MIRA INFORM REPORT
|
Report
Date : |
13.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
GLENMARK
PHARMACEUTICALS LIMITED |
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|
|
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Registered
Office : |
B/2,
Mahalaxmi Chambers, 22, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
18.11.1977 |
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Com.
Reg. No.: |
11-19982 |
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CIN
No.: [Company
Identification No.] |
L24299MH1977PLC019982 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
MUMG07883B |
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Legal
Form : |
Public Limited Liability company. The company’s shares are
listed on the Stock Exchanges. |
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Line
of Business : |
Manufacturing and Marketing of Pharmaceutical Products |
RATING & COMMENTS
|
MIRA’s
Rating : |
A |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial
& operational base are regarded healthy. General unfavourable factors
will not cause fatal effect. Satisfactory capability for payment of interest
and principal sums |
Fairly Large |
|
Maximum
Credit Limit : |
USD
12500000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well established and reputed company. It is one of the fastest growing companies
in pharmaceutical industry. Available
information indicates high financial responsibility of the company. Trade relations are fair. Payments are always correct and as per
commitments. The company can be considered good for business dealings
at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
B/2,
Mahalaxmi Chambers, 22, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra,
India |
|
Tel.
No.: |
91-22-24964893/24964894/24964895/24964896 |
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Fax
No.: |
91-22-24932648 |
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E-Mail
: |
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Website
: |
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Divisional
Office : |
Located
at :- Mumbai, Delhi, Ghaziabad, Chennai, Bangalore, Hyderabad,
Kolkata, Vadodara and Patna |
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|
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Corporate
Office : |
801-813,
8th Floor, Mahalaxmi Chambers, 22m Bhulabhai Desai Road, Mumbai -
400026, Maharashtra, India |
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Tel.
No.: |
91-22-24964893 / 94/ 95/ 96/99 |
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Fax
No.: |
91-22-24932648/24919652 |
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Factory
1 : |
˜
E –
37, MIDC Industrial Area, D-Road, Satpur, Nasik – 422 007, Maharashtra ˜
Plot
No. A-80, MIDC Area, Kurkumbh, Daund, Pune – 413 802, Maharashtra ˜
3109-C,
GIDC Industrial Estate, Ankleshwar-393002, Bharuch, Gujarat, India ˜
Plot
No. 163-165/170-172, Chandramouli Industrial Estate, Mohol, Mohal Bazarpeth, Sholapur, Maharashtra –
413213 ˜
Plot
No. 7, Colvale Industrial Estate, Bardez, Goa ˜
Village
Kishanpura, Baddi Nalagarh Road, TEhsil Nalagarh, District Solan – 174101,
Himachal Pradesh |
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R
& D Centers : |
˜
Plot
No. C-152, MIDC Sinnar Industrial Area, Malegaon, Nasik District - 421 103,
Maharashtra ˜
Plot
No. A-607, TTC Industrial Area, MIDC, Mahape, Vashi, Navi Mumbai - 400 705,
Maharashtra |
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Branches
: |
˜
215/216,
Adhyaru Industrial Estate, Sun Mill Compounds, Lower Parel, Mumbai – 400 013,
Maharashtra Tel. No. : 91-22-24982172 ˜
No.
2, Maharaja Surya Road, Alwarpet, Chennai – 600 018, Tamilnadu ˜
Plot
No. 39, Vasavinagar, Kharkana Main Road, Secunderabad – 500 015, Andhra
Pradesh ˜
13-14-15,
Bhargava Plaza, 4th N-Block, Rajaji Nagar, Dr. Rajkumar Road,
Bangalore – 560 010, Karnataka ˜
10/58,
Kirth Nagar Industrial Area, New Delhi – 110 015 ˜
510,
Commercial Point, 79, Lenin Sarani, Kolkata – 700 013, West Bengal Tel. No. : 91-33-22449668 / 22467318 ˜
IBF
Warehousing Complex, Meerut Road, Ghaziabad – 201 001, Uttar Pradesh ˜
817-819,
Sidharth Complex, R. C. Dutt Road, Alkapuri, Vadodara – 390 007, Gujarat Tel.
No. : 91-126-2337857 / 2342359 |
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Overseas
Office : |
v
Glenmark
Pharmaceutica LDA Lote 4 – 2 – DT, Qta Do Meio, Rua Combatentes Do Ultramar, 2675
Odivelas, Portugal v
Glenmark
Pharmaceuticals (Canada) Limited 2798, Thamesgate Dr., Unit 4, Mississauga, Ontario, Canada L4T 1T9 |
DIRECTORS
|
Name |
Mr. Gracias Saldanha |
|
Designation |
Chairman |
|
Age |
66 years |
|
Address |
Flat No.2, Windemere Cooperative Housing Society
Limited, 236-A, Byramji Jeejibhoy Road, Bandra (West), Mumbai - 400 050,
Maharashtra |
|
Qualification |
M.Sc., DBM |
|
Experience
|
40 years |
|
Date
of Employment |
1st December, 1977 |
|
Previous
Employment |
Aristo Pharmaceuticals Private Limited |
|
Other
Directorships |
Glenmark Exports Limited, Glenmark Research Laboratories Private Limited, Glenmark Finlease Private Limited |
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|
|
|
Name |
Mrs. B. E. Saldanha |
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Designation |
Director – Exports |
|
Age |
64 years |
|
Address |
Flat No.2, Windemere Cooperative Housing Society
Limited, 236-A, Byramji Jeejibhoy Road, Bandra (West), Mumbai - 400 050,
Maharashtra |
|
Qualification |
B.Sc., B. Ed. |
|
Date
of Appointment |
1st January, 1982 |
|
Experience
|
33 years |
|
Previous
Employment |
Walsingham House School |
|
Other
Directorships |
Glenmark Exports Limited, Glenmark Research Laboratories Private Limited, Glenmark Finlease Private Limited |
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|
|
|
Name |
Mr. Glenn Saldanha |
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Designation |
Managing Director & Chief Executive Officer |
|
Age |
34 years |
|
Address |
Ivorick Apartments, Flat No.32, Third Floor, St.
Cyril Road, Opp. St. Andrew School Gate, Bandra (West), Mumbai - 400 050,
Maharashtra |
|
Qualification |
B. Pharm. / M.B.A. |
|
Experience
|
10 years |
|
Date
of Appointment |
1st August, 1998 |
|
Previous
Employment |
Pricewaterhouse Coopers (U.S.) |
|
Other
Directorships |
GM Pharma Limited, Glenmark Organics Limited |
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|
|
|
Name |
Mr. Julio F. Ribeiro |
|
Designation |
Director |
|
Age |
73 years |
|
Address |
51, Sagar Tarang, Worli Seaface, Worli, Mumbai -
400 025, Maharashtra |
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Qualification |
Ex-IPS |
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Other
Directorships |
IIT Corporate Services Limited |
|
Previous
Employment |
Ex-Commissioner of Police, Mumbai Former Special Secretary to Government of India, Ministry of Home Affairs Former Director General of Police, Mumbai Ex-Advisor to the Governor of Punjab Ex-Ambassador of India to Rumania |
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|
Name |
Mrs. Cheryl Pinto |
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Designation |
Director- Corporate Affairs |
|
Age |
37 years |
|
Address |
Flat No. 6, Windemere Cooperative Housing Society
Limited, 236-A, Byramji Jeejibhoy Road, Bandra (West), Mumbai - 400 050,
Maharashtra |
|
Qualification |
B. Pharm |
|
Experience
|
11 years |
|
Date
of Appointment |
1st August, 2000 |
|
Other
Directorships |
Managing Director of Cheryl Laboratories Private
Limited |
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|
|
|
Name |
Dr. Prasanna R. Gore |
|
Designation |
Director |
|
Age |
38 years |
|
Qualification |
Ph.D. and M.S. in Pharmaceutical Marketing from
University of West Virginia, Morgantown and B.Sc. from University of Bombay |
|
Experience |
11 years |
|
Other
Directorships |
Elected Vice Chairman of the American Association
of Pharmaceutical Scientists - Economic, Management and Marketing Section for
the year 2000. |
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|
|
|
Name |
Mr. Rajesh V. Desai |
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Designation |
Director- Finance/IT/Legal |
|
Age |
46 years |
|
Qualification |
Science Graduate and Chartered Accountant |
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Experience |
22 years |
|
|
|
|
Name |
Mr. J. M. Trivedi |
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Designation |
Director (Non Executive) |
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Age |
49 years |
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Qualification |
B. Tech (Chemicals Engineering) form Indian
Institute of Technology, Mumbai and has a Diploma in Basic Finance from
ICFAI. |
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Experience |
20 years |
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|
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|
Name |
Mr. Abhinna Sundar Mohanty |
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Designation |
Director – Domestic Formulations |
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Age |
50 years |
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Qualification |
M. Sc., In-charge of Domestic Formulations |
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Experience |
27 years |
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|
Name |
Mr. Sridhar Gorthi |
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Designation |
Non Executive Director |
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Age |
31 years |
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Qualification |
BA, LLB (Hons) from National Law School of India
University |
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|
Name |
Mr. Natvarlal B. Desai |
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Designation |
Non-Executive Director |
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Age |
76 years |
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Experience |
+ 45 years |
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|
Name |
Mr. M. Gopal Krishnan |
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Designation |
Non Executive Director |
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Age |
68 years |
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Experience |
25 years |
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|
Name |
Mr. Steven Bates |
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Designation |
Director |
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|
Name |
Dr. V Swaroop |
|
Designation |
Head – New Drug Discovery |
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|
Name |
Mr. Terrance Coughlin |
|
Designation |
President – US Operations and Head – API Sales |
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|
Name |
Mr. Ailton Wiliczinski |
|
Designation |
Chief Executive Officer – Brazil Subsidiary |
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|
Name |
Mr. K Anand |
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Designation |
Senior Vice President – Regulatory Affairs and QA
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|
Name |
Mr. Avdhut Sukhtankar |
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Designation |
Senior Vice President – Operations |
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|
Name |
Mr. Vithal Dhamankar |
|
Designation |
Vice President – Semi Regulated Market
(Formulations) |
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|
Name |
Mr. Arun Narayan |
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Designation |
Executive Vice President – EU Business |
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|
Name |
Dr. Vijay Soni
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Designation |
Global Head – IPM |
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|
Name |
Mr. Alind Sharma |
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Designation |
Vice President – Human Resources |
KEY EXECUTIVES
|
Name : |
Mr.
Marshall Mendonza |
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Designation
: |
Company Secretary |
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|
Name : |
Mr. Sanjay Chowdhary |
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Designation
: |
Assistant Company Secretary |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters
|
65140512 |
54.87 |
|
Resident
Individual |
17320525 |
14.59 |
Foreign Institutional Investor
|
23097210 |
19.46 |
|
Bodies
Corporate |
6243583 |
5.26 |
|
Indian Financial Institutions/ Banks |
2345701 |
1.98 |
|
Mutual
Funds |
2129060 |
1.79 |
|
Non
Resident Indians / OCBs |
1202158 |
1.01 |
|
Banks |
468808 |
0.39 |
|
H.U.F. |
226037 |
0.19 |
|
Employees |
200940 |
0.17 |
|
Clearing
Members |
200026 |
0.17 |
|
Directors
|
130500 |
0.11 |
|
Trusts |
15200 |
0.01 |
|
Overseas
Corporate Bodies |
500 |
0.00 |
|
Total |
118720760 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing and Marketing of Pharmaceutical Products |
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Products
: |
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Exports
to : |
Africa, Russia, Middle East, Asia and other countries |
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Imports
from : |
Europe and Far East |
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Terms
: |
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Purchasing : |
L/C, D/A or D/P |
PRODUCTION STATUS
|
Particulars |
|
Unit |
Installed Capacity |
Actual Production |
|
Injectibles
|
|
Ltrs |
-- |
139668 |
|
Liquid
Orals |
|
Ltrs |
4875000 |
3590325 |
|
Lotions
and externals |
|
Ltrs |
450000 |
682073 |
|
Ointments
and Creams |
|
Kgs |
966000 |
533728 |
|
Solids
and Powders |
|
Kgs |
105000 |
265738 |
|
Tablets
and Capsules |
|
Nos |
810000000 |
738009868 |
|
Bulk
Drugs |
|
Kgs |
300000 |
69727 |
GENERAL INFORMATION
|
Suppliers
: |
v
Alcap
Containers Private Limited v
Blown
Enterprise v
Corneilo
Packaging v
Joy
Enterprise v
K K
AIu Foil v
K
Laminates v
Manju
Industrial Ancillaries v
Print
Paks (India) v
Rajlaxmi
Plastics v
Super
Label Manufacturing Company v
Varsha
Plast v
Waxoils
Private Limited v Speciality Caps v
Aviditya
Chemical Corporation v
Plascap
Industries v
Mahesh
Industry v
Kraft-Pack
Containers v
Autofits v
Crown
Closures Private Limited v
D M
Printers v
Servewell
Printers v
Pharma
Plastics v
Desicca
Chemicals v
Renuka
Industries v
Standard
Packprints Private Limited v
Eskay
Packaging v
Mahalsa
Chemicals v
Bina
Packaging & Printers Private Limited v
Supreme
Alutainers Private Limited v
Agarwal
ISPAT Udyog v
Akshar
Enterprises v
Glindia
Chemicals v
Lifeline
Drugs & Intermeduates Private Limited v
Dayaram
Chemicals v
Plastic
pigments Private Limited v Synthochem Private Limited |
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No. of
Employees : |
1081 |
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Bankers
: |
Bank of
India Mahalaxmi Branch, Mumbai – 400 026, Maharashtra |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors
: |
Prince Waterhouse Chartered Accountants |
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Associates
: |
˜
Glenmark
Pharmaceutica LDA, Lote 4 – 2 – DT, Qta Do Meio, Rua Combatentes Do Ultramar,
2675 Odivelas, Portugal ˜
Glenmark
Pharmaceuticals (Canada) Limited, 2798, Thamesgate Dr., Unit 4, Mississauga,
Ontario, Canada L4T 1T9 ˜
Cheryl
Laboratories Private Limited ˜
Blossom
Pharmaceuticals ˜
Glenmark
Research Laboratories Private Limited ˜
Glenmark
Organics Limited ˜
Glen
Foods Private Limited ˜
Glenmark
Finlease Private Limited |
|
|
|
|
Subsidiaries
: |
Glenmark Dominicana S.A. Glenmark Impex LLC, Russia Glenmark Philippines Inc., Philippines Laboratorios Klinger Do Brazil Ltda, Brazil [name changed
as Glenmark Farmaceutica Ltda, Brazil w.e.f. June 01,2005] Glenmark Farmaceutica Ltda, Brazil [merged with
Laboratories Klinger Do Brazil Ltda, Brazil w.e.f. June 01, 2005] Glenmark Organics Limited, India Glenmark Exports Limited, India GM Pharma Limited Glenmark Pharmaceuticals lnc, U.S.A. Glenmark Pharmaceuticals (U.K.) Limited, U.K. Glenmark Pharmaceuticals Nigeria Limited , Nigeria Glenmark Pharmaceuticals Sdn. Bhd., Malaysia Glenmark Pharmaceuticals S.A., Switzerland Glenmark Chemicals Inc., U.S.A. [upto September 27, 2005] Servycal SA, Argentina Glenmark Pharmaceuticals Pty. Limited, South Africa Glenmark Pharmaceuticals [Australia] Pty. Limited,
Australia Bouwer Bartlett Pty. Limited, South Africa Glenmark Impex LLC, Russia |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
150000000 |
Equity
Shares |
Rs. 2/- |
Rs. 300.000 millions |
|
4000000 |
Cumulative
Redeemable Non convertible Preference Shares |
Rs. 100 |
Rs. 400.000 millions |
|
|
Unclassified
Capital |
|
Rs. 50.000 millions |
|
|
Total |
|
Rs. 750.000 millions
|
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
118720760 |
Equity
Shares |
Rs.2/- |
Rs. 237.442 millions |
|
2000000 |
7% Redeemable Cumulative Non –
Convertible Preference Shares |
Rs. 100/- |
Rs.200.000 millions |
|
440000 |
Equity Shares Warrant |
Rs. 0.10/- |
Rs. 0.044 millions |
|
|
Total |
|
Rs. 437.486 millions
|
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
437.486 |
437.286 |
218.546 |
|
|
2]
Reserves & Surplus |
2750.122 |
2429.774 |
2132.109 |
|
NETWORTH
|
3187.608 |
2867.060 |
2350.655 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
1418.318 |
1293.032 |
1029.429 |
|
|
2]
Unsecured Loans |
5868.404 |
3080.580 |
119.314 |
|
TOTAL
BORROWING
|
7286.722 |
4373.612 |
1148.743 |
|
|
DEFERRED
TAX LIABILITIES |
468.522 |
386.111 |
293.181 |
|
|
|
|
|
|
|
TOTAL
|
10942.852 |
7626.783 |
3792.579 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
2525.673 |
2093.010 |
1376.670 |
|
Capital work-in-progress
|
575.565 |
129.050 |
244.966 |
|
|
|
|
|
|
|
INVESTMENT
|
435.648 |
264.564 |
299.647 |
|
DEFERREX TAX ASSETS
|
0.000 |
25.287 |
23.627 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
1388.916 |
1110.593 |
821.601 |
|
|
Sundry Debtors
|
2827.924 |
1821.047 |
1304.813 |
|
|
Cash & Bank Balances
|
891.570 |
1092.793 |
67.694 |
|
|
Loans & Advances
|
3402.554 |
1871.872 |
392.263 |
Total Current Assets
|
8510.964 |
5896.305 |
2586.371 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
1096.926 |
779.013 |
705.349 |
|
|
Provisions
|
8.072 |
2.420 |
39.772 |
Total Current Liabilities
|
1104.998
|
781.433
|
745.121
|
|
Net
Current Assets
|
7405.966 |
5114.872 |
1841.250 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
6.419 |
|
|
|
|
|
|
|
TOTAL
|
10942.852 |
7626.783 |
3792.579 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
6237.480 |
5407.351 |
3836.409 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
853.009 |
869.353 |
525.420 |
Provision for Taxation
|
179.969 |
234.546 |
105.379 |
Profit/(Loss) After Tax
|
673.040 |
634.807 |
420.041 |
|
|
|
|
|
Export Value
|
1523.461 |
1301.355 |
489.539 |
|
|
|
|
|
Import Value
|
479.251 |
437.005 |
296.690 |
|
|
|
|
|
Total Expenditure
|
5384.471 |
4537.998 |
3315.759 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 (1st Qtr.) |
30.09.2006 [2nd Qtr.] |
31.12.2006 [3rd Qtr.] |
|
Sales
Turnover |
1307.000 |
1963.500 |
2018.700 |
|
Other
Income |
25.300 |
16.700 |
18.400 |
|
Total
Income |
1332.300 |
1980.200 |
2037.100 |
|
Total
Expenditure |
1112.700 |
1492.700 |
1501.700 |
|
Operating
Profit |
219.600 |
487.500 |
535.400 |
|
Interest |
36.100 |
45.900 |
79.800 |
|
Gross
Profit |
183.500 |
441.600 |
455.600 |
|
Depreciation |
55.300 |
61.300 |
58.800 |
|
Tax |
8.100 |
8.700 |
58.600 |
|
Reported
PAT |
100.200 |
320.500 |
301.700 |
Notes
200606 Quarter 1 Expenditure Includes (Increase)
/ Decrease in Stock in Trade Rs (100.094) million Consumption of Raw Materials
Rs 536.170 million Staff Cost Rs 224.043 million Selling, Operating & Other
Expenses Rs 452.494 million Tax Includes Provision for Current Tax Rs 13.475
million MAT credit entitlement Rs (13.475) million Deferred Tax Rs 19.925
million Fringe Benefit Tax Rs 8.144 million EPS is Basic Status of Investor
Complaints for the quarter ended June 30, 2006 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 11
Complaints disposed off during the quarter 11 Complaints unresolved at the end
of the quarter Nil 1. The above result were taken on record at the meeting of
the Board of Directors held on July 31, 2006. 2. The Statutory Auditors have
carried out a Limited Review of the result for the quarter ended June 30, 2006.
3. The Company is exclusively in the Pharmaceutical business segment. 4. The
redemption premium aggregating to Rs 71.330 million on FCCB of US$ 100 million
have been debited to Securities Premium Account. 5. Provision for Current and
Deferred taxation of Rs 33.40 million a for the quarter ended June 30, 2006 and
the actual tax liability of the Company will be determined on the basis of
taxable income of the Company for the year April 01, 2006 to March 31, 2007. 6.
During the quarter ended June 30, 2006, pursuant to Employee Stock Option
Scheme 2003, the Company has granted 192,000 options and cancelled 219,000
Option. As at June 30, 2006, 1,809,580 options were Outstanding. 7. Diluted EPS
includes provision for conversion of FCC Bonds. 8. The Institute of Chartered
Accountants of India (ICAI) has issued a revised AS 15 on Employee benefits
effective from April 01, 2006. The final liability in terms of said AS, for
certain post retirement & Other benefit plans will be determined at the
year end and obligation, if any, as on April 01, 2006 will be adjusted to
opening balance of General reserve. However, provision of Rs 50 has been made
in the current quarter. 9. During the quartet ended June 30, 2006, Company has
incorporated wholly owned subsidiary 'Glenmark Holding S.A.' in Switzerland.
10. Previous period's figures have been re-grouped / reclassified wherever
necessary.
200609 Quarter 2
Expenditure Includes (Increase) / Decrease in
Stock in Trade Rs (57.546)million Consumption of Raw Materials Rs 725.817
million Staff Cost Rs 234.694 million Selling, Operating & Other Expenses
Rs 589.784 million Tax Includes Provision for Current Tax Rs 41.725 million MAT
credit entitlement Rs(41.725)million Deferred Tax Rs 51.075 million Fringe
Benefit Tax Rs 8.656 million EPS is Basic Status of Investor Complaints for the
quarter ended September 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 05 Complaints disposed off
during the quarter 05 Complaints unresolved at the end of the quarter Nil 1.
The above results were taken on record at the meeting of the Board of Directors
held on October 31, 2006. 2. The Statutory Auditors have carried out a limited review
of the results for the quarter and half year ended September 30, 2006. 3. The
Company is exclusively in the Pharmaceutical business segment. 4. Provision for
Current and Deferred Taxation of Rs 126.200 million is for the half year ended
September 30, 2006 and the actual tax liability of the Company will be
determined on the basis of taxable income of the Company for the year April 01,
2006 to March 31, 2007. 5. During the quarter ended September 30, 2006,
pursuant to Employee Stock Option Scheme 2003, the Company has granted 125,000
options, converted 19800 options and cancelled 67600 options. As at September
30, 2006, 1,847,180 options were outstanding. 6. Subsequent to the current
quarter, Glenmark Pharmaceuticals S.A. a wholly owned subsidiary entered into
Outlicensing deal with Merck KGaA for its research molecule for Diabetes (DPPIV
inhibitor GRC 8200). 7. Diluted EPS includes provision for conversion of FCC
Bonds. 8. The Institute of Chartered Accountants of India (ICAI) has issued a
revised AS-15 on Employee Benefits effective from April 01, 2006. The final
liability in terms of said AS, for certain post retirement & other benefit
plans will be determined at the year end and additional obligation, if any, as
on April 01, 2006 will be adjusted to opening balance of General Reserve.
However, provision of Rs 0.50 million has been made in the current period. 9.
Previous period's figures have been re-grouped/ re-classified wherever
necessary.
200612 Quarter 3
The above results were taken on record at the
meeting of the Board of Directors held on January 23, 2007. 2. The Statutory
Auditors have carried out a limited review of the Standalone results for the
quarter and nine months ended December 31, 2006. 3. The Company is exclusively
in the Pharmaceutical business segment. 4. Provision for Current and Deferred
Taxation of Rs. 205.813 millions is for the nine months ended December 31, 2006
and the actual tax liability of the Company will be determined on the basis of
taxable income of the Company for the year April 1, 2006 to March 31, 2007. 5.
There were no investor complaints pending at the beginning of the quarter. 5
complaints were received from investors during the quarter and all have been
resolved. 6. During the quarter ended December 31, 2006, pursuant to Employee
Stock Option Scheme 2003, the Company has granted 3,000 options, converted
144,640 options and cancelled 103,500 options. As at December 31, 2006,
1,602,040 options were outstanding. 7. Interim dividend @ 40% was paid on the
paid-up Equity Share Capital as on January 5, 2007. 8. During the quarter, FCC
Bonds amounting to USD 8million were converted into 8,10,024 equity shares of
Rs.2/-each. 9. Diluted EPS includes provision for conversion of FCC Bonds. ib.
The Institute of Chartered Accountants of India (ICAI) has issued a revised
AS-15 on Employee Benefits effective from April 01, 2006. The final liability
in terms of said AS, for certain post retirement 8 other benefit plans will be
determined at the year end and additional obligation, if any, as on April 01,
2006 will be adjusted to opening balance of General Reserve. 11. Previous
period's figures have been re-grouped / re-classified wherever necessary.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.93 |
1.06 |
0.62 |
|
Long Term Debt Equity Ratio |
1.54 |
0.88 |
0.37 |
|
Current Ratio |
2.82 |
2.74 |
1.67 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.14 |
2.49 |
2.56 |
|
Inventory |
4.95 |
5.55 |
6.01 |
|
Debtors |
2.66 |
3.43 |
3.00 |
|
Interest Cover Ratio |
5.89 |
6.19 |
6.22 |
|
Operating Profit Margin (%) |
19.44 |
22.11 |
19.30 |
|
Profit Before Interest and Tax Margin (%) |
16.61 |
19.32 |
16.44 |
|
Cash Profit Margin (%) |
13.71 |
14.63 |
13.89 |
|
Adjusted Net Profit Margin (%) |
10.88 |
11.83 |
11.03 |
|
Return on Capital Employed (%) |
11.60 |
19.31 |
20.05 |
|
Return on Net Worth (%) |
23.31 |
25.53 |
22.28 |
STOCK
PRICES
|
Face Value |
Rs. 2/- |
|
High |
Rs. 578.00/- |
|
Low |
Rs. 541.00/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY :
Subject was originally incorporated under the name and style
of "Glenmark Pharmaceuticals Private Limited" under the Companies
Act, 1956 and became a deemed public company on 1st July, 1990, then
again became a private company on 27th September, 1990. The word
private was deleted on 1st July, 1991 and became a public limited
company on 12th January, 1996.
Subject is engaged in research and development,
manufacturing and marketing of branded formulations in India and abroad. The
company figures among the 30 largest and one of the fastest growing
pharmaceutical companies in India with an annual growth in excess of 33.4%
(ORG_RSA) May 2001 MAT), compared to the industry growth of 8.1%. It markets
products in 27 countries with offices and field forces in a number of these
geographies.
The company came out with a public issue in order to set up
a manufacturing facility at Goa and to set up a R & D centre at Mumbai by
providing funds to GM Pharma, its subsidiary.
The company has entered into a new segment of
obesity which helped in diversifying its revenue streams. The company also
plans to tap the huge generic opportunity available in the international
market. It intends to enter the generic market in the US and other countries
for which it established a 100% subsidiary, Glenmark Laboratories (GLL).
The company had plans to discover new molecules in the asthma, obesity and
diabetes segments. Glenmark had successfully entered the Active Pharma
Ingredient (API) Business in the 4th quarter of 2001-02. For diabetes the
company had established a Healthe on division. Out of the 11 products
introduced during 2001-02, 4 of were introduced for the first time in India.
The 3 brands which were acquired from Lyka Labs is performing well and out of
that brands, Flucort (topical steroid) had provided Glenmark to penetrate the
steriod market, which is the largest market in dermatology where Glenmark did not
earlier have a presence.
In 2003, GPL has acquired Bulk Drugs manufacturing Plant from GlaxoSmithkline
Pharmaceuticals at Ankleshwar. But the company has sold its Verna Plant at Goa
along with the shares of Glenmark Laboratories Limited. Glenmark Laboratories
is no longer a Subsidiary of GPL after this divestment.
The company has installed Bulk drug facility for the first time during the
financial year 2003-04 and the newly installed capacity is 60000 Kg.
The company has entered into a collaboration agreement during March 2005 with
Shasun Chemicals & Drugs Limited for the joint development, filing and
marketing of twelve generic pharmaceutical products for the US market.
During 2004-05 the company has incorporated Glenmark Pharmaceuticals SA, a
wholly-owned subsidiary in Switzerland to help manage NCE clinical trials as
well as build research skills that complement R&D activities in India. The
company has acquired an API Manufacturing Unit at Ankleshwar, Gujarat.
In March 2005 the company has issued bonus equity shares to its equity
shareholders in the ratio of 1:1.
In 2006, The company has set up a manufacturing facility at Baddi (H.P) for
manufacturing solid oral, liquid oral and semi-solids formulations, which was
commissioned from August 2005. The company plans to upgrade its facilities in
Ankleshwar and also commence pre-construction activities at its new API site in
Aurangabad (Gujarat). The company's Swiss Subsidiary acquired Bouwer Bartlett
Pty Ltd., South Africa
The company has increased the installed capacity of Tablets & Capsules,
Liquid Orals and Ointments & Creams by 24,00,00,000 Nos. 24,00,000 ltrs.
and 1,86,000 Kgs. respectively. With this expansion the total installed
capacity of Tablets & Capsules, Liquid Orals and Ointments & creams has
increased to 81,00,00,000 Nos. 48,75,000 ltrs. and 9,66,000 Kgs. respectively.
Business :
The company is engaged in manufacturing and marketing of
Pharmaceutical Products such as Orals, Lotions & Externals, Tablets and
Capsules, Solids and Powders, Ointments and others and Pesticide Products such
as Phorate 10% Gr., M.P.E.C, Neocidol, Endosulfan 35% EC, Cypermethrin 10% EC,
Cypermethrin 25% EC, Copper Oxychloride, Basudin 20% EC, Dichlorvos 76% EC
and Monocrotophos 36% and Others.
The company’s formulations plant has spacious operational
areas for different sections. Besides
Oral Tablets, Capsules and Oral Liquids Departments, there are facilities for
manufacturing Topicals – Creams, Lotions, Ointments and Powders. The entire facility uses the latest world
class technology.
The plant has been awarded the WHO GMP Certificate as the
facilities and operations fully conform to the stringent WHO requirements in
this respect.
The company has three plants in Goa which manufactures Oral
Solids (Tablets and Capsules), Liquid Orals, Topicals (Creams, Lotions,
Ointments) and Liquid Externals (Otic Drops).
These Plants have state-of-art equipments.
The company has a team of 853 medical representatives and
managers.
The company’s products figures among the leaders in the
dermatology and respiratory segments in India. It possesses significant
strength in internal medicine, gynaecology, paediatric and ENT segments.
The company came out with a public issue in order to set up
a manufacturing facility at Goa and set up a Research and Development Centre at
Mumbai by providing funds to GM Pharma, its subsidiary.
It has entered into a new segment of obesity which helped in
diversifying its revenue streams. The company also plans to tap the huge generic
opportunity available in the international market. It intends to enter the
generic market in the U.S.A. and other countries for which it has established a
100% subsidiary, Glenmark Laboratories (GLL).
The company had plans to discover new molecules in the
asthma, obesity and diabetes segments. The company had successfully entered
into the Active Pharma Ingredient (API) Business in the 4th quarter
of 2001-02. For diabetes the company had established a Healtheon division. Out
of the 11 products introduced during 2001-02, 4 were introduced for the first
time in India. The 3 brands which were acquired from Lyka Labs are performing
well and out of that brands, Flucort (topical steriod) had provided the company
to penetrate the steriod market, which is the largest market in dermatology
where the company did not earlier had a presence.
Set up a US subsidiary which has singed a Joint Venture
Agreement with Lannett Company Inc., USA for distributing its products in the
USA.
RESULTS OF OPERATIONS
The Directors are pleased to report satisfactory performance for the year under
report. The Company achieved gross revenue of Rs. 6,237.48 million (Rs.
5,407.35 million), registering an increase of 15.35% over the previous year.
This growth is mainly attributed to the increased focus through greater
divisionalisation, addition of field sales force and launch of new
products.
PROFITS
The operating profit before interest, depreciation & tax declined to Rs.
1086.02 million from Rs. 1174.68 million, a decrease of 7.55% over the previous
year.
OPERATIONS
Pharma Division
Domestic sales at Rs. 3,936.80 million (Rs. 3,027.74 million) registered an
increase of 30% over the previous year. The Company launched several new
products and line extensions across its seven retail divisions to strengthen
its portfolio during the year.
The Company has set up a manufacturing facility at Baddi, Himachal Pradesh for
manufacturing solid oral, liquid oral and semi-solids formulations, which was
commissioned from August 2005. It will largely focus on meeting the Company's
growth requirements for formulation production to cater to the domestic
market.
INTERNATIONAL BUSINESS
Revenues from the export of branded formulations increased to Rs. 1,006.94
million from Rs. 804.39 million for the previous year, recording a growth of
25%.
Revenues from sale of API to regulated and semi-regulated markets globally grew
to Rs. 525.91 million from Rs. 439.02 million for the previous year, recording
an increase of 20%.
The company has obtained registration for 298 formulation products and also
filed 373 additional registrations in several of its export markets. The
Company also commenced new business operations in Laos, St. Lucia, Barbados,
Byelorussia, Cameroon, Chile, Columbia, Nicaragua, Senegal and Tunisia.
- USA / North America:
Glenmark Pharmaceuticals Inc., USA [GPI], the wholly owned subsidiary, posted
revenues of Rs. 572.47 million, largely dominated by sales of the three
in-licensed products Naproxen, Nitroglycerin and Fosinopril Sodium. The Company
also launched a fourth inlicensed product, Esterified Estrogen and Methyl
Testosterone [EEMT] in the US market; the product is being manufactured by
Andapharm, LLC in the US Market and is expected to add substantially to the revenues.
Further the Company has received US FDA approvals for two generic ANDAs,
Fluconazole and Zonisamide. Glenmark is fully integrated on these two products
and will manufacture the formulations at Goa and the API at Ankleshwar.
Glenmark entered into a collaboration agreement with InvaGen Pharmaceuticals,
Inc. [InvaGen] for the joint development, filing and marketing of seven generic
pharmaceutical products for the US market.
Glenmark filed a total of 11 ANDAs in FY2006. In addition the Company has a
total of 16-17 products undergoing the US FDA approval process.
- Latin America / Brazil:
Glenmark Farmaceutica Ltda [GFL], the wholly owned Brazilian subsidiary, and
Servycal S.A., posted revenues of Rs. 758.95 million for the year 2005-06 against
Rs. 236.76 million for the previous year reflecting an increase of 221%.
Glenmark Pharmaceuticals SA, Switzerland [GPSA], the wholly owned Swiss
subsidiary of the Company, acquired a marketing company in Argentina in October
2005. The purchase of Servycal SA [Servycal], a company with a focused oncology
portfolio, marks the direct entry of an Indian pharmaceutical company for the
first time ever in Argentina. The Company has a portfolio of 17 products that
are registered in over 12 South American countries [excluding Argentina]. The
acquisition will offer a valuable opportunity to the Company to expand its
operations in South America.
The integration of the Argentine sales and marketing company, Servycal with the
rest of Latin American operations is progressing well.
- South Africa:
The Company's Swiss subsidiary acquired Bouwer Bartlett Pty. Limited [Bouwer
Bartlett], a South African sales and marketing company in December 2005. Bouwer
Bartlett, besides having a major presence in the dermatology segment, with a
basket of 22 products, and a significant marketing force, will be a strategic
entry point for the Company into one of the largest and fastest growing
pharmaceutical markets in the continent of Africa.
DOMESTIC API AND
CO-MARKETING
Revenues from the domestic API and co-marketing business amounted to Rs. 491.16
million in FY06 against Rs. 713.49 million for the corresponding period of the
previous year, recording a decline of 31 %.
The Company continues to tie-up API supply agreements with several of the large
generic players in the US and European markets.
The Company plans to upgrade its facilities in Ankleshwar and also commence
pre-construction activities at its new API site in Aurangabad.
The Company has already filed 7 DMFs in FY06 taking the count of total DMFs
filed to 20 as of 31st March, 2006.
The company is in trade terms with:-
·
K.
Laminates
·
Kraft-Pack
Containers
·
Autofits
·
Servewell
Printers
·
Pharma
Plastics
·
Carewell
Printers Private Limited
The
company’s fixed assets of important value include freehold and leasehold land,
factory building, other premises, plant & machinery, furniture &
fixtures, equipments, vehicles and brands.
PRESS RELEASES :
Glenmark posts for Q3
FY07 consolidated revenue growth of 118% and consolidated profits of Rs. 1889.2
million
Mumbai, January 23, 2007: Glenmark Pharmaceuticals Limited, the
research-led global and integrated pharmaceutical company, has posted gross
[total] consolidated revenues of Rs. 4461.22 Mn [USD1 99.13 Mn] for
the third quarter of the financial year 2006-07 ended December 31, 2006 and a
growth of 118% compared to the corresponding period of the previous year.
Consolidated profits for the quarter were Rs. 1889.82 million [USD 42.00 Mn];
while the net profit from the base business [net of milestones] stood at Rs.
615.93 Mn [USD 13.69 Mn].
Formulations: In the period under review, Glenmark’s US business posted
revenues of Rs. 835.29 Mn [USD 18.56 Mn], registering an extensive growth of
401% over the third quarter of the previous year. The Company’s Latin American
operations, comprising Glenmark Farmacêutica Ltda and Servycal S.A., posted
revenues of Rs. 292.03 Mn [USD 6.49 Mn] for Q3, reflecting an increase of 116%.
Exports of branded formulations brought in revenues of Rs. 425.37 Mn [USD 9.45
Mn], and a growth of 31% over the previous year. Revenues from the Indian
formulations’ segment registered an increase of 8%; Rs. 1123.36 Mn [USD 24.96
Mn].
API: The API business [international and domestic] for the quarter registered
a growth in revenues by 3% to Rs. 390.05 Mn [USD 8.67 Mn] over Q3 in FY 2006.
Drug Discovery: Oglemilast [a PDE4 inhibitor], Glenmark’s lead
molecule for asthma/COPD has completed the exercise-induced asthma trial on the
compound and is expecting the top line results shortly. Its development
partner, Forest Laboratories, would be undertaking Phase 2B clinical testing
after responding to the FDA’s questions. The Company is currently in the
process of evaluating several European partners for Oglemilast to develop and
market the drug in Europe.
Further to signing a EUR 190 Mn deal with Merck KGaA, Germany for
the development, registration and commercialization of GRC 8200, Glenmark’s
DPP-IV inhibitor for treating Type II Diabetes, earlier in Q3, the Company
received the upfront payment of EUR 25 Mn from its partner towards the end of
the same quarter. The molecule is currently in Phase 2 clinical testing in
India and South Africa.
Glenmark’s third molecule, GRC 6211, a vanilloid receptor [VR1]
antagonist compound for a range of pain indications entered Phase 1 trials;
conducted by Kendle, a leading global CRO. The Company hopes to complete Phase
1 by June 2007 and the dental pain study by October 2007; it aims to be an
early launcher in this class and targets launching the molecule in 2011.
Glenmark is also in discussions for potential licensing partners for this
compound.
Glenmark has three more molecules in the pre-clinical stages and
plans to take one of them, GRC 10801 [a CB1 antagonist for obesity], to the
clinics by March-April 2007. The
Company expects 2 more molecules, GRC 10693 [CB2
agonist for pain] and GRC 4039 [PDE4 for Rheumatoid Arthritis] to progress to
Phase 1 in Q1 and Q2 of FY08 respectively. Thus Glenmark expects to have 6
molecules in the clinics by next year.
Glenn Saldanha, Managing Director and CEO of
Glenmark said: “They remain committed to NCE research and are confident of
achieving the aggressive targets they have set out: they currently have three
molecules undergoing clinical trials and three more poised to enter the clinics
over the next six to eight months. On the generics and branded generics front,
they are happy with the buoyant growth shown by their US and Latin American
businesses and they expect them to contribute significantly to the overall
revenues.”
About Glenmark
Glenmark Pharmaceuticals Limited is a
research-led, global, fully integrated pharmaceutical company headquartered in
Mumbai, India. The Company is a leader in India in the discovery of new molecules
and is focused in the areas of inflammation [Asthma/COPD, etc] and metabolic
disorders [Diabetes, Obesity, etc].
Glenmark’s first Asthma/COPD molecule,
Oglemilast [GRC 3886], was licensed out to Forest Laboratories and Teijin
Pharma Limited for the North American and Japanese markets, respectively, in
two landmark deals. Oglemilast is presently undergoing Phase II clinical trials
in the US. The Company’s second lead GRC 8200, a DPP-IV inhibitor for Type II
Diabetes, is in Phase II clinical trials in South Africa and India. It was
recently out-licensed to Merck KGaA, Germany for the North American, European
and Japanese markets. A third molecule targeting pain, GRC 6211, recently
entered Phase I clinical trials in Europe. Glenmark has three other programmes
across obesity, inflammation and pain management at the pre-clinical stages;
all of which should enter the clinics in by H1 FY2008.
The Company also has generic and branded generic
formulation and API business interests spanning several product segments in
over 80 countries across the world including the highly regulated markets of
USA and Europe.
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available information
exist that suggest that subject or any of its principals have been formally
charged or convicted by a competent governmental authority for any financial
crime or under any formal investigation by a competent government authority for
any violation of anti-corruption laws or international anti-money laundering
laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 44.09 |
|
UK Pound |
1 |
Rs. 86.59 |
|
Euro |
1 |
Rs. 57.92 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT
LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent.
Repayment of interest and principal sums in default or expected to be in
default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |