Dear Stakeholders,
I am pleased to present to you our third Integrated Annual Report,
detailing Glenmark's transformative journey through FY 2024 – a year defined by
resilience and strategic growth amidst global challenges. Our message, “Strengthening
for Success, Innovating for Impact” encapsulates our commitment to sustainable
growth, operational excellence and ground-breaking innovation. The fiscal year unfolded
amidst challenging macroeconomic conditions, marked by geo-political uncertainty and
persistent inflationary pressures. Despite these hurdles, the global pharmaceutical sector
continued to thrive. This is evidenced by the industry's decisive performance, in the
past financial year.
Financial and Business Performance Highlights
FY 2024 marked a pivotal year of transformation for Glenmark, anchored
by strategic and financial initiatives, aimed at a sustainable business model focused on
growth and profitability. A significant milestone was the successful divestment of a
majority stake in Glenmark Life Sciences, significantly strengthening our financial
position and resulting in a robust net cash-positive outcome. This strategic move not only
bolstered liquidity but also sharpened our focus on core operations.
Amidst the complexities of the global market, our branded markets in
Europe and other international regions emerged as pillars of growth. They demonstrated
robust expansion, effectively balancing the challenges encountered in the U.S. market. Our
proactive strategies in these regions revitalized our growth momentum and underscored our
resilience in adapting to varying market dynamics.
underscoring our strategic investments and market penetration efforts
in these regions.
In FY 2024, Glenmark achieved a revenue of
INR 1,18,131 Mn, marking a 2% year-on-year growth trajectory. This
achievement reflects our strategic agility and strong market positioning, despite the
one-time impact on sales due to changes in our distribution model in India during Q3 FY
2024. Investments in R&D totalled INR 10,830 Mn, constituting 9.2% of our sales (INR
12,258 Mn including capEx and discontinued operations) as compared to the INR 11,342 Mn
(INR 12,500 Mn including capEx and discontinued operations).This underscores our
commitment towards profitable growth and ROI-focused investments in therapeutic
innovations addressing global healthcare needs.
Commitment to Excellence
Building on our 47-year legacy, Glenmark continues to set the standard
in the pharmaceutical industry, driven by our steadfast commitment to innovation and
excellence. Our dedication to focus on key therapeutic areas such as Respiratory,
Dermatology and Oncology has resulted in significant advancements, reinforced by strategic
partnerships and groundbreaking product launches that redefine patient care and treatment
outcomes.
Market Leadership and Strategic Milestones
Our emphasis on branded markets is yielding impressive results. Branded
markets constitute approximately 60% of our overall sales, up from 55% in FY 2019. With a
strategic goal to increase this contribution to around 70% over the next five years,
Glenmark is committed to enhancing the availability and affordability of high-quality
medicines globally. India remains our largest market, contributing 29% to our global
revenues. Glenmark maintains formidable positions in Dermatology (2nd),
Respiratory (3rd), and Cardiac (5th) segments, supported by strong
brand equity and strategic market positioning.
*As per IQVIA MAT March 2024
Internationally, our RoW markets, which are primarily branded, recorded
a robust growth of 16.1%. We maintain a strong foothold in high-potential markets across
Latin America, Asia-Pacific, Russia, CIS and the MEA regions. Strengthening our positions
in key markets like Russia, Brazil, Mexico, Kenya, South Africa and Saudi Arabia reaffirms
our commitment to sustained global growth and expanding access to medicines, to patients
globally.
Our flagship product, RYALTRIS? has gained significant
traction worldwide, expanding into new markets and reinforcing Glenmark's reputation
as a pioneer in therapeutic innovation. Strategic alliances, including our exclusive
partnerships with BeiGene and Alphamab in Oncology and Cosmo and Pfizer in Dermatology
exemplify our dedication to broadening patient access to transformative treatments. Our
European business has achieved remarkable growth, expanding by 50% over the past two years
to become our fastest-growing region. This growth, driven by significant expansions in key
markets such as the UK, Germany, Spain, and Central and Eastern European markets such as
Poland, Czech Republic and Slovakia underscores our strategic priorities. Collaborative
efforts in France are further enhancing our market presence, while initiatives aimed at
increasing our branded business share and launching new products like Winlevi?
for Acne treatment are reinforcing our Dermatology franchise. Glenmark's presence in
over 80 countries positions us as a leading force in the global pharmaceutical landscape,
dedicated to delivering value to patients, healthcare providers, and stakeholders
worldwide. The past year also tested our resilience, particularly in the challenging U.S.
market environment. Focus on organizational quality management, operational excellence and
pipeline of complex Respiratory and injectable products will help us mitigate the
short-term challenges and bring our U.S. business back on the growth track in the medium
term.
Innovation Pipeline
Harnessing the combined expertise of Ichnos and Glenmark, Ichnos
Glenmark Innovation (IGI) stands at the forefront of driving pharmaceutical innovation.
Our successful out-licensing of ISB 830 to Astria Therapeutics in FY 2024 serves as a
testament to our global capabilities and strategic foresight in expanding market reach.
Our focused approach towards developing biologics (NBEs) and small molecules (NCEs) in the
area of
Oncology positions us at the forefront of therapeutic innovation. These
efforts place us at the cutting edge of medical breakthroughs, aimed at addressing unmet
medical needs and improving patient outcomes. Strategic milestones anticipated in FY 2025
include achieving clinical Proof of Concept for ISB 1442 and/ or ISB 2001, marking
significant advancements in patient care and therapeutic efficacy. These milestones would
not only validate our research and development efforts but also reinforce our leadership
in driving innovation within the pharmaceutical industry. IGI's strategic roadmap
outlines clear objectives for the upcoming fiscal years.
Employee Engagement and Corporate Culture
Our workforce is integral to our success. At Glenmark, we are deeply
committed to cultivating talent, promoting gender diversity, and fostering a cohesive
global workplace culture that encourages innovation and excellence at every level. We
prioritize creating an inclusive environment where every individual feels empowered to
contribute their best. This commitment is reflected in our robust talent development
programs, which aim to nurture skills and leadership qualities across all levels of the
organization.
Central to our corporate culture is a relentless pursuit of excellence.
We foster a collaborative environment that encourages employees to think creatively, take
initiative, and continuously improve. This ethos not only enhances our ability to innovate
but also strengthens our competitive edge in the dynamic pharmaceutical industry.
Responsibility Towards the Planet and Society
Glenmark is committed to sustainability, aiming to become water-neutral
by 2025, achieve zero waste to landfill by 2027, and attain carbon neutrality by 2030.
Initiatives like Project Kavach for maternal and child health, and Project Jal Kavach for
water conservation, address critical environmental and social challenges, positively
impacting the lives of the communities we serve. Through our CSR initiatives, we have
significantly impacted more than 3 Mn lives over the past decade. We are dedicated to
improving child health and reducing infant and child mortality with our vision
‘Healthier Children for a Healthier World'. We promoted child
health and nutrition awareness nationwide through the Glenmark Nutrition Awards. This year
was a proud moment for us as we wrapped up the ‘Impact@45', our longest and
biggest employee volunteering program that kicked off last year to commemorate our
forty-fifth anniversary.
Moving up the Value Chain
Glenmark is making significant strides in its branded segments -
Respiratory, Dermatology and Oncology. In the Respiratory segment, Glenmark is ranked 3rd
in India and 2nd in Russia expectorants markets respectively. Our specialty
product, RYALTRIS? is launched in 34 global markets. In Dermatology,
partnerships like JABRYUS? (Abrocitinib) with Pfizer and expansions with
WINLEVI? in Europe and South Africa illustrate our growth trajectory. Our
innovative Oncology pipeline includes Envafolimab for India and RoW markets, alongside
Tislelizumab and Zanubrutinib for the Indian market.
Our first global branded specialty product RYALTRIS? has
shown robust revenue growth and expanded market share across the markets where it has been
launched.
In the generics business, our focus remains on launching complex
products and developing a high-complexity, low-competition pipeline emphasizing on quality
and sustainable growth.
To mitigate risks in a volatile global environment, we have adopted
strategic de-risking measures. Our capital allocation strategy prioritizes maximizing
Return on Capital Employed (ROCE), while minimizing risk exposure. We have actively
reduced debt to counter escalating interest rates and to maintain financial stability.
Furthermore, significant strides have been made towards operational efficiency
enhancements, which are anticipated to improve core EBITDA margins. In conclusion, I
extend my heartfelt gratitude to our stakeholders. Together, we will continue to innovate,
excel, and make a meaningful difference in global healthcare.
Regards,
Glenn Saldanha