Nandan Madhiwalla of Punctilious One presented his investment thesis on Glenmark Pharmaceuticals (India: GLENMARK) at Asian Investing Summit 2023.

Thesis summary:

Glenmark Pharmaceuticals recently traded at a market cap of $1.7 billion, with trailing revenue of $1.5 billion and a trailing P/E multiple of 14x.

Glenmark operates in three segments: India branded generics, active pharma ingredients (83% stake in Glenmark Life Science), and global generics (North America, Europe, ROW).

It also has a biopharma innovation segment, Ichanos Science, which does not have significant revenue. Ichanos has received close to half of Glenmark’s R&D budget over the last several years. The segment has three oncology assets awaiting proof-of-concept data. Glenmark intends to license out the pipeline and slowly reduce its investments in Ichanos. The company plans to focus on growing its branded generics markets along with (separately listed) active pharma ingredients.

Capital allocation is changing positively, away from risky innovation R&D and low return on capital in US generics toward branded generics and debt reduction.

Glenmark continues to outgrow the India branded generics market, its most profitable segment. The Indian business offers significant room for growth, with Glenmark making an aggressive push into chronic therapy areas.

The full session is available exclusively to members of MOI Global.

Members, log in below to access the full session.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

About the instructor:

Nandan Madhiwalla is the founder of Punctilious One and has more than a decade of experience in the investment industry. He has previously worked as a research analyst with PPFAS Mutual Fund – Mumbai, Roosevelt Investment Group and Lebenthal Asset Management in New York. He holds a Bachelor’s degree in Computer Science from D.J.Sanghvi School of Engineering, Mumbai University and a Master’s degree in Financial Engineering from NYU Tandon School of Engineering and is also a CFA Charterholder.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.