Glenmark Pharma stock soars 7.5% as Aurangabad unit clears USFDA inspection

Concerns over an adverse result of the USFDA's inspections had weighed on Glenmark Pharma's stock last week, dragging it close to 7 percent.

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26 Aug, 2025 12:21

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Shares of Glenmark Pharma skyrocketed 7.5 percent in early trade on September 23 after the company's manufacturing Aurangabad facility cleared the US Food and Drug Administration's routine inspection with zero observations.

At 09.28 am, shares of Glenmark Pharma were trading at Rs 1,753 on the NSE. The stock hit an intraday high of Rs 1,759.55, just falling shy of its record high of Rs 1,769.60.

The successful clearance of the formulations manufacturing facility in Aurangabad, which is a key alternative for the company's Goa plant to supply drugs to the US market, comes as a major upside trigger for the stock. Concerns over an adverse result of the USFDA's inspections had also weighed on the stock last week, dragging it close to 7 percent. The USFDA had conducted between the inspection between September 9-20, 2024.

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Meanwhile, brokerage firm Investec also initiated a 'fast long' on the stock. The firm assigned a 'buy' call with a price target of Rs 1,900, implying an upside of over 16 percent from the previous close.

With regulatory clearance of Glenmark’s 'critical' Aurangabad facility, which Investec sees as a near-term catalyst, the brokerage expects the drugmaker's earnings momentum and cash flow generation to remain strong.

In addition, the brokerage sees Glenmark as more of an India/ Rest of the World play as these two markets contribute over 70 percent of the company's EBITDA.

Glenmark Pharma had also reported a more than two-fold jump in its consolidated net profit to Rs 340.2 crore for the June quarter driven by exceptional items, as compared to Rs 37.7 crore in the same period last year.

Its revenue from operations rose by 6.9 percent to Rs 3,244.2 crore, as against Rs 3,036 crore in the same period of the previous fiscal. On the operational front, EBITDA surged 34.5 percent to Rs 588.3 crore in the first quarter, up from Rs 437.3 crore a year ago.

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