homebusiness Newscompanies NewsGlenmark Pharma confident of resolving regulatory issues, paring debt
Glenmark Pharma confident of resolving regulatory issues, paring debt
While Glenmark's Goa unit has received a warning letter from the USFDA, the regulator has placed its Baddi unit under an import alert.
Drugmaker Glenmark Pharmaceuticals is confident that some of the remediation issues pertaining to its plants should get resolved over a period of time.
In an interaction with CNBC-TV18, Glenmark's Executive Director and Global CFO VS Mani said that the company is doing its best in terms of remediation, adding that some of that should get resolved.
"We are actually working on the remediation side, both at the Monroe plant as well as our India sites, including Baddi as well. So I think last quarter also there were quite a few remediation efforts done even in next quarter it is going on. So I think we'll take it as it comes," he said.
Glenmark's manufacturing facility in Monroe, North Carolina, US, received an OAI status from the US Food and Drug Administration in August last year. An OAI classification means that the regulator may withhold the approval of any pending product application or supplements filed from the concerned facility till the outstanding observations are resolved.
While Glenmark's Goa unit has received a warning letter from the USFDA, the regulator has placed its Baddi unit under an import alert.
For the December quarter, Glenmark reduced its net debt by Rs 100 crore compared to the September quarter, bringing down the overall net debt to Rs 2,615 crore. Mani said that 19-20 percent growth will help the company pay down debt. "Even if you look at it last quarter, we have done about Rs 100 crore in our net debt. So while we may not put a number to that, we definitely are confident we'll reduce it further," he said.
Glenmark aims to have revenue growth of 6-8 percent during the year and sustain EBITDA margin levels of 19 percent, which was what it reported in the previous financial year.
US sales for the quarter grew 11 percent from the previous quarter to cross $100 million and Mani expects the figure to sustain over a sequential basis.
Other Key Takeaways:
- March quarter should see a turnover of Rs 3,400 crore or higher
- Expect 10-12 percent growth for the next financial year and margin of around 19 percent
- Do not see the need to divest more brands in India
(Edited by : Hormaz Fatakia)
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