Glenmark to list generics subsidiary in FY10

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Glenmark to list generics subsidiary in FY10

Glenmark has a tight schedule to keep before the financial year ends. For one, it wants to list its generics subsidiary, Glenmark Generics. Secondly, it wants to close at least one research and development (R&D) deal.

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Glenmark has a tight schedule to keep before the financial year ends. For one, it wants to list its generics subsidiary, Glenmark Generics. Secondly, it wants to close at least one research and development (R&D) deal. CNBC-TV18's Priyanka Ghosh reports.

The next few months promise to be busy ones for drug-major Glenmark. Even as market analysts turn skeptical about the initial public offer (IPO) pipeline that has built up in the past few months across sectors, Glenmark believes it will pull off its Rs 575 crore issue of its generics subsidiary Glenmark Generics with ease.

Glenn Saldanha, Managing Director and Chief Executive Officer of Glenmark, said, "We would IPO the subsidiary, we have said that repeatedly and it's only a matter of time, depending on markets pan out we will time it in such a way that we can get it out at the right time. We are trying to get it out this financial year."

The IPO is not the only engagement on the calendar. Glenmark is scouting for a potential R&D out-licensing deal-a deal that could bring in milestone payments of at least USD 35-40 million. The company says it is talking to two companies, and a deal may be signed, sealed and delivered by the year-end.

"We are trying to conclude the deal by the end of this year. We are working to that timeline right now. Melogliptin is the lead molecule but we have several other molecules which are in advance stages of discussion," said Saldanha.

Debt reduction remains high on Glenmark's agenda. The company says it will reduce its debt, which currently stands at Rs 1,650 crore, by at least Rs 300 crore by the end of this fiscal. However, it also clarified that apart from the Glenmark Genercis IPO, it is not looking at any other fund raising plans over the next two quarters.