Glenmark Pharmaceuticals : Q2FY 2025-26

About this update from Glenmark Pharmaceuticals Limited

"Glenmark Pharmaceuticals Limited Q2 FY '26 Earnings Conference Call" November 17, 2025 Management: Mr. Glenn Saldanha - Chairman and Managing Director - Glenmark Pharmaceuticals Limited Mr. Anurag Mantri - Executive Director and Global Chief Financial Officer - Glenmark Pharmaceuticals Limited Mr. Utkarsh Gandhi - Senior General Manager, Investor Relations - Glenmark Pharmaceuticals Limited Moderator: Good morning, ladies and gentlemen. Welcome to the Q2 FY '26 Earnings Conference Call of Glenmark Pharmaceuticals Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Utkarsh Gandhi, Senior General Manager, Investor Relations for Glenmark Pharmaceuticals. Thank you, and over to you, sir. Utkarsh Gandhi: Thank you, Lizanne. Good morning, everyone, and welcome to the Q2 FY '26 Earnings Conference Call of Glenmark Pharmaceuticals Limited. Before we start the call, a quick reminder to everyone that the information, statements and analysis discussed during this call describing the company's or affiliates' objectives, projections and estimates are forward-looking statements based on current expectations, forecasts and assumptions, which are subject to risks and uncertainties, which could cause the actual outcomes to differ materially and no representation of warranty either expressed or implied is provided in relation to this document. The company undertakes no obligation to update or revise forward-looking statements, whether because of new information, future events or otherwise. From the management team, we have Mr. Glenn Saldanha, Chairman and Managing Director; and Mr. Anurag Mantri, Executive Director and Global CFO. Like always, I'll provide a brief update on the overall business for the second quarter and then hand it over to Glenn and Anurag for their opening comments on the current and future potential of the company. Following that, we'll open the floor up for Q&A. For the -- in terms of our overall performance for the second quarter, Glenmark's consolidated revenue from operations was at INR60,469 million as against INR34,338 million in the corresponding quarter last year, recording a Y-o-Y growth of 76%. For the 6 months ending September 30, 2025, Glenmark's consolidated revenue was INR93,113 million as against INR66,780 million, recording an increase of 39.4%. In terms of our regional performance, starting off with India, sales for the formulation business for the second quarter of FY '26 were INR1,650 million as against INR12,817 million in the corresponding quarter last year, recording a decline of 87%. Glenmark has a unique legacy 3-tier distribution system in India like peer companies, and there was increasing uncertainty within the distribution channel following the announcement of the GST regime change on August 15. And during the second quarter, Glenmark's primary sales were affected due to onetime reduction of distributor inventory levels, some postponement of orders and impact of freight and reverse logistics, all in anticipation of the GST regime change. Growth was also impacted due to the base effect of the discontinued tail-end/low-margin products. The company expects reported growth for India business to be in line with the secondary sales growth starting the third quarter. In terms of secondary sales growth for the second quarter, Glenmark continued to outperform the Indian pharma market. As per IQVIA, Glenmark's India formulation business recorded a growth of 10.8% in the second quarter and 11.4% as per MAT September compared to the overall market growth of 6.4% and 7.3%, respectively. In terms of its core therapeutic areas, Glenmark continues to outperform the overall market as per the IQVIA secondary data. We are now ranked 13th with a market share of 2.3%. We have, in fact, now added a couple of additional brands to the IPM top 300. We now have 11 brands in the IPM top 300 as of MAT September. And in terms of our key core therapeutic areas, we are ranked second in dermatology, third in respiratory and fourth in the cardiac segment as per the IQVIA MAT September data. In terms of some of our key launches in India, so starting off with TEVIMBRA, BRUKINSA. So as we had announced earlier, Glenmark had launched both these products under their -- TEVIMBRA and BRUKINSA in partnership with BeOne in the first quarter. And these 2 brands have seen a very strong uptake in the market in a short period of time as a differentiated treatment option available across multiple solid and hematological tumors. The company expects these 2 brands to further gain momentum and meaningfully contribute to the India business growth over the next 2, 3 years. LIRAFIT, we continue to see strong market share in LIRAFIT and Liraglutide market. And as announced earlier, we plan to launch other GLP-1 agonist as well. JABRYUS, which was partnered with Pfizer, and we launched the product in Jan 2024. And again, as a novel treatment for moderate to severe atopic dermatitis, JABRYUS has been well received by dermatologists overall. Our Consumer Care business recorded secondary sales of 10%. Candid Powder continues to hold leading share in the market as per the IQVIA data. Our Scalpe portfolio delivered a very strong growth during the second quarter and some of the other direct-to-consumer brands also performed well. We recently transferred the India's GCC business into a wholly owned subsidiary called Glenmark Consumer Care Limited to bring better focus to the India Consumer Care franchise. Moving on to North America. The North America business recorded sales of INR44,656 million for the second quarter as against INR7,405 million for the second quarter of last year. Net of the out-licensing income for ISB 2001 deal, the core business growth in North America for the second quarter was 7.4%. In the second quarter, we launched 2 very interesting products, Micafungin injection and Eribulin Mesylate injection. We now have more than 10 injectable products launched in the U.S. market and continue to build a strong institutional business franchise in the region. We are obviously leveraging our strong development capability in respiratory are awaiting approval for 2 ANDAs for the generic nasal sprays, which we have filed earlier. And we are also -- we have -- as announced earlier, we have filed the ANDA for generic Flovent 44mcg, and we are working on additional filings in the respiratory area as well. We plan to file 2 ANDAs in the upcoming quarter and launch 3 to 4 products each quarter going forward. Glenmark's marketing portfolio as of September has 53 applications pending at various stages of the approval process, of which 25 are Para IV. Moving on to Europe. Glenmark's Europe operations for the second quarter was at INR7,460 million as against INR6,874 million, recording a growth of 8.5%. Glenmark's European operations returned to growth in the second quarter, driven by a robust uptick of new product launches. Glenmark continued to perform overall -- outperform the overall pharma market in key branded markets like the Central and Eastern European countries. The Western European business also recorded double-digit growth and branded respiratory portfolio continues to have a strong trajectory in the region. So as mentioned earlier, again, we are focused on sustaining increasing contribution from the branded markets in the branded portfolio in Europe. We now have 7 respiratory products, which have been commercialized across the region, and we are awaiting launch of additional 2, 3 products over the next 18 months. Glenmark also launched WINLEVI in the U.K. and initial response has been very positive, and we will be launching it in other European markets as well once we get the final approval. On the emerging markets, for the second quarter of FY '26, revenue from the emerging markets was INR6,585 million as against INR7,041 million, recording a decline of 6.5%. Growth in the emerging markets continued to be impacted by geopolitical uncertainties, which resulted in lower uptake in certain markets in Latin America and Middle East Africa. However, our Russia business did well. As per IQVIA MAT September data, Glenmark's Russia business recorded secondary sales growth of 8.1%. RYALTRIS continues to do well in Russia and gain further share. And we are continue to be ranked amongst the leading companies in dermatology and expectorant market in Russia. In Latin America, as mentioned, we witnessed some subdued secondary sales during the quarter. We have launched multiple respiratory -- differentiated respiratory products, including RYALTRIS in markets like Mexico and expect stronger performance in the forthcoming quarters. In Middle East, Africa also growth was impacted due to lower uptake. However, again, RYALTRIS as a brand continues to do well in the region. And in other markets where it has been launched in the last few quarters, we have seen good uptake for this product. APAC region, we did well. We recorded double-digit growth during the quarter. And again, respiratory and dermatology, in both areas, we continue to do -- perform well. RYALTRIS, again, will be a key growth driver and will be launched in additional markets like China and Thailand by our partners in the forthcoming quarters. Quickly giving an update on our global innovative specialty portfolio. So RYALTRIS, as mentioned, marketing applications for RYALTRIS have been filed in more than 90 markets. The product is now commercialized in 49 markets. Recently, we announced that our partner, Grand Pharma, had secured approval for RYALTRIS in China. We are working with Grand Pharma to launch the product in the first half of the coming fiscal year. And our partner in Thailand, Organon is also preparing to launch RYALTRIS in the fourth quarter of this year. WINLEVI so as mentioned, company has launched WINLEVI in the U.K. We are expecting approval in other European markets as well. And as soon as we get the approval, we'll launch the product. Our partner, Cosmo received a positive CHMP opinion in August 2025. And WINLEVI is also under regulatory review in South Africa. QiNHAYO, which is Envafolimab, we have already filed 14 applications for QiNHAYO and first commercial launch expected towards the end of this year. We have received authorization from regulatory agencies for -- to supply Envafolimab in Kenya. We also initiated a global multicenter Phase III trial in the neo-adjuvant/adjuvant NSCLC setting. Trastuzumab Rezetecan -- so in Q2, we announced an exclusive license and collaboration agreement with Hengrui Pharma for Trastuzumab Rezetecan, which is a next-generation HER2 targeting ADC. Glenmark has gained rights to register, develop and commercialize the ADC in several emerging markets. This is Hengrui's self-developed HER2-targeting ADC. It was approved in China for treatment of HER2-positive non-small cell lung cancer. It is also undergoing other clinical trials in HER2-targeted solid tumors. Finally, on IGI. So a quick update on the various IGI pipeline. So ISB 2001. So obviously, the one big update was that post our deal announcement in July, we got the approval from the U.S. FTC and received the upfront payment of $700 million in September. As mentioned earlier, we are eligible to receive up to $1.225 billion in development, regulatory and commercial milestones along with double-digit net sales royalties. And Glenmark Pharma will be leading the commercialization across emerging markets. ISB 2301 is the next molecule in our IGI pipeline. This is a first-in-class multi-specific NK cell engager developed for solid tumors and the first program from IGI's IMMUNITE platform. The key update here is the clinical candidate was selected in October and the program has entered IND-enabling studies. And finally, on immunology portfolio, ISB 880, which is the IL-1RAP antagonist, which was licensed to Almirall. Recently, Almirall announced that ISB 880 or LAD191, as they call it, has moved into Phase II studies in Hidradenitis Suppurativa, which is a large dermatology indication. And ISB 880 -- sorry, ISB 830-X8, which is STAR-310. This is the OX40 antagonist licensed to Astria. Recently, Phase I trial was initiated by Astria, and they presented initial data at the European Academy of Dermatology and Neurology Conference in September 2025 as a late-breaking oral presentation. Based on the initial results, the molecule looks positive in terms of its efficacy as well as safety profile. And there is potential for infrequent maintenance dosing, which is a key update there. So I think with that, I will hand it over to Glenn for his opening comments. Over to you.

View stock analysis, news, and events for Glenmark Pharmaceuticals Limited