezetimibe in the US in December 2016 and was entitled to an exclusivity on the product.
Consolidated net profit for the year stood at Rs 803.87 crore. It stood at Rs 1,108.75 crore in 2016-17. Revenues stood at Rs 9,103.07 crore for the year while the same was at Rs 9,185.68 crore in 2016-17.
"While 2017-18 was a challenging year mainly on account of pricing pressure in the US, our other key markets like Europe and India performed well on the back of new product launches," Glenmark Pharmaceuticals Chairman and MD Glenn Saldanha said.
Even though the company expects pricing pressure to persist, it is glad that current fiscal has started on a positive note with approvals for some interesting products in the US, he added.
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The company's board recommended a dividend of Rs 2 per share of face value of Re 1 each for 2017-18.
In a separate filing, the drug maker said its board has approved the draft share purchase agreement to acquire 100 per cent stake in Pune-based Zorg Laboratories Pvt Ltd for an aggregate consideration of Rs 5 lakh.
It is engaged in the business of dealing, distributing and marketing of all types of pharmaceutical and chemical products.