|
Glenmark strengthens its strategies towards moving up the value chain with branded and specialty medicines
|
|
Shardul Nautiyal, Mumbai
May 03 , 2023
|
|
|
Mumbai-based Glenmark Pharmaceuticals Ltd. is strengthening its strategy of moving up the value chain by developing specialty medicines and high-end innovation in addition to complex generics, according to the company's official documents.
In 2020, Glenmark Pharma launched its first global branded specialty medicine, Ryaltris, an intranasal spray for the treatment of seasonal allergic rhinitis. Ryaltris is a unique combination of two drugs, which works by reducing the effect of histamine, and inhibiting inflammation in the nasal passage. The product was approved by the US Food and Drug Administration (FDA) in 2022 and has since been launched in more than 23 countries.
Glenmark Pharma and its fully owned US subsidiary Ichnos Sciences together have a robust pipeline of innovative molecules, in various stages of clinical development across oncology and immunology.
Glenmark Pharma has been a prominent player in the Indian pharmaceutical industry for four and a half decades with a strong focus on developing branded and generic products in dermatology, respiratory and oncology. Over the past decades, Glenmark has also made significant efforts to move up the value chain by developing specialty medicines and high end innovation in addition to complex generics.
Glenmark Pharma began its operations in India before expanding overseas, with a significant contribution from the US market. To establish a notable presence in the highly competitive US generics market, the company's strategy included securing access to affordable active pharmaceutical ingredients (APIs), leading to its foray into the API business.
Over the years, the API business started getting external customers as well and established itself as one of the leading API players out of India. After the API business achieved significant scale, Glenmark decided to hive it off into a separate subsidiary (Glenmark Life Sciences) to unlock its full potential value.
In 2019, Glenmark Life Sciences was launched as a separate entity with a focus on developing and manufacturing high-quality active pharmaceutical ingredients for pharmaceutical companies worldwide. Today, Glenmark Life Sciences independently drives 70% of its business by catering to the needs of other pharmaceutical players. The company was listed on Indian stock exchanges in 2021. Today it has a market cap of around Rs. 6,000 crore and revenues of Rs. 2,500 crore.
Glenmark Pharma has focused on building global brands and moving up the value chain by developing specialty medicines like Ryaltris, innovative medicines and complex generics, while Glenmark Life Sciences is focused on scaling up its API business, developing complex API technologies/platforms, and growing its CDMO services.
While both Glenmark Pharma and Glenmark Life Sciences are part of the same group, they operate independently with different growth strategies and objectives.
Glenmark Pharma's portfolio includes a range of medicines in key therapy areas such as respiratory, oncology, and dermatology. The company's respiratory portfolio includes drugs for asthma, chronic obstructive pulmonary disease (COPD), and allergic rhinitis. In the oncology segment, the company offers treatments for breast cancer, lung cancer, and pancreatic cancer, among others. In dermatology, Glenmark Pharma has medicines for psoriasis, acne, and eczema. Glenmark Pharma’s Consumer Care business division is engaged in developing and marketing over-the-counter (OTC) products in India and has some of the leading brands, including candid powder, candid cream, scalpe and LaShield.
Glenmark Life Sciences will also continue to focus on API and expand its contract development and manufacturing (CDMO) business, leveraging its expertise to drive growth in these areas.
“As a part of its long term growth strategy, Glenmark Life Sciences has outlined plans to further reduce its dependence on Glenmark Pharma to 15% to 20% over the next 3 to 5 years. Recently, there have been conversations about Glenmark Pharma selling its stake in Glenmark Life Sciences. The stake sale is a procedural requirement as per the listing guidelines. Glenmark Pharma's shareholding in Glenmark Life Sciences needs to come down to 75% no later than August 2024. In addition to being a norm of the Securities and Exchange Board of India, the move is seen as a strategic approach to build a separate roadmap away from Glenmark Life Sciences,” as per company’s latest investor presentations.
|
|
|
|
|
|
|
|
TOPICS
|
Shanghai-based Hualian Pharmaceutical Machinery Company Limited, a family-run enterprise with roots going back to 1986, ...
|
|
|
|
|