Glenmark Pharmaceuticals dips 5% ahead of Q1 results

Shares of Glenmark Pharmaceuticals were trading lower by 5% at Rs 941 on the NSE on reports that the US court has rejected the drug firm's patent plea for Finacea.

The stock hit a intra-day low of Rs 989 so far and has seen a combined 1.1 million shares changed hands on the counter on the NSE and BSE till 12:00 AM.

According to Reuters report, the federal court in Wilmington, Delaware said Glenmark's proposed gel would be absorbed into the skin in a similar way to Finacea, violating Bayer's patent.

“Germany's Bayer had sued Glenmark in 2013 after Glenmark filed an application to market a copycat version of the $95 million drug in the United States,” added report. CLICK HERE TO READ FULL REPORT.

Meanwhile, the drug maker is scheduled to report its first quarter (April-June) numbers on Thursday, July 30, 2015.

Analysts on an average is expected Glenmark Pharma to report 25% year-on-year jump in net profit at Rs 227 crore for the quarter against Rs 181 crore in the corresponding quarter of previous fiscal.

“US generics growth to be better than past few quarters as some launches happened. We expect India/ Latin America to grow well, but Russia/ CIS to be weak despite Inhaler launch. Margins to remain steady”, said analyst at Edelweiss Securities in quarterly preview.

According to Antique Stock Broking, the company’s US performance would improve with a series of Abbreviated New Drug Application (ANDA) approvals over the last two quarters. Performance in emerging markets will remain weak, led by adverse currency movements. Demand-supply mismatch will continue to lead to high growth in Venezuela.

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