GLENMARK PHARMACEUTICALS Share price

The Company was incorporated on November 18 1977 under the Companies Act 1956 in the name and style of Glenmark Pharmaceuticals Private Limited. It became a deemed Public Company on July 1 1990 and then again became a Private Company on September 27 1990. Subsequently the word Private was deleted on July 1 1991 and the Company further became a Public Limited Company on January 12 1996The Company focused on establishing brands in the market as against developing a manufacturing base and has had a history of successful in-house development and launch of new products at regular interval. The Company entered the anti-fungal market where competition was less due to the relatively smaller market size by introducing Candid Cream in 1979. It has clotrimazole at its main composition which is one of the widely used and prescribed anti-fungals. Subsequently the product range was broadened by introducing Candid Lotion. After establishingCandid in the dermatological segment the Company launched Candid V-6 tablets to penetrate the Gynaeco Anti Infective segment. The product line was strengthened with the introduction of Candid V-3 Candid V-1 and Candid V-Gel. Today the Candid vaginal range is a market leader with a 31% market share. The Company launched Candid-B cream in 1981 a topical anti-fungal steroid combination to target the hitherto untapped market. The product was a success and is ranked 155th amongst the top 300 brands as per the ORG Aug ''99 MAT. Candid Mouth Paint waslaunched in 1985 for oral thrush targeted at paediatricians and has a market share of 6.4% with a growth rate of 18.6% (Market size estimated at Rs. 14.5 crores as per ORG MAT August 99). The Company launched Candiderma in 1990 and it is now the number two brand in its segment with a market share of 6.6% (Market size estimated at Rs. 114 crores as per ORG MAT August 99). The product range was further strengthened through the launch of Candid Ear Drops (1993) Candid TV Suspension andCandidtral in 1995. The Company launched Ascoril a cough expectorant in 1985 and it is one of the most successful brands of the Company and is ranked 103rd as per ORG Aug''99-MAT Recently the Company launched Altacef a second generation cephalosorin anti-biotic which has shown encouraging results. The Company has a strong sales force of around 650 medical representatives and 100 managers. The product range requires constant promotional efforts and consistent follow-up which has helped in developing the selling capabilities of the team and relationships with the doctors. Glenmark has also tried to establish a long-term relationship with the trade intermediaries like Stockists and Distributors. The Company has followed the policy of achieving breakeven sales in existing territories before entering into any new territories. This has developed into a network of around 40 Distributors 800 Stockists and 100000 Retailers across the country. The sales force and distribution network provides doctor penetration and distribution reach which is used as a base for new productlaunches and for enhancing product sales.After establishing it''s products in the market and achieving a turnover to support a manufacturing facility Glenmark started a small unit for manufacturing ointments lotions creams and powders in May 1983. The facility was located on a 5000 sq. ft. area at Satpur Nasik (Maharashtra) which was subsequently expanded to approximately 35000 sq. ft. by acquiring adjacent land and constructing additional buildings. Today Glen mark has WHO GMP certified manufacturing facilities for tablets capsules creams lotions ointments powders and liquid oral formulations at Nasik. The company has developed a separate manufacturing facility at Kundaim in Goa which would focus onthe manufacture of tablets and also avail of the backward area benefits.The Company has also targeted the overseas markets and exports branded generic formulations. It has obtained product registration in 16 countries and exports products through its subsidiary Glenmark Exports Limited. It also has a subsidiary in Portugal which has obtained registration for marketing certain products in Portugal. The Company proposes to enter the Canadian market and has obtained approval from the RBI for establishing a subsidiary in Canada. Glenmark is in the process of obtaining approval of its manufacturing facility at Nasik bythe Health Protection Board of Canada for the purpose of manufacturing products for the Canadian market. It also proposes to expand its exports by entering the US/EU markets and proposes to establish a Soft Gel Capsule manufacturing facility at Goa and seek approval for the same from the US FDA. Recognising the importance of Research and Development in the pharmaceutical industry the Company started a Research and Development Department at it''s Nasik factory in 1987. The department was granted recognition by the Department of Scientific and Industrial Research (DSIR) Government of India in 1988. The focus of the R&D efforts has been towards development of formulations marketed by the Company. The R&D team has developed various dosage forms like Candid Mouth PaintCandid TV Suspension Candid V gel etc. In order to give more thrust for the formulation development and new dosages the Company has established a full fledged R&D Center at Sinnar Nasik (Maharashtra) in May 1999. The objective of establishing the Center at Nasik is to ensure close interaction with the manufacturing facility and thereby facilitate product development. In order to prepare for the post GATT scenario the Company proposes to establish a R&D facility focusing on basic research and novel drug delivery systems at Thane Mumbai. Theproximity to Mumbai would enable it to hire skilled technical staff for the facility.Based on the success of its brands Glenmark is ranked 34th by turnover amongst 266 companies as per ORG Aug''99-MAT with over 1100 employees 8 divisional offices and a strong marketing and distribution network.