Shares of Glenmark Pharma extended uptrend to the second consecutive session, surging around 10 percent on February 16 as the company's positive commentary cheered investors.
At 12.53 pm, Glenmark Pharma was trading at Rs 888 on the NSE.
In the previous session, the stock rose nearly 2 percent, recouping most of the losses from the earlier after the company posted a net loss of Rs 330.8 crore for the December quarter.
The company's Q3 earnings remained under pressure due to several one-off expenses on account of a one‐time impact on Glenmark's India business, a forex loss of Rs 16.2 crore, hyper inflationary impact of Rs 48 crore in Argentina and an exceptional item related to remediation costs of Rs 76.7 crore for manufacturing sites in India and the US.
The management comments hint towards better times for the drug manufacturer. The management expects its EBITDA to improve along with consistent improvement in margins in the coming quarter.
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The management's bullishness is attributed to the production from its newly acquired Monroe site, along with a ramp-up of products from this facility. Glenmark expects two prodcuts from the site to get commercialised soon.
The company also plans to launch two nasal sprays in FY25 and anticipates sales worth Rs 8 crore from the nasal spray Rylatris next year, which is a significant product for the company, sitting at its peak. Ryaltris is also pegged as the major driver for the company's margins.
On that account, Glenmark expects respiratory and injectables to be the major contributors in FY25. The company also aims to turn cash positive by the end of the current fiscal.
The management also expects to Rs 5,000 crore from its stake in arm Glenmark Life Sciences.
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