Fitch Affirms Glenmark Pharmaceuticals at 'BB'; Outlook Stable
Fitch Ratings has affirmed India based Glenmark Pharmaceuticals Ltd's Long-Term Issuer Default Rating (IDR) at 'BB'. The Outlook is Stable. The agency also affirmed the rating on Glenmark's USD200 million 4.50% senior unsecured notes due 2021 at 'BB'.
Glenmark's rating incorporates its geographic diversification and strong track record of regulatory compliance, which help to mitigate business risks arising from its small size relative to other global generic drug makers. The rating also reflects Glenmark's healthy product pipeline, which will support revenue and profitability despite continued pricing pressure in the US generic pharmaceutical market. Glenmark has adequate in-house R&D capabilities and financial flexibility to support its novel drug development programme.
The Stable Outlook reflects Fitch's expectation that new product launches and cost efficiency measures will support Glenmark's profitability amid pricing pressure in the US. Free cash generation will be largely neutral after a moderate level of capex and stable dividend payout, limiting any material improvement in leverage over the medium term.
Shares of GLENMARK PHARMACEUTICALS LTD. was last trading in BSE at Rs.571.5 as compared to the previous close of Rs. 581.7. The total number of shares traded during the day was 43965 in over 1048 trades.
The stock hit an intraday high of Rs. 587 and intraday low of 565.6. The net turnover during the day was Rs. 25339938.