Pharma stock jumps 4% after $7 Million settlement with Humana, Centene, and Kaiser

The Pharma company is in focus after it jumped 4.15 percent following its multiple lawsuits settlement with three companies for 7 Million US Dollars for two drugs Zetia and Vytorin.

Share Price Movement

With a market capitalization of Rs. 37,670 Crore, the stock of Glenmark Pharma Limited opened at the same price as yesterday’s close of Rs. 1300.80. After reporting the business update stock jumped to a high of Rs. 1354.85 up 4.15 percent.

Company Update

Glenmark and its subsidiary were involved in multiple antitrust and consumer protection lawsuits, including a class action in connection with generic Zetia, a drug used for the treatment of cholesterol, and four lawsuits included claims related to the Vytorin drug.

Lawsuits alleged that in 2010, Glenmark entered an anticompetitive agreement to settle patent infringement litigation involving a patent related to ezetimibe (the active ingredient in Zetia) with Schering Corporation and

MSP Singapore Company LLC. In 2023, Glenmark settled with three plaintiff groups referred to as the Direct Purchaser Plaintiffs, the Retailer Plaintiffs, and the End-Payor Plaintiffs.

Those four lawsuits, which included claims related to both generic Zetia and Vytorin, were subsequently remanded to the jurisdictions in which they were originally filed. Glenmark decided to resolve the dispute and avoid uncertainty they agreed to a settlement with Humana, Centene, and Kaiser for a total of 7 Million US Dollars. Glenmark also states that they deny each and every one of the allegations against it.

Also read: Stock under ₹20 in focus after receiving ₹11 Cr order from Higher Education Department Delhi

Financial Highlights

The company reported a 35.13 percent YoY increase in revenue from operations to Rs. 2506.70 Crore in Q3FY24 to Rs. 3387.55 Crore in Q3FY25. On a QoQ basis, the company reported a decrease of 1.34 percent in revenue from Rs. 3433.79 Crore in the previous quarter.

Their Net profit saw a turnaround YoY from Rs. 449.58 Crore loss to Rs. 348.03 Crore profit for the same period. On a QoQ basis, the company reported a decrease of 1.81 percent in Net profit from Rs. 354.48 Crore in the previous quarter.

About the Company

Glenmark Pharmaceuticals Limited is a global pharmaceutical company headquartered in Mumbai, India, with a strong presence in several countries. Established in 1977, the company has evolved from a generic drug manufacturer to a leader in specialty and innovative medicines, focusing on therapeutic areas such as respiratory, dermatology, and oncology. 

With multiple research and development centers and manufacturing facilities across continents, Glenmark is committed to advancing healthcare through cutting-edge research and strategic collaborations. Over the years, it has introduced various novel treatments and biosimilars, reinforcing its position in the pharmaceutical industry.

Written By Abhishek Das

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