Drug-maker Glenmark posted a strong performance in the first quarter, buoyed by its India, US and Latin-American business, and aided further by the launch of new products in the previous year, said Mr Glenn Saldanha, Chairman and Managing Director of Glenmark Pharmaceuticals Ltd.
“Both the generics and specialty business recorded very good growth for the quarter. Our drug discovery programme has also gained significant momentum during the quarter and we continue to remain confident of taking at least one new molecule to the clinics (human trials) every year,” he added.
Glenmark's revenue from its generics business stood at Rs 336 crore in the three months under review, up 28 per cent over Rs 261 crore, clocked in the corresponding period of the previous year.
Its speciality formulation business revenue in the quarter under review stood at Rs 521 crore, as against Rs 408 crore in the corresponding previous quarter, registering a growth of 28 per cent.
Glenmark said it has received $15 million from the US-based Salix Pharmaceuticals to cover Glenmark's risks associated with upgrading its manufacturing facilities to meet Salix's anticipated increased requirements for Crofelemer. Following an agreement between the companies, Salix agreed to pay Glenmark a $21.6-million commitment fee in five equal annual instalments, with the first annual instalment in July 2012 — in view of Glenmark's investment in, and risks associated with, upgrading its manufacturing facilities to increase the production capacity of crofelemer.
The commitment fee is in addition to the compound purchase price payable by Salix to Glenmark. After remitting the advance of $15 million to Glenmark, Salix will pay Glenmark the remaining $6.6 million of the commitment fee in five equal annual instalments, the company said.