OTC business set to fuel Glenmark’s growth
Glenmark is targeting 12-15 per cent revenue growth in the domestic market in 201819 with focus on select therapies, launch of differentiated products and expansion of over-the- counter (OTC) offering.
Glenmark is ranked 13th in India with annual sales of over ~28 billion and has a market share of 2.4 per cent, according to AIOCD-AWACS, the market research wing of the All India Organisation of Chemists and Druggists. The overall industry-wide sales growth for 2017-18 was 5.7 per cent. With 8.6 per cent growth during the same period, Glenmark was the third-fastest among the top 20 pharmaceutical companies, behind Lupin and Sanofi.
“We are looking to introduce an antihypertension drug and a couple of oncology drugs. We are working on in-licensing opportunities in dermatology and oncology therapies, but those discussions are at an early stage,” said Sujesh Vasudevan, Glenmark’s head of India formulations.
Vasudevan expects the domestic pharma industry to return to growth levels of 10-11 per cent in 2018-19 after a decline in sales in the previous year. Last year, sales fell to single-digits owing to price erosion and issues related to the implementation of the goods and services tax (GST).
The OTC segment will be another lever of growth, Vasudevan said. “Our strategy is to leverage our strength in dermatology. We are looking at switching brands (from prescription to OTC) and build brands in niche areas. Recently, we extended the VWash brand with the launch of sanitary napkins and will introduce two variants of anti-perspirant powders,” Vasudevan said.
Earlier this month, the drugmaker announced the launch of Akynzeo, the first combination drug in India, to treat chemotherapy-induced nausea. The drug is being launched through a licensing agreement with Swiss firm Helsinn. It will help Glenmark strengthen its presence in the therapy segment.
For Glenmark, the focus has been on core therapies (dermatology, oncology, cardiology and anti-diabetes) and building a few strong brands. This has helped in better resource allocation, productivity and margin improvement.
The firm’s domestic business has an operating margin of close to 30 per cent, but it did not divulge additional details. The launch of drugs (without patents) such as teneligliptin (diabetes) and Apremilast (psoriasis) has given the company the firstmover advantage in high-growth segments. The company’s umbrella brands (hypertension drug Telma, skin care powder and cream Candid and cough syrup Ascoril) contribute to around 30 per cent of its domestic sales. In the first nine months of 2017-18, Glenmark’s domestic business reported a revenue of ~19.05 billion and accounted for 28 per cent of the company’s total revenue.