Glenmark Pharmaceuticals stock falls
Glenmark's stock closed at Rs.1,164.80, down Rs.60.55, or 4.94% on the Bombay Stock Exchange on Monday, 24 Aug night. This fall came after the shares of Glenmark Pharma plunged more than 6% on Monday when the brokerage arm of Bank of America Merrill Lynch (BoAML) downgraded the stock to underperform and revised the target price to Rs.1,200 per share.
Glenmark Pharmaceuticals is an Indian company headquartered in Mumbai, with four manufacturing facilities in the states of Maharashtra, Goa, Himachal Pradesh and Gujarat in India. It has also expanded to 95 other countries including the USA and the UK.
The United States Food & Drug Administration (USFDA) gave the go ahead for Drospirenone and Ethinyl Estradiol tablets USP, 3 mg/0.02 mg developed by Glenmark Pharmaceuticals Inc.,USA. The company's stock prices soared immediately after the company released this information, reaching a high of Rs.1,187 on the Bombay Stock Exchange. Glenmark plans to start shipping these two new drugs immediately.
The newly approved drugs are actually the generic version of Yaz tablets. Yaz tablet is a birth control pill that combines estrogen and progesterone to prevent pregnancy by preventing ovulation. This tablet can also be used to treat acne in females above the age of 14 years or even complaints like symptoms of premenstrual dysphoric disorder, such as anxiety, depression, irritability, trouble concentrating etc.
Glenmark expects USFDA approval for 4-6 products during this fiscal year; 8 have been approved already. Among them is Teneligliptin, a new third generation oral anti-diabetic agent which can be used to manage Type 2 Diabetes Mellitus, which Glenmark is marketing under two brands, Ziten and Ziten Plus. At Rs.19.90 per tablet, it offers a cheaper treatment for a diabetic patient using Gliptin tablets.
Glenmark looks to launch around 10 products in India this year and will be focussing on key areas like the dermatology, diabetes, cardiology and respiratory segments. India makes up 26% of the company's sales; 31% comes from USA, which is Glenmark's largest market. Among the four categories mentioned, Glenmark will be taking special interest in dermatology. It will launch two drugs for oncology soon.
Glenmark got listed on the stock exchange in 2000 and has since not looked back, going on to be chosen 'Best Company Across Emerging Markets', 2011 and 'Best Pharma Company in the World – SME', 2008 by SCRIP, a reputed pharma magazine.