Case study

Glenmark Pharmaceuticals, based in Mumbai, India, is involved in the development, manufacturing and marketing of pharmaceuticals and healthcare products to more than 70 countries across the world. It owns subsidiaries in Switzerland, USA, UK and Brazil and has made acquisitions in Argentina and South Africa. About 50% of its revenues come from outside India largely due to increasing revenues from milestones on out-licensing of 'New Chemical Entity' (NCE), generic formulations and 'Active Pharmaceutical Ingredients' (API) and generic formulation businesses. Founded in 1977, Glenmark has traditionally been strong in dermatology products, but has expanded into the asthma, gynaecology, paediatrics, diabetology and pain management sectors, helping to push the company into the top 25 pharmaceutical companies in India. A strong emphasis on research and development of new treatments for conditions such as diabetes and obesity has also contributed to the company's growth, with R&D spend as a percentage of revenues growing from 4.42% in 2002/03 to an estimated 7.5%-9% in 2005/06. Glenmark now employs over 3,300 people across the world.

• Glenmark floated on the Indian Stock Exchange in 1999 and now has a market capitalisation of around US$800m.
• Compound annual growth rate (CAGR) between 2002/2003 and 2005/2006 of 31% in revenues, 29% in EBITDA and 40% in net profit after tax.