Shares of Glenmark Pharmaceuticals Ltd fell as much as 3 per cent in its biggest intraday percentage drop in over a month on lower net profit.

The company had on Thursday reported a 4.2 per cent year-on-year drop in September quarter consolidated net profit at Rs 214.12 crore on lower US sales, still exceeding market expectations.

Net sales grew 2.3 per cent to Rs2,223.44 crore during the quarter from Rs2,173.18 crore a year earlier as higher sales in Europe and India more than offset a decline in US revenue.

“The overall performance was driven by our India, Europe and API (active pharmaceutical ingredients) business. Despite several challenges in the market, India business recorded high single digit growth. The Europe business performed very well during the quarter due to a strong performance by the Western European region,” Glenn Saldanha, Chairman and Managing Director of Glenmark, said in a press release.

Credit Suisse analysts were 'cautious' on Glenmark, with its "overhang of new competition entering in Mupirocin” - an antibiotic used for superficial skin infections.

According to Credit Suisse analysts, net debt increase of Rs 140 crore sequentially is a negative surprise. Sixteen of 32 brokerages covering stock rate the stock as “buy” or higher, 14 “hold” and two “sell” or lower; the median target price is 763 rupees, according to Thomson Reuters data.

(With inputs from Reuters)