"Glenmark's geographic diversification and a strong record of regulatory compliance help to mitigate business risks arising from its small size and support its rating relative to other larger global generic drug makers," said Fitch.
The rating also factors in Glenmark's adequate product pipeline which will support revenue and profitability despite continued pricing pressure in the US generic pharmaceutical market.
Glenmark's measured approach and derisking strategies in its novel drug development programme will help to preserve its financial flexibility from the inherent risks.
The stable outlook reflects Fitch's expectation that new product launches in the United States will support Glenmark's profitability despite sustained pricing pressure. This, coupled with continued growth in other markets, will lead to a moderate increase in EBITDA.
Improvement in leverage will, however, be limited as we expect free cash generation to be marginally negative after considering a moderate level of investments over the medium term, said Fitch.