Glenmark Pharmaceuticals Ltd, one of the leading pharma companies in dermatology segment (which deals with skin infections) has shown an impressive performance for the year ended March'01. While, sales have improved by 32%, operating margins have shown a improvement of more than 500 basis points which is remarkable. However, higher interest and depreciation expenses marred bottomline growth which showed a negative performance of 21%.
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Glenmark is a leader in the dermatology segment which contributes around 40% to its turnover. Last year it acquired Flucort (Lyka brand) to cater to the steroid market in the dermatology segment. The company has also identified the anti-diabetes market as a key growth area in future. A separate marketing force catering specifically to the anti-diabetic market has also been set up, comprising an all-India sales force of 130 medical representatives. In addition, it is also planning to launch insulins shortly. The competition is limited with only four companies catering to the insulin segment.
Glenmark is striving to take a lead in research activities. In a significant development the company has recently filed patent for a new anti-asthma drug, that is currently completing pre-clinical trials. The company has also initiated dialogues with various MNCs for collaborative research projects.
At the current market price of Rs 122, the stock is quoting at 7 times its FY01 earnings. Given the initiatives taken by the company and focus on niche therapeutic segments one can expect the pace of growth to continue in future.
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