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(Reuters) -India’s Gland Pharma, which make injectable versions of generic drugs, reported a 3.1% fall in fourth-quarter profit on Tuesday, weighed down by weaker sales in the U.S., a key region for the company.
The company reported a consolidated net profit of 1.87 billion rupees ($21.9 million) for the quarter ended March 31, compared with 1.92 billion rupees in the year-ago quarter.
Revenue from operations slipped 7.3% to 14.25 billion rupees. Sales from U.S. business, which accounts for 54% of the total, fell 10%.
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KEY CONTEXT
Production setbacks at Cenexi’s facilities in Paris and Belgium for the past two quarters have been weighing on the company’s earnings.
Most of India’s generic drugmakers derive a significant share of revenue from the United States, where lower drug prices due to stiff competition have been weighing on earnings.
Rivals Sun Pharma and Cipla and Dr Reddy’s beat fourth-quarter profit estimates.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBI Price/ Revenue Profit Mean No. of Stock to Div
TDA Sales growth (%) growth (%) rating* analyst price yield
s target** (%)
Gland Pharma 24.59 13.42 NULL 12.43 33.07 Hold 10 0.91 1.36
Zydus Lifesciences 19.60 13.33 3.81 6.10 -1.22 Hold 27 0.87 0.33
Cipla 23.43 15.27 3.69 6.95 -3.45 Buy 33 0.91 0.87
Dr Reddy’s 17.24 11.36 3.10 6.97 0.92 Hold 35 0.96 0.65
Laboratories
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JANUARY TO MARCH STOCK PERFORMANCE
— All data from LSEG
— $1 = 85.5650 Indian rupees
($1 = Indian rupees)
(Reporting by Yagnoseni Das in Bengaluru)
