Glenmark Pharma is one of the fastest growing companies in the Indian pharma market with a growth of 31% as against industry growth rate of around 9%. The company is one of the key players in the dermatology segment and commands strong brand equity.
The dermatology segment currently, contributes around 40% of the company’s turnover. The company’s ‘Candid’ range of products command strong brand value in the segment. Besides, last year it acquired ‘Flucort’ (Lyka brand) to cater to the steroid market in the dermatology segment. The ‘Flucort’ range of products stabilized in the market only in the second half of FY01 and is expected to contribute significantly in the current year. The dermatology segment is growing at 13% p.a. and other major players in the segment include Glaxo and Fulford.
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 been set up, comprising an all-India sales force of 130 medical representatives. In addition, it is also planning to launch insulin’s shortly. The competition in the insulin segment is limited with only four major players currently in the picture. Four of the twelve products launched by the company last year, were in the anti-diabetes market.
Glenmark is speeding up its 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.
Glenmark is exploring all the possible opportunities in the lucrative overseas generic markets. The company recently commissioned a new manufacturing facility for exports, which meets US FDA norms. The strategy for growth in the domestic market is to create a dominant position with a focused approach in high growth dermatology, diabetes, and gynecology segments.
At the current market price of Rs 110, the stock is trading at 6.5 times its FY01 earnings. It seems that the company has all the right plans in place to maintain its growth trajectory in future. However, the company will have to meet with stiff competition with established pharma majors in all its area of operations. In that case what amount of company’s plans will actually meet success is a question which only time would tell?
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