Annual Report - Glenmark

Glenmark Pharmaceuticals Limited
are filing DMFs in the US and EU to
supply API to companies in these
markets.
At Glenmark, we view the API business
from a two-way perspective. Firstly, API
manufacture serves as a backward
integration into our formulation-centric
value chain, which helps us rationalise
cost and get increasingly competitive.
Secondly, API products are not intended
for captive use alone but are marketed
to users in India and abroad so that they
represent a standalone business for the
company.
In view of this, the API division gives us a
competitive cost foundation that
enables our formulations to compete in
the domestic and global markets, in
addition to enhancing our revenues.
What are the significant strengths of
the Company
Primarily, it is our responsiveness to the
external environment. This is reflected
in our ability to rapidly evolve from
being an India-centric formulations
company to one that is diversified with
a growing presence in APIs, a focused
and balanced R&D initiative which has
already started paying rich dividends in
the form of licensing deal payments,
and a presence in over 70 countries
across the globe including the regulated
markets of the EU and the USA.
Moreover, Glenmark has always believed
in building on its strengths, which is
reflected in the investments it has made
in its people resulting in a strong
management and scientific team.
What are the significant
opportunities ahead of the
Company
Going forward, the Company is now set
to benefit significantly from efforts in
three areas that will unfold in the short
to medium term.
Partnering opportunities for its
rapidly developing NCE pipeline that
commenced with GRC 3886 and which
now includes a lead compound for
diabetes, several programmes for
identifying PDE-4 inhibitors for other
inflammatory conditions, etc. The
Company has set a target of having 4-6
compounds in clinical trials within 3
years.
Growth in revenues from the
regulated market generic business that
is rapidly taking shape with the settingup
of a commercial sales' front-end in
the US, a subsidiary in the UK and the
acquisition of a company in Brazil
during the year under review.
Acquisitions in select growth markets
across the world to establish sales and
marketing front-ends for generics and
branded generics.
In addition, the Company is also
targeting significant growth in its
branded generic formulations business
in around 70 countries across the globe
[including India] as well as in the API
business. The latter will also benefit from
the rapidly developing pipeline of DMFs
starting with the 13 that have been filed
till March 2005.
How does the Company expect to
significantly enhance shareholder
value
Glenmark is adding significant value to
the shareholders by delivering stellar
growth in revenues and profits year on
year. Correspondingly, there is a strong
commitment to mitigate risks by
establishing a growing presence in
several markets and business segments
that will help improve asset productivity
and allow quicker returns on
investment. Our firm commitment to
develop a pipeline of NCE compounds
will provide significant upside to the
shareholders in the years to come. We
are of the opinion that the GATT
challenge of 2005 is not going to pose a
threat until 2008-10 by which time our
NCE strategy will start delivering results.
As a result, our various initiatives,
coupled with our integration and active
risk management, will not only help us
multiply our revenues but also buffer
our profits, resulting in superior returns
to our shareholders.
Agenda for 2005-06
Build an ANDA pipeline of 22-24 products,
including products developed in partnership
Obtain regulatory approval for the Goa facility and
commence manufacture of formulations for sale in
regulated markets
Identify a European partner for GRC 3886
Take two NCE molecules into Phase I clinical trials
and seek licensing/co-development alliances for them
Deepen the domestic market formulation focus by
introducing products that will replace existing
therapies
Strengthen systems and processes, increase
efficiencies and reduce costs
Look for acquisitions to accelerate growth and
global reach
15
Annual Report 2004-2005