My opinion is that company has invested significant amount in research, while we see some of the outcome in the form of ryaltris, pulmonary fibrosis drug launch, their diabetes treatment is also being well received apart from the various generic launches in US and most importantly Ichnos.
In the short term what valuations does ichnos get ,licensing deals by ichnos and if it can reduce the 800 cr annual R&d expense. In the long run How many drugs come out of ichnos, what timeframe, mkt size etc too many moving parts.will impact share price.
Also there will be some operational leverage due to better capacity utilisation of munroe and baddi (fabiflu)
Seeking experienced members views on what are the chances of successful capital raising by Ichnos and what is the likely timeframe.
I think current environment with focus of healthcare and low interest rates should aid in the capital raise.
Typical ipo size of a bio tech startup in US is around 100 mn usd. 100 mn usd should be minimum size for ichnos in my opinion since it is platform and significant investment has already been done by promoter company.
How much dilution in ichnos is glenmark able to manage will be moe important to watch.
Am focussed on companies with strong capabilities in R & D. As research / innovation is a key differentiator which is hard to replicate. Of course march end allowed lot of good companies at decent valuations. Currently am invested in natco and lupin also for 33% of my portfolio. For their pipieline of pdts.
Glenmark though doesnt give their pipeline but mgmt did say in q2 call that they expect 10 to 12 AnDA this year. Also the quality of these filings expected to be better and some of them being para iv filing. Their injectable approvals also expected to start in 2qtr . Overall costs to stay low and ebidta margins to increase q0q. Debt reduction of 200 cr in this qtr and next yr to see major deleveraging. With one round of fund raise in dec followed by series c and d next year. One major issue is stagnant US sales .
Lupin concall is already well covered in lupin thread. Natco results are on 12th and its concall will be after that.
Personally my bellief is debt is not as big an issue in glenmark to lead to a 50% discount in PE to peers.
Harsh, the market is still waiting for the stake sale of NCE division. I am also waiting for the same to take a plunge.
I have been tracking this company from last 2 years.
GLENMARK_15012021202128_BSE_NSE_Announcement_15012021.pdf (738.3 KB)
i think Glenmark is seriously reducing its debt , good positive for the company , balance sheet is definitely getting stronger.Hoping for more such steps and re rating based on them
