Glenmark falls 3% on sectoral weakness, ANDA nod to drug fails to impress investors

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Shares of Glenmark Pharmaceuticals were lower by over 3 percent intraday on Monday as investors turned wary of most of the pharma stocks, despite business-related positive developments coming in.

The sector has been witnessing immense weakness, following concerns on their profitability in the US on the back of pricing pressures. Results of major firms being dismal are also ailing the sector, and thereby dragging the stocks as well.

On Monday, a major pharmaceutical company, Sun Pharma, declined on the exchanges on the back of poor results. A fall in this stock dragged others in the sector as well, thereby hitting Glenmark.

In fact, Glenmark Pharma has just received an abbreviated new drug application (ANDA) approval for Nebivolol Tablets, a drug used to treat hypertension.

The company’s shares had reacted positively last week as well after it informed investors about a drug approval as well as a credit rating.

The company had told the bourses that it had received ANDA approvals for Olmesartan Medoxomil tablets, which are used to treat high blood pressure. "Glenmark’s Olmesartan Medoxomil Tablets will be manufactured by Glenmark Pharmaceuticals Limited in its manufacturing facility located in Goa, India," the company said.

The pharmaceutical major had also informed the exchanges that S&P Global Ratings reaffirmed its credit rating as ‘BB' as part of their annual review cycle. In addition, they affirmed 'BB' issue rating on the senior unsecured notes issued last year.

A Credit Suisse report last week had highlighted the troubled times for the sector due to increased competition in the US, which is leading to pricing pressure. This, along with muted results was hurting companies back home.

The stock lost over 30 percent in the past one month, while its three-day loss stood at 4 percent. At 10:24 hrs, Glenmark Pharma was quoting at Rs 606.95, down Rs 13.60, or 2.19 percent on the BSE. It touched a 52-week low of Rs 600.00.