Glenmark Pharmaceuticals Faces Financial Hit Amid US Litigation Settlement

Glenmark Pharmaceuticals Ltd reported a sharp 86% decline in its consolidated profit after tax, which fell to Rs 46.97 crore for the first quarter ending June 30, 2025. This drop primarily stemmed from a financial provision made for settling a significant litigation case in the United States.

Previously, the company had made a consolidated PAT of Rs 340.24 crore in the corresponding period of the last fiscal year. The current situation arose after Glenmark set aside an estimated Rs 323.23 crore for settlement related to allegations of price-fixing and anticompetitive practices in the US.

The litigation involves various plaintiffs, including putative classes of drug purchasers. While still subject to court approval, Glenmark maintains its stance of denying all allegations against it, insisting the settlement does not imply any admission of liability. Despite this setback, the company remains optimistic about future growth in the US and European markets.

(With inputs from agencies.)