MIRA
INFORM REPORT
|
Report Date : |
03.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
GLENMARK
PHARMACEUTICALS LIMITED |
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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 |
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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 |
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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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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 |
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Age |
66 years |
|
Address |
Flat No.2, Windemere Cooperative Housing Society Limited, 236-A,
Byramji Jeejibhoy Road, Bandra (West), Mumbai - 400 050, Maharashtra |
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Qualification |
M.Sc., DBM |
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Experience |
40 years |
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Date of
Employment |
1st December, 1977 |
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Previous
Employment |
Aristo Pharmaceuticals Private Limited |
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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 |
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Age |
64 years |
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Address |
Flat No.2, Windemere Cooperative Housing Society Limited, 236-A,
Byramji Jeejibhoy Road, Bandra (West), Mumbai - 400 050, Maharashtra |
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Qualification |
B.Sc., B. Ed. |
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Date of
Appointment |
1st January, 1982 |
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Experience |
33 years |
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Previous
Employment |
Walsingham House School |
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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 |
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Age |
34 years |
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Address |
Ivorick Apartments, Flat No.32, Third Floor, St. Cyril Road, Opp. St.
Andrew School Gate, Bandra (West), Mumbai - 400 050, Maharashtra |
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Qualification |
B. Pharm. / M.B.A. |
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Experience |
10 years |
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Date of
Appointment |
1st August, 1998 |
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Previous
Employment |
Pricewaterhouse Coopers (U.S.) |
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Other
Directorships |
GM Pharma Limited, Glenmark Organics Limited |
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|
Name |
Mr. Julio F. Ribeiro |
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Designation |
Director |
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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 |
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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 |
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Age |
37 years |
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Address |
Flat No. 6, Windemere Cooperative Housing Society Limited, 236-A,
Byramji Jeejibhoy Road, Bandra (West), Mumbai - 400 050, Maharashtra |
|
Qualification |
B. Pharm |
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Experience |
11 years |
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Date of
Appointment |
1st August, 2000 |
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Other
Directorships |
Managing Director of Cheryl Laboratories Private Limited |
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|
Name |
Dr. Prasanna R. Gore |
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Designation |
Director |
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Age |
38 years |
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Qualification |
Ph.D. and M.S. in Pharmaceutical Marketing from University of West
Virginia, Morgantown and B.Sc. from University of Bombay |
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Experience |
11 years |
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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 |
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Age |
46 years |
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Qualification |
Science Graduate and Chartered Accountant |
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Experience |
22 years |
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|
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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|
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 |
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Designation |
Head – New Drug Discovery |
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|
Name |
Mr. Terrance Coughlin |
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Designation |
President – US Operations and Head – API Sales |
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Name |
Mr. Ailton Wiliczinski |
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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 |
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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 |
SHAREHOLDING
PATTERN
|
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 |
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Mutual Funds |
2129060 |
1.79 |
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Non Resident
Indians / OCBs |
1202158 |
1.01 |
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Banks |
468808 |
0.39 |
|
H.U.F. |
226037 |
0.19 |
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Employees |
200940 |
0.17 |
|
Clearing Members |
200026 |
0.17 |
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Directors |
130500 |
0.11 |
|
Trusts |
15200 |
0.01 |
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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 |
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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 |
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|
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|
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 |
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
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|
|
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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 |
|
|
|
|
|
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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 Ltd [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.44.49 |
|
UK Pound |
1 |
Rs.85.71 |
|
Euro |
1 |
Rs.58.53 |
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
EXPLANATIONS
|
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|