Glenmark Pharma Q1 PAT Down on US Litigation

New Delhi, Aug 14 (PTI) Glenmark Pharmaceuticals Ltd on Thursday reported an 86 per cent drop in consolidated profit after tax to Rs 46.97 crore in the first quarter ended June 30, 2025, impacted by a provision for settling a litigation in the US.

The company had posted a consolidated profit after tax (PAT) of Rs 340.24 crore in the corresponding period of the last fiscal, Glenmark Pharmaceuticals Ltd said in a regulatory filing.

Consolidated total revenue from operations in the first quarter stood at Rs 3,264.44 crore as against Rs 3,244.19 crore in the same period a year ago, it added.

Glenmark Pharmaceuticals said it has made a provision for an estimated Rs 323.23 crore (USD 37.75 million) for its agreement to enter into settlement with putative direct purchaser class in antitrust and consumer protection lawsuits in the US and charged the same amount to profit and loss account as an exceptional item in the financial result for the quarter ended June 30, 2025.

The litigations are over allegations of price-fixing, market allocation, and related anticompetitive conduct and plaintiffs include putative classes of direct purchasers, endpayers, and indirect purchasers of generic drugs, as well as numerous private, direct-action plaintiffs, it added.

Although the settlement is subject to approval by the court overseeing the litigation, Glenmark said the settlement makes clear that the company "denies each and everyone of its allegation against it and the settlement is not on the basis of Glenmark having considered or admitted any liability or illegality".

Total expenses in the quarter under review were marginally higher at Rs 2,872.07 crore as compared to Rs 2,813.34 crore in the year-ago period, the company said.

Commenting on the performance, Glenmark Pharmaceuticals Chairman & Managing Director Glenn Saldanha said, "In Q1FY26, our US business delivered QoQ growth, driven by a combination of injectable and partnered products launches. Our Europe and Emerging markets businesses have recorded over 25 per cent CAGR and more than 10 per cent CAGR respectively over the last three years, and we expect the region to deliver a double-digit growth from the second quarter onwards."

The company said sales from the formulation business in India in Q1FY26 were at Rs 1,239.9 crore as against Rs 1,196.2 crore in the corresponding quarter last fiscal.

North America business registered revenue of Rs 778 crore in the quarter ended June 30, 2025. In Europe, revenue for the first quarter of FY26 was Rs 667.8 crore as against Rs 695.7 crore, it added.

On the outlook, Saldanha said, "We remain confident in our strategy to drive growth across our markets, while advancing our branded, speciality, and innovative products to deliver long-term value for our stakeholders.