This BSE500 pharma stock jumps 8.5% in trade; shares have rallied 119% in 12 months

The stock jumped up to 8.5% to hit a high of ₹1,763.90 on the BSE after the company announced that its formulation manufacturing facility located in Chhatrapati Sambhaji Nagar (Aurangabad), Maharashtra, has successfully cleared the US Food and Drug Administration (USFDA) inspection with zero observations. The inspection was conducted from September 9 to September 20, 2024. In conclusion, the USFDA has issued Form 483 with zero observations.

Earlier this month, the pharma company agreed to pay $25 million as part of a settlement with the US Department of Justice regarding a case related to the pricing of a generic drug.

Glenmark Pharmaceuticals Inc, USA, a wholly-owned subsidiary of the Mumbai-based drug maker, has agreed to pay the amount in six installments over five years, with interest on the settlement amount at a rate of 4.25% per annum from May 28, 2024. 

The Civil Division of the US Department of Justice has concluded its False Claims Act and Anti-Kickback Statute investigation in a settlement with Glenmark Pharmaceuticals Inc., USA, it said.

Last year, Glenmark stated that it had entered into a three-year deferred prosecution agreement with the US Department of Justice involving pricing practices by former employees relating to the generic drug pravastatin between 2013 and 2015.

Glenmark Pharmaceuticals Q1 FY25 Results

The pharma company reported an over-two-fold increase in the consolidated net profit to ₹340 crore for the first quarter ended June 30.

The Mumbai-based drug firm had reported a net profit of ₹150 crore in the April-June quarter of the last fiscal.

For the period under review, the firm said its consolidated revenue from operations stood at ₹3,244 crore compared to ₹3,036 crore in the June quarter last year.

"Our strong start to the new financial year reflects our robust revenue growth across key regions and solid operational performance, leading to a significantly improved margin profile," Glenmark Pharmaceuticals Chairman and Managing Director Glenn Saldanha said.

The company's India business continues to excel, outpacing the domestic market with expertise in core therapeutic areas, while Europe built on its FY24 success with further growth in the branded segment, he added.

Glenmark Pharmaceuticals stock performance

Shares of the company have rallied 119% in the past 12 months and more than 416% over the past five years. In comparison, the NIFTY PHARMA index has jumped 54% in a one-year period and 200% in the last five years.