MIRA
INFORM REPORT
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Report Date : |
15.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
GLENMARK PHARMACEUTICALS LIMITED |
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Registered Office : |
B/2, Mahalaxmi Chambers, 22, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
18.11.1977 |
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Com. Reg. No.: |
11-19982 |
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Capital
Investment / Paid-up Capital : |
Rs.270.270
Millions |
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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 |
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No. of Employees
: |
7000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (74) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Maximum Credit Limit : |
USD 79000000 |
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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 having fine track. Financial position of the
company appears to be sound. Fundamentals are strong and healthy. Trade
relations are fair. Business is actives. Payments are reported to be regular
and as per commitments. The company can be considered normal for
business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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|
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
|
Name : |
Mr. Aditya Parulakar |
|
Designation : |
Accountant |
LOCATIONS
|
Registered / Administrative Office : |
B/2, Mahalaxmi Chambers, 22, |
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Tel. No.: |
91-22-24964893 / 24964894 / 24964895 /
24964896 / 56549999 / 55902491 / 92 |
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Fax No.: |
91-22-24932648 / 23512177 / 23519652 |
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E-Mail : |
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Website : |
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Corporate Office : |
Gelnmark House, HDO – Corporate Building Wing
A, B D Sawant Marg, Chakala, Off Western Express Highway, Andheri (East),
Mumbai – 400 099, Maharashtra, India |
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Tel. No.: |
91-22-40189999 |
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Fax No.: |
91-22-40189986 |
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Manufacturing Facilities : |
Formulations ·
E – 37, MIDC Industrial Area, D-Road, Satpur, ·
Plot No. 7, Colvale Industrial Estate, Bardez –
403 115, ·
D-42, Plot No. 50, Kundaim Industrial Estate,
Kundaim – 403 115, ·
Village-Kishanpura, ·
Business Unit II, Village Bhattanwala, PO
Rajpura, Nalagarh District Solan, ·
Plot No. 2, Phase-II, Pharma Zone, Special
Economic Zone Area, Pitampur, ·
Rua Assahi, 33-1, Andar CEP: 09633-0110, Rudge
Ramos ·
Rua Frei Liberato De Gries, 548, Jardim
Arpoadar, CEP: 05572-210, ·
Glenmark Pharmaceuticals s.r.o., Fibichova 143,
56617, ·
Calle 9 Ing Meyer Oks N 593, Parque Industrial
Pilar, B1629MX Buenos Aires, Argentina
API ·
3109-C, GIDC Industrial Estate, Ankleshwar,
District Bharuch - 393 002, ·
Plot No. 163-165/170-172, Chandramouli Industrial
Estate, Mohal Bazarpeth, ·
Plot No. A80, MIDC Area, Kurkumbh, Daund, Pune
– 413 802, |
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Manufacturing Facilities under
Construction : |
Formulations ·
Growth
Centre, Samik-Marchak, District API ·
Z-103
I, Dahej SEZ, Dahej District, Bharuch, ·
Plot
No. B-25, Five Star MIDC, Shendra District |
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R and D Centers : |
·
Plot No.
A-607, TTC Industrial Area, MIDC, Mahape, Vashi, Navi Mumbai - 400 705, ·
Chemin
de la Combeta 5, 2300 La Chaux-de-fonds, ·
Plot
No. C 152, MIDC Sinnar Industrial Area, ·
Plot
No. M4, Taloja Industrial Area, MIDC Taloja, Takula Panvel – 410 208,
District – Raigad, |
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Clinical
Research Centre : |
·
Plot
No. D 508, TTC Industrial Estate, MIDC, Turbhe, Navi Mumbai – 400 705, ·
C2 7600,
The Quorum, |
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Divisional Office : |
Located at
:- ·
Mumbai ·
·
·
Chennai ·
·
·
Kolkata ·
Vadodara
·
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Branch Office : |
·
215/216,
Adhyaru Industrial Estate, Sun Mill Compounds, Lower Parel, Mumbai – 400 013,
Tel. No. : 91-22-24982172 ·
No.
2, ·
Plot
No. 39, Vasavinagar, ·
13-14-15,
·
10/58,
Kirth Nagar Industrial Area, ·
510, Commercial
Point, 79, Lenin Sarani, Kolkata – 700 013, West Tel. No. : 91-33-22449668 / 22467318 ·
IBF
Warehousing Complex, ·
817-819,
Sidharth Complex, Tel. No. : 91-126-2337857 / 2342359 |
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Overseas Office : |
·
Glenmark
Pharmaceutica LDA Lote 4 – 2 – DT, Qta Do Meio, Rua Combatentes Do Ultramar, 2675 ·
Glenmark
Pharmaceuticals ( 2798, |
DIRECTORS
As on 31.03.2011
|
Name
: |
Mr. Gracias
Saldanha |
|
Designation : |
Founder and Chairman Emeritus |
|
Address : |
Flat No.2, Windemere
Cooperative Housing Society Limited, 236-A, Byramji Jeejibhoy Road, Bandra
(West), Mumbai - 400 050, Maharashtra, India |
|
Date of Birth/Age : |
73 Years |
|
Qualification : |
M.Sc. with
Diploma in Management Studies |
|
Experience : |
39 Years |
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Date of Appointment : |
10.05.2011 |
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|
|
|
Name : |
Mr. Glenn
Saldanha |
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Designation |
Chairman and Managing Director |
|
Address |
Ivorick
Apartments, Flat No.32, Third Floor, St. Cyril Road, Opp. St. Andrew School Gate,
Bandra (West), Mumbai - 400 050, Maharashtra, India |
|
Date of Birth/Age : |
41 Years |
|
Qualification : |
B. Pharma /
M.B.A. |
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Date of Appointment : |
10.05.2011 |
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|
|
|
Name : |
Mrs. Cheryl
Pinto |
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Designation : |
Executive
Director |
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Address : |
Flat No. 6,
Windemere Cooperative Housing Society Limited, 236-A, Byramji Jeejibhoy Road,
Bandra (West), Mumbai - 400 050, Maharashtra, India |
|
Date of
Birth/Age : |
44 Years |
|
Qualification : |
Graduate in
Pharmacy |
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Experience : |
23 Years |
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Date of Appointment : |
01.08.2000 |
|
|
|
|
Name |
Mr. Abhinna
Sundar Mohanty |
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Designation |
Executive
Director |
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Qualification : |
M. Sc.,
In-charge of Domestic Formulations |
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Date of Appointment : |
Upto 10.05.2011 |
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|
|
|
Name |
Mrs. B. E.
Saldanha |
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Designation |
Non Executive
Director |
|
Address |
Flat No.2,
Windemere Cooperative Housing Society Limited, 236-A, Byramji Jeejibhoy Road,
Bandra (West), Mumbai - 400 050, Maharashtra, India |
|
Date of
Birth/Age : |
71 Years |
|
Qualification |
B.Sc., B. Ed. |
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Date of Appointment |
01.01.1982 |
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|
|
Name : |
Mr. Julio F.
Ribeiro |
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Designation : |
Non Executive
Director |
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Address : |
51, Sagar
Tarang, Worli Seaface, Worli, Mumbai - 400 025, |
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Date of Birth/Age
: |
82 Years |
|
Qualification : |
Ex-IPS |
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|
Name : |
Mr. N. B. Desai |
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Designation : |
Non Executive
Director |
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Date of
Birth/Age : |
84 Years |
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Experience : |
47 Years |
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|
Name : |
Mr. Sridhar
Gorthi |
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Designation : |
Non Executive
Director |
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Date of
Birth/Age : |
39 Years |
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Qualification : |
B.A., L.L.B.
(Hons.) from |
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|
Name : |
Mr. D. R. Mehta |
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Designation : |
Non Executive
Director |
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Date of
Birth/Age : |
74 Years |
|
Qualification : |
Graduated in
Arts and Law |
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Experience : |
41 Years |
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|
Name : |
Mr. Hocine Sidi
Said |
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Designation : |
Non Executive
Director |
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Date of
Birth/Age : |
46 Years |
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Qualification : |
B.A.
(International Marketing) |
|
Experience : |
21 Years |
KEY EXECUTIVES
|
Name : |
Mr. Marshall Mendonza |
|
Designation : |
Company Secretary |
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|
Name : |
Mr. Aditya Parulakar |
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Designation : |
Accountant |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
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|
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|
2,335,309 |
0.86 |
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|
128,241,936 |
47.43 |
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|
128,241,936 |
47.43 |
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|
130,577,245 |
48.29 |
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Total shareholding of Promoter and Promoter Group (A) |
130,577,245 |
48.29 |
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(B) Public Shareholding |
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|
6,659,220 |
2.46 |
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|
10,752,573 |
3.98 |
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88,089,894 |
32.58 |
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105,501,687 |
39.02 |
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|
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|
5,119,854 |
1.89 |
|
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|
18,492,593 |
6.84 |
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|
8,211,685 |
3.04 |
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2,475,739 |
0.92 |
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|
76,359 |
0.03 |
|
|
589,036 |
0.22 |
|
|
1,658,779 |
0.61 |
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|
10,054 |
- |
|
|
141,511 |
0.05 |
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|
34,299,871 |
12.69 |
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Total Public shareholding (B) |
139,801,558 |
51.71 |
|
Total (A)+(B) |
270,378,803 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
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|
- |
- |
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- |
- |
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Total (A)+(B)+(C) |
270,378,803 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Trusts
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of
Pharmaceutical Products |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
|
Unit |
Installed Capacity |
Actual Production |
|
Injections |
|
Litres |
- |
150119 |
|
Liquid Orals |
|
Litres |
8553666 |
4825608 |
|
Lotions and
externals |
|
Litres |
870025 |
686220 |
|
Ointments and
Creams |
|
Kgs. |
1153500 |
731372 |
|
Solids and
Powders |
|
Kgs. |
113000 |
286185 |
|
Tablets and
Capsules |
|
Nos. |
1182950000 |
760097746 |
|
Aerosol Spray |
|
Nos. |
3000000 |
357213 |
|
Inhaler Capsules |
|
Nos. |
400000 |
198558 |
|
Others |
|
-- |
-- |
60142 |
Notes:
·
The products of the Company are exempt from
licencing procedures.
·
Installed capacity, being a technical matter, has
not been verified by the auditors. However, the management has certified the
same.
·
Actual production includes goods manufactured at
third party manufacturing facilities on loan licence basis and at leased facilities.
GENERAL INFORMATION
|
No. of Employees : |
7000 (Approximately) |
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Bankers : |
Bank of |
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Facilities : |
Notes: 1.
Term loan is secured by way of exclusive charge
as the case may be, at certain locations, on Company's fixed assets both
present and future. 2.
Working Capital Facilities is secured by
hypothecation of Stocks of raw materials, packing materials, finished goods,
work in process, receivables and equitable mortgage on fixed assets at the
manufacturing facility at
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Banking Relations : |
-- |
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Auditors : |
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Name: |
Walker, Chandiok and Company Chartered Accountants |
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Address: |
Mumbai |
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Cost Auditors: |
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Name: |
Sevekari Khare and Associates Chartered Accountants |
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Address: |
Mumbai |
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Solicitor : |
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Subsidiaries
Companies : |
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Joint Venture : |
Glenmark Pharmaceuticals ( |
CAPITAL STRUCTURE
As on 11.08.2011
Authorised Capital : Rs.750.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.270.413
Millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
350000000 |
Equity Shares |
Re.1/- each |
Rs.350.000 Millions |
|
4000000 |
Cumulative
Redeemable Non-convertible Preference Shares |
Rs.100/- each |
Rs.400.000 Millions |
|
|
Total |
|
Rs.750.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
270272053 |
Equity Shares |
Re.1/- each |
Rs.270.270 Millions |
Note
· During the year ended 31st March, 2011 the Company, pursuant to Employee Stock Option Scheme 2003, has granted 227000 options at market price as defined in SEBI (ESOS) Guidelines and cancelled 488300 options.
· During the year 434500 options were converted into Equity Shares under the Employee Stock Option Scheme, 2003. As at 31st March, 2011, 1937700 options were outstanding under Employee Stock Option Scheme 2003. On exercise of the options so granted under Employee Stock Option Scheme 2003, the paid-up Equity Share Capital of the Company will increase by a like number of shares.
· On 18th September 2009, the Company allotted 18712935 Equity Shares of Re.1 each at a premium of Rs.220/- per share to Qualified Institutional Buyers pursuant to chapter VIII of the Securities Exchange Board of India (Issue of Capital and Disclosure Requirement) Regulation 2009.
· Of the above 158371140 Equity Shares of Re.1 each are allotted as fully paid-up Bonus Shares by Capitalization of Reserves.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales and Operating Income |
11535.510 |
9830.280 |
8661.724 |
|
|
|
Other Income |
314.720 |
91.900 |
994.923 |
|
|
|
TOTAL (A) |
11850.230 |
9922.180 |
9656.647 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of sales |
3914.140 |
3263.930 |
3055.159 |
|
|
|
Selling and Operating Expenses |
4288.090 |
4473.210 |
2880.774 |
|
|
|
Research and Development Expenses |
569.200 |
460.550 |
514.584 |
|
|
|
Exceptional Item |
0.000 |
0.000 |
2.980 |
|
|
|
TOTAL (B) |
8771.430 |
8197.690 |
6453.497 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3078.800 |
1724.490 |
3203.150 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (NET) (D) |
360.820 |
301.580 |
551.386 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2717.980 |
1422.910 |
2651.764 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
209.880 |
212.780 |
191.045 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2508.100 |
1210.130 |
2460.719 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
386.320 |
(74.500) |
281.456 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2121.780 |
1284.630 |
2179.263 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
8511.120 |
7480.980 |
5636.879 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend on Equity Shares |
108.110 |
107.940 |
100.208 |
|
|
|
Tax on Proposed Dividend on Equity Shares |
17.960 |
17.930 |
17.030 |
|
|
|
Residual Dividend and Dividend Tax |
0.500 |
0.160 |
0.000 |
|
|
|
Transfer to General Reserve |
212.190 |
128.460 |
217.926 |
|
|
BALANCE CARRIED
TO THE B/S |
10294.140 |
8511.120 |
7480.978 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB basis |
3020.010 |
2649.150 |
2068.524 |
|
|
|
Guarantee Commission |
11.210 |
26.060 |
29.135 |
|
|
|
Interest on loan to subsidiaries |
308.040 |
278.250 |
136.067 |
|
|
TOTAL EARNINGS |
3339.260 |
2953.460 |
2233.726 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Materials |
158.840 |
150.440 |
114.254 |
|
|
|
Capital Goods |
166.850 |
77.920 |
182.620 |
|
|
TOTAL IMPORTS |
325.690 |
228.360 |
296.874 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share - Basic (Rs.) |
7.86 |
4.93 |
8.72 |
|
|
|
Earnings Per Share - Diluted (Rs.) |
7.85 |
4.92 |
8.54 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
3270.880 |
3827.190 |
|
Total Expenditure |
|
2214.160 |
3427.720 |
|
PBIDT (Excl OI) |
|
1056.720 |
399.470 |
|
Other Income |
|
36.900 |
9.480 |
|
Operating Profit |
|
1093.620 |
408.950 |
|
Interest |
|
129.540 |
1.630 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
964.080 |
407.320 |
|
Depreciation |
|
49.670 |
51.690 |
|
Profit Before Tax |
|
914.410 |
355.630 |
|
Tax |
|
189.760 |
41.030 |
|
Provisions and contingencies |
|
0.000 |
0.0000 |
|
Profit After Tax |
|
724.650 |
314.600 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
724.650 |
314.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
17.90
|
12.95
|
22.57
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
21.74
|
12.31
|
28.41
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.94
|
7.01
|
10.71
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.07
|
0.20
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.69
|
0.55
|
1.06
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
9.18
|
7.30
|
8.88
|
LOCAL AGENCY FURTHER INFORMATION
RESULTS OF OPERATIONS
On
standalone basis the Company achieved a gross revenue of Rs.12122.480 millions and
the Standalone operating profit before interest, depreciation and tax was
Rs.3078.800 millions as compared to Rs.1724.490 millions in the previous year.
MANAGEMENT
DISCUSSION AND ANALYSIS
GLOBAL ECONOMY OUTLOOK
Nearly
four years after the onset of the largest financial crisis since the Great
Depression, global financial stability is still not assured and significant
policy challenges remain to be addressed. Even though global economic growth
has accelerated, global financial stability has yet to be secured.
In
advanced economies, activity has moderated less than expected, but growth
remains subdued and unemployment is still high. The slow growth prospects and
accommodative monetary policies of advanced economies, aided by relatively
favorable fundamentals and carry trade opportunities in emerging market
economies have spurred capital flows to such economies. This creates upward
pressure on asset markets in receiving countries, while raising the latent risk
that inflows could reverse and, as a result, poses considerable policy
challenges on how best to absorb the flows. In many emerging economies,
inflation pressures are also emerging, and there are now some signs of
overheating, driven in part by strong capital inflows.
GLOBAL PHARMA SCENE
2011
marks the beginning of a critical two year period where global innovative
pharma companies stand to lose the maximum value to generic competition due to
high value patent expirations. The total value at risk stands at more than USD
30 Bn in 2011. This impending loss of value, aided by the lower new drug
approval rates by major regulatory agencies including US FDA, increased costs
of drug development and drying up of R and D pipelines, had spurred Big Pharma
to adopt a battery of strategies in the past few years to minimize its effect
and make avenues for future growth. The two major strategies that have emerged
are as follows:
Pharmerging Markets: The hot spot of pharma action
As
countries recover from the global economic crisis at different rates, there is
growing divergence in the pace of pharmaceutical growth among major markets.
While the emerging markets, or the Pharmerging markets, stand to benefit from
greater government spending on healthcare and broader public and private
healthcare funding, the advanced markets are expected to continue growing at
much lower rates in FY 12. Pharmerging countries are forecast to grow at a
15-17 percent rate in 2011, to $170-180 billion, vis-a-vis the single digit
growth rates expected for the developed markets.
The
recent political developments in the Middle East also threatened to affect
there covery of the global economy, specially the emerging economies like
India, that rely on the Middle East for their oil requirements, by driving up
inflation levels. But with
A
more influential crisis had been the one that hit the world’s 3rd largest
economy. The earthquake and tsunami, followed by the nuclear emergency, have
definitely been one of the worst crises that have hit
Notwithstanding
these factors, financial market performance has been favorable thus far in
early 2011, reflecting the more positive economic climate, ample liquidity, and
expanding risk appetite.
Although
the growth prospects make these markets attractive avenues for future growth,
multiple factors have made inroads into these markets relatively less easy.
Overpriced Valuations
A
recent flurry of mergers and acquisitions in the Pharmerging space have driven
up valuations of the local companies steeply, thus depriving Big Pharma of the
option of good local acquisitions to quite an extent. However, the deep pockets
and appetite for growth of these companies still promise a few high value deals
in the Pharmerging markets in the near future.
Pricing Controls
Most
markets, including the Pharmerging markets have continually beefed up their
cost containment measures in the last few years. With the addition of more and
more products into the list of price controlled products, companies will find
it harder to derive good margins from their businesses.
Barriers to Entry
The
influx of huge investment by MNC pharma companies into the Pharmerging markets
also manifests into higher level of competition for the local players. With
deeper pockets and better product portfolios, MNCs stand to take away huge
chunks of business from these players. Hence, many governing bodies have
started setting up direct/indirect barriers to entry to manage the direct and
indirect impact of this keen interest of MNCs on the local players, as well as
the final consumers. Insistence of local manufacturing of the products filed to
enable faster approvals, governed prices and competition for IP protected
products are just a few of the tools that governments have used to shield the
local players and consumers
Biologics and Biosimilars: New Avenues for growth
The
industry is slowly moving away from the primary care, small molecule driven
sales model, towards targeting specialist secondary care indications through
the use of high-value biologic therapies. Industry pundits predict that, by
2016, bio engine ered vaccines and biologics will account for 23 % of the
global market (measured by value), up from 17 % in 2009. This is attributed to
the high unmet need satisfied by these drugs, their high price points and the
relative recent entry of many biologics into the market, hence ensuring
protected value for some time. Also, bio similars that face patent expiry are
largely insulated from sales erosion due to the high barriers to market entry
at present.
But
although the entry barriers are high, generic companies are not shying away
from this opportunity. Increasingly the branded biologics face the threat of
sales erosion from bio similars post-patent expiry, with the biosimilars market
estimated to reach $76 billion through 2020. Approval pathways for bio similars
have been set up in Europe and
BUSINESS REVIEW
During the financial year, the Specialty Business focused on 3 critical
are as globally:
People Development
They
have focused on enhancing the productivity of their most critical resource,
their people. Their training and development efforts encompassed skill,
personality, as well as leadership facets of their human capital, resulting in
better performance of their people across the value chain.
Product Pipeline Management
Continuing
with their therapeutic focus strategy, they have strived to bolster the
portfolio of their key therapy areas, across markets. Their new product
introduction process is now more robust, focusing on the quality of new
launches, rather than the sheer number.
Operational Efficiency
During
the year, the focus on improving operational efficiency was evident at all
levels of the value chain. They streamlined their field force and aligned them
with their therapeutic focus to enhance productivity. Greater control was
exercised on their in-channel inventory, as well as receivables management. The
Company also put up additional capacities and processes to infuse their
manufacturing and supply chain with heightened levels of efficiencies. All
these efforts have resulted in solid secondary sales growth, higher
profitability and higher cash flows.
Sales
for the formulation business in
The
Company has registered value growth of 23.9 % vis-a-vis the industry growth of
15.3% (ORG: MAT Mar 2011) to attain 25th
rank and gaining 0.10 % market
share in FY 11 as per MAT Mar 2011. The growth is driven by significant gains
in market share and rankings of top brands as per ORG (MAT Mar 2011).
·
Ascoril
(Expectorant + Mucolytic) has gained 11 ranks to be at 91 (MAT Mar 2010ranked
102)
·
Telma
(Telmisartan) gained 40 ranks to be at 95 (MAT Mar 2010 ranked 135)
·
Telma-H
(Telmisartan, Hydrochlorothiazide) has gained 37 ranks to be at 158 (MATMar
2010 ranked 195)
·
Candid
(Clotrimazole) has gained 20 ranks to be at 270 (MAT Mar 2010 ranked 290)
The
Company strengthened its footing in various therapeutic segments by exhibiting
growth in market share such as Cardiology 2.35 % (MAT MS Mar 2010 2.0 %),
Dermatologist8.34 % (MAT MS Mar 2010 8.0 %), Respiratory 2.67 % (MAT MS Mar
2010 2.22 %) and Gynecology1.25 % (MAT MS Mar 2010 1.08 %).
The
Company further strengthened its presence in the respiratory segment by launch
of“ Glenmark-Respiratory Division”, offering an innovative product basket
comprising of Metered Dose Inhalers (MDIs), Dry Powder Inhaler formulations
(DPIs) and devices developed in-house, with a focus on better drug deposition
and improved patient compliance. The Dry Powder Inhalation (DPI) formulation is
based on patented PLATFORM technology.
The
launch and implementation of Glenmark Focused Reporting for Complete
Efficiency, or G Force last year started yielding its fruits, proving itself as
an effective business intelligence tool for performance evaluation, tracking
sales force activities and monitoring sales trend. Faster information flow
through G Force significantly enhanced the productivity of sales team and
further boosted sales performance efficiency byestablishing process driven
sales management.
Glenmark
has always been proactive in dissemination of scientific information and latest
updates facilitating Doctor in their clinical practice. It took a step forward
to establish a ‘Knowledge Point’ to address Medical Queries through MIDAS
(Medical Information and Dissemination Services). MIDAS aims at providing quick
response to any query or the latest information to doctors. The Company also
implemented Webinar, at echnologically advanced module to reach doctors for
conducting continuous medical education program. Webinar is an efficient model
to address doctors across
ROW MARKETS
During
the entire financial year there was high focus on improving operational
efficiency at all levels which resulted in solid secondary sales growth, higher
profitability and higher positive net cash flow for the Russian operations. The
Company showed a revenue growth of 45 % for the year. This significant increase
in sales was backed by effective sales force activities and good growth in
power brands. The new product - Glencet, launched at the end of Q3 FY 11 is
gaining momentum and has shown a positive trend.
According
to the latest Pharm expert data (Mar 2011) the Company has registered a value
growth of 31.83 % vis-a-vis that of the industry 6.46 % (on a MAT basis). They
are the fastest growing Indian company in
The
year gone by has also been one of the most dynamic on the regulatory front,
with stricter and more elaborate clinical requirements for product
registrations. This change has increased the bar for future product approvals
of the pharma industry in
In
the other CIS markets,
Africa and
Although
the economies of Africa and Middle East region went through some turbulence in
the year due to certain political developments, Glenmark’s Africa and
The
year was marked by several first-to-market innovative product launches across
key therapeutic categories.
In
the year, the Company also put in place various systems to enhance the control
and service levels, as well as overall inventory and cash flow positions in the
region.
The
year has clearly been one of consolidation and growth for the Company’s
In
its endeavor to strengthen the presence in key therapy segments of Dermatology
and Internal Medicine, Glenmark convened two regional scientific forums: iLEAD
With
the
(International
League of Experts for Advancement of Dermatology) and iLEAP (International
League of Experts for Advancements of Physicians) in the year. iLead and iLeap
are platforms where eminent KOLs from 6 different countries viz. Philippines,
Malaysia, Vietnam, Sri Lanka, Myanmar and Cambodia come together and
participate in interactive scientific sessions encompassed contemporary topics,
latest clinical content published worldwide and clinical case discussions that
provide food for thought and many take-home messages.
The
strategy of Power and Focus brands continued to give rich dividends in
In
the year, Glenmark received 31 products approvals for the region, and did many
high impact launches, including the launch of Deriva MS and Klenzit MS in
The
year also saw an unequivocal focus on developing a stronghold in rest of the
Latin American region, especially
Relatively
a new region for Glenmark, its
During
the year, the Company’s aim was to fortify its position in current focus
therapy areas, by the means of more efficient marketing efforts and high impact
new launches that further strengthened its portfolio.
Through
its marketing efforts, the Company strived to consolidate market shares of its
existing products and gain share for the new ones. These efforts have manifested
into many of its generic brands becoming the highest selling generics, even
after relative late entry into the respective markets. The secondary sales for
the entire region grew by 52 %for the year, vis-a-vis the market growth of 5 %,
making Glenmark one of the fastest growing branded generic companies in the
region.
With
robust systems in place, enhanced focus on generating maximum return on investment
and new launches lined up, the
During
the year,
The
Company also continued to focus on the search for new in-licensing
opportunities and the launch of its own products under registration to scale up
its European operations.
The
year also saw the Company’s operations enter
US Formulations
Glenmark
Generics Inc.,
In
the year, filed a total of 13 ANDAs with the FDA and was granted 22 ANDA
approvals, comprised of 18 final and 4 tentative approvals. The Company aims to
file another 20 ANDAs in the FY 12. The Company currently has 41 applications
pending in various stages of the approval process with the US FDA. Also, the
Company has 14 Para IV applications pendin gapproval of which Glenmark is the
sole first-to-file for four products.
During
the year, Glenmark, jointly with Lehigh Valley Technologies (LVT), received
theapproval of two NDAs for a line of controlled substance products containing
Oxycodone Hydrochloride by the US FDA. The two approved NDAs provide Glenmark
and LVT with manufacturing and distribution rights to the only FDA-approved
Oxycodone immediate release capsules and oral solution currently available in
the
Glenmark
launched a total of 25 products during FY 11 comprised of a mix of immediate
release tablets, extended release tablets, oral-contraceptives, semi-solid and
controlled substance items. Glenmark’s marketing portfolio consists of 67
generic products authorized for distribution in the
During
the first half of the fiscal year, Glenmark announced three settlements
involving paragraph IV filings for atovaquone/proguanil tablets, ezetimibe
tablets andeszopiclone tablets as follows:
·
Atovaquone/Proguanil
tablets: Under the terms of the settlement agreement, Glenmark will be able to
market and distribute its generic version of Malarone R tablets under a
royalty-bearing license from GSK in the 3rd quarter of calendar year 2011, or
earlier under certain circumstances.
·
Ezetimibe
tablets: Glenmark will be able to its generic version of ZetiaR on December 12,
2016 or earlier under certain circumstances, ahead of the April 25,
2017expiration of Merck's patent exclusivity for Zetia R. Glenmark believes
that it is entitled to 180 days of exclusivity as the first generic to file.
·
Eszopiclone
tablets: Based on the terms of the settlement and license agreement, and upon
approval, Glenmark would be permitted to launch its generic product on the
later of November 30, 2013, or May 30, 2014 if Sepracor obtains paediatric
exclusivity for Lunesta R. The settlement and license agreement and Consent
Judgment and Order also would permit Glenmark to launch its generic product
earlier under certain circumstances. Glenmark believes it is entitled to 180
days of exclusivity as the first generic to file.
During
the year, Sanofi SA and Abbott Laboratories won a
Glenmark
Generics continued to grow aggressively in
As
part of the strategy to expand the geographic footprint in Europe, the year saw
the creation of two new subsidiaries in
The
business model for Glenmark Generics in Europe is built on creation of own
businesses in a few selected key markets like the UK, Netherlands, Germany and
the Nordic markets which follow the pure generic model, while licensing out to
clients in several other EU markets on both a Pan-European as well as country
specific basis. In markets where Glenmark is present through its entities (
The
GGBV
won tenders for four products in the
The
out-licensing business made progress through the culmination of several new
deals with Pan-European and local generic companies across the European
markets. Through these deals, Glenmark currently supplies products to clients
operating in 16 countries across Europe which include
GGEL
in-licensed six new products and these are expected to be available for sales
in
OUTLOOK
Glenmark's
short-term and long-term outlook is encouraging for several reasons. On the
discovery front, the pipeline is progressing well with 6 molecules in clinics,
of which one is in Phase III and two in Phase II trials. The company will also
continue with its approach of out-licensing its molecules. On the generics
front, with high value patented drugs going off patent in the coming years,
there is huge potential for the generics business. Glenmark is actively
increasing its base in major generics markets of US and
CONTINGENT LIABILITIES AND CAPITAL COMMITMENT NOT PROVIDED FOR
|
Particulars |
As
on 31.03.2011 Rs.
in millions |
|
(a) Bank guarantees |
20.280 |
|
Disputed income tax/excise duty/sales tax |
27.370 |
|
Claims against the Company not acknowledged as debts (Refer Note i) |
0.150 |
|
Open letters of credit |
6.390 |
|
Indemnity bond |
260.250 |
|
Call money payable to Glenmark Pharmaceuticals ( |
1.230 |
|
Corporate guarantee (Refer Note ii) |
5687.130 |
|
Corporate guarantee (Refer Note iii) |
1206.360 |
|
|
|
|
Note: |
|
|
i) In respect of labour/industrial disputes |
|
|
ii) Corporate guarantee given on behalf of various subsidiaries: |
|
|
Citibank (Glenmark Holding SA, |
-- |
|
ICICI Bank (Glenmark Holding SA, |
638.920 |
|
Citibank (Glenmark Pharmaceuticals S.R.L Romania) |
5.440 |
|
ALD Automotive (Glenmark Impex L.L.C., |
102.410 |
|
ING Vysya Bank (Glenmark Generics Limited, |
-- |
|
Central Bank of |
1500.000 |
|
Citibank (Glenmark |
89.360 |
|
Yes Bank Ltd. (Glenmark Generics Limited, |
-- |
|
Yes Bank Ltd. (Glenmark Generics Limited, |
-- |
|
Citibank (Glenmark Impex L.L.C., |
536.160 |
|
Citibank (Glenmark Impex L.L.C., |
223.400 |
|
Citibank (Glenmark Pharmaceuticals SK s.r.o, |
44.680 |
|
Citibank (Glenmark Pharmaceuticals S.R.L Romania) |
134.040 |
|
Citibank (Glenmark Distributors SP z.o.o, |
134.040 |
|
Citibank (Glenmark Impex L.L.C., |
44.680 |
|
Citibank (Glenmark Holding S.A., |
2234.000 |
iii) The Company’s
subsidiary, Glenmark Generics Inc., U.S.A (GGI) (formerly known as Glenmark
Pharmaceuticals Inc., U.S.A. (GPI) on 2 June 2006 has entered into an Agreement
with Paul Royalty Fund Holdings II (PRF) pursuant to which, PRF will pay upto
USD 27 million to GGI for the development and commercialisation of certain
products for the
(b) Estimated
amount of contracts remaining to be executed on capital account, net of
advances, not provided for
as at 31 March
2011 aggregate Rs.233.78 millions.
FIXED ASSETS
Tangible Assets
·
·
·
· Other buildings and premises
· Plant and Machinery
· Furniture and Fittings
· Equipments
· Vehicles
Intangible Assets
·
Computer Software
·
Brands
WEB DETAILS
BUSINESS DESCRIPTION
Subject is a pharmaceutical company engaged in discovery of
new molecules both new chemical entities (NCEs) and new biological entities
(NBEs). The Company operates in five geographical areas:
BOARD OF DIRECTORS
Mr. Glenn Mario
Saldanha - Executive Chairman of the Board, Chief Executive Officer, Managing
Director
Mr. Glenn Mario Saldanha is Executive Chairman of the Board, Chief
Executive Officer, Managing Director of subject. He is a B.Pharma from
Education
MBA ,
B ,
Mr. Gracias A
Saldanha - Non-Executive Chairman and Promoter
Mr. Gracias A. Saldanha is the Chairman Emeritus of subject effective
from May 10, 2011. He is the fousnder of the Company. He has over 39 years
experience in the industry. His educational qualifications include a M.Sc. from
Education
MS ,
Mr. Natvarlal
Bhimbhai Desai - Non-Executive Independent Director
Mr. Natvarlal Bhimbhai Desai is Non-Executive Independent Director of
subject. He is a retired General Manager of Bank of Baroda. He has over 46
years experience in the Banking Sector. He has worked in
Mr. Sridhar Gorthi
- Non-Executive Independent Director
Mr. Sridhar Gorthi is Non-Executive Independent Director of subject. He
is a B.A., L.L.B. (Hons.) from the National Law School of India University. Mr.
Sridhar Gorthi is presently a partner in Trilegal and has worked with Arthur
Anderson and Lex Inde, Mumbai. He is involved in legal advisory services to
various multinational and domestic corporations on restructuring, debt finance,
joint ventures, acquisition/mergers etc.
Education
LLB ,
BA ,
Mr. D. R Mehta -
Non-Executive Director and Additional Director
Shri. Devendra Raj Mehta is the Non-Executive Independent Director of
subject. He is a graduate in Arts and Law from
Education
LLB , Royal Institute of Public Administration
BA , Royal Institute of Public Administration
Management, Massachusetts Institute of Technology
Mr. Julio F.
Ribeiro - Non-Executive Independent Director
Mr. Julio F. Ribeiro is Non-Executive Independent Director of subject.
He is a retired government official and has served the country under various
assignments. Amongst the positions held, he has been the Ex-Commissioner of
Police, Mumbai, former Special Secretary to Government of India, Ministry of
Home Affairs, former Director General of Police, Punjab, Ex-Adviser to the
Governor of Punjab, Ex-Ambassador of
Education
B Commerce,
Mr. Hocine Sidi
Said - Non-Executive Director
Mr. Hocine Sidi Said is the Non-Executive Independent Director of
subject. He has graduated in B.A. (International Marketing). He is the Founder
and Director of Bio-nAbler, an investment company that partners with Sovereign
Wealth Funds and Private Equity Firms across
Mrs. B. E Saldanha
- Non-Executive Director and Promoter
Mrs. B. E. Saldanha is the Non-Executive Director of subject. She has
graduated in B.Sc., B.Ed., from
Education
B ,
BS ,
PRESS RELEASES
Glenmark
Pharmaceuticals issues stock options
Outcome of
Compensation Committee Meeting
Glenmark
Pharmaceuticals
The main driver of the
growth expected in the next three years will be the launch of new products.
Eighteen new products will be launched by the end of 2013," daily Ziarul
Financiar (www.zf.ro)
quoted the local unit's director general, Mariana Wencz, as saying.
Glenmark Pharmaceuticals
Romania currently has 17 products in its portfolio.
The Romanian unit posted a
turnover of 30 million lei ($9.3 million/7.0 million euro) in the fiscal year
ended March 2011, Ziarul Financiar said.
Glenmark
Pharmaceuticals' arm gets USFDA approval for Montelukast Sodium tablets
India, November 28 -- Glenmark Pharmaceuticals' - Glenmark Generics
Incorporation, USA, (GGI) the US subsidiary of Glenmark Generics has been
granted tentative approval from United States Food and Drug Administration
(USFDA) for Montelukast Sodium 10 mg tablets, their generic version of
Singulair tablets by Merck.IMS Health has recorded sales of Singulair 10 mg
tablets for the 12 month period ending September 2011, as $3.2 billion. Based
on the tentative approval for Montelukast Sodium tablets, Glenmark Generics
should be able to launch the product upon patent expiry in August
2012.Singulair is indicated for the prophylaxis and chronic treatment of asthma
in adults and pediatric patients 12 months of age and older, for prevention of
exercise-induced bronchoconstriction (EIB) in patients 15 years of age and
older, for the relief of symptoms of seasonal allergic rhinitis in patients 2
years of age and older and perennial allergic rhinitis in patients 6 months of
age and older. Glenmark's current portfolio consists of 73 products authorized
for distribution in the
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records 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.53.57 |
|
|
1 |
Rs.82.97 |
|
Euro |
1 |
Rs.69.89 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
74 |
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.