Fitch Ratings, as part of their annual review cycle, has reaffirmed Glenmark Pharmaceuticals Ltd's credit rating at 'BB', outlook 'stable'. This credit rating assigned to Glenmark is much higher than some of its global peers as mentioned in the enclosed report. The agency also affirmed the rating on Company's USD200 million 4.50% senior unsecured notes issued in 2016 at 'BB'. The notes are rated at the same level as the IDR because they constitute Glenmark's direct and senior unsecured obligations.
Glenmark's geographic diversification and strong record of regulatory compliance help to mitigate business risks arising from its small size and support its rating relative to other larger global generic drug makers. The rating also factors in Glenmark's adequate product pipeline, which will support revenue and profitability despite continued pricing pressure in the US generic pharmaceutical market. Glenmark's measured approach and derisking strategies in its novel drug development programme will help to preserve its financial flexibility from the inherent risks.
The Stable Outlook reflects Fitch's expectation that new product launches in the US will support Glenmark's profitability despite sustained pricing pressure. This, coupled with continued growth in other markets, will lead to a moderate increase in EBITDA. Improvement in leverage will however be limited as we expect free cash generation to be marginally negative after considering a moderate level of investments over the medium term.
Shares of GLENMARK PHARMACEUTICALS LTD. was last trading in BSE at Rs.451.35 as compared to the previous close of Rs. 445.5. The total number of shares traded during the day was 66789 in over 1747 trades.
The stock hit an intraday high of Rs. 458.65 and intraday low of 449.4. The net turnover during the day was Rs. 30326148.