Glenmark Pharma in the red

Glenmark Pharma is amongst the top five losers on the BSE currently down almost 4.5% at Rs.950 levels with an intra day low of Rs.929.05. Earlier this month, it had hit a new high at Rs.1105.

Two things are presently going against the stock price today. Firstly, the downgrade by FII firm Credit Suisse from ‘Neutral’ to ‘Underperform’. The brokerage has stated in its report that the stock price has already priced in the best case scenario and that includes sustenance of profitability from Venezuela and improvement in balance sheet where cash flow generation remains weak and receivable days increased to 140 days.

Secondly, there are news reports today that its generic skin care drug that was under patent litigation, infringes patent of Bayer. The stock exchange has sought a clarification from the company on the same and reply is still awaited.

The company is to declare its Q1Fy16 performance tomorrow and hopefully, if that comes through good, maybe the price could recoup from current levels.