Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

Credit

We view Glenmark Pharmaceuticals as “Medium Risk” on the LARA scale. Our opinion is primarily based on the company’s sound track record of robust, organic growth and regulatory compliance. It has a diversified geographical profile and product range, albeit these are still evolving. We also note that Glenmark is a relatively small operator in the highly competitive generics market, where scale is important. This is reflected by the company’s modest revenue base and profitability. The key risk is the company’s new focus on novel drugs, which will require significant capital for R&D and testing. Moreover, the pharmaceutical industry is experiencing multiple headwinds due to: [1] price pressure from competition; [2] a rapidly consolidating group of buyers/channels, with various governments keen on capping spiralling healthcare costs; [3] increasing costs of compliance, as regulators are stepping up their scrutiny and taking tougher stands on minor deviations; [4] fewer patents expiring; and [5] macroeconomic issues in certain emerging markets (short to medium term). Our Credit Bias is “Negative” on account of the deterioration in operating performance, as well as the situation in the US (persistent price erosion) and India (sharp slowdown in the economy). We view Glenmark as “Moderate” on the LAGA scale, given the well-constructed Board and experienced senior management team. The company has a reasonable level of transparency, and is subject to relatively rigorous regulatory overview. Our assessment takes into account that: [1] Glenmark is publicly listed, with the Saldanha family controlling 45%; [2] the roles of Chairman/MD are held by Glenn Saldanha (weak); [3] the senior management team has strong market experience (effective); [4] there are six INEDs, including two former senior civil servants (moderate); and [5] related-party transactions are limited (moderate).

   We view Glenmark Pharmaceuticals as “Medium Risk” on the LARA scale. Our opinion is primarily based on the company’s sound track record of robust, organic growth and regulatory compliance. It has a diversified geographical profile and product range, albeit these are still evolving. We also note that Glenmark is a relatively small operator in the highly competitive generics market, where scale is important. This is reflected by the company’s modest revenue base and profitability. The key risk is the company’s new focus on novel drugs, which will require significant capital for R&D and testing. Moreover, the pharmaceutical industry is experiencing multiple headwinds due to: [1] price pressure from competition; [2] a rapidly consolidating group of buyers/channels, with various governments keen on capping spiralling healthcare costs; [3] increasing costs of compliance, as regulators are stepping up their scrutiny and taking tougher stands on minor deviations; [4] fewer patents expiring; and [5] macroeconomic issues in certain emerging markets (short to medium term).    Our Credit Bias is “Negative” on account of the deterioration in operating performance, as well as the situation in the US (persistent price erosion) and India (sharp slowdown in the economy).    We view Glenmark as “Moderate” on the LAGA scale, given the well-constructed Board and experienced senior management team. The company has a reasonable level of transparency, and is subject to relatively rigorous regulatory overview. Our assessment takes into account that: [1] Glenmark is publicly listed, with the Saldanha family controlling 45%; [2] the roles of Chairman/MD are held by Glenn Saldanha (weak); [3] the senior management team has strong market experience (effective); [4] there are six INEDs, including two former senior civil servants (moderate); and [5] related-party transactions are limited (moderate). 

Glenmark Pharmaceuticals

Glenmark - Tear Sheet - Lucror Analytics