Gland Pharma's Public Offer

 

Gland Pharma's public offer aiming to raise ₹ 6,479.54 crores through the public issue is the largest pharma IPO in India. The IPO constitutes an offer for sale (OFS) of more than 1.94 crore shares by promoter Fosun Pharma Industrial Pte Ltd, 1 crore shares by Gland Celsus Bio Chemicals Pvt Ltd, 35.73 lakh shares by Empower Discretionary Trust, and 18.74 lakh shares by Nilay Discretionary Trust summing the OFS to total 3.4 crore shares. The IPO also comprises the issue of fresh shares amounting up to ₹ 1,250 crores. Applicants can bid for a maximum of 13 lots with each lot comprising 10 shares. The IPO would be open from November 9 to November 11

Established in Hyderabad in 1978 as a CDMO of small volume liquid parenteral products, Gland pharma has currently established itself as an injectable focussed company. The gland is promoted by China-based Shanghai Fosun Pharma which holds a 74% stake in the company

The company is well integrated backward with its 4 finished formulation facilities (constituting 22 production lines) and 3 facilities for APIs in Hyderabad and Vizag achieving greater control over manufacturing. Gland pharma is present in sterile injectables, complex molecules, First-to-File products, and 505(b)(2) filings for NDAs with a portfolio spanning across therapeutic areas as AntiMalarials, Anti-Infectives, Anti-Neoplastics, Blood-Related, Cardiac, Gastro-Intestinal, Gynaecological, Hormones, Neuro/CNS, Ophthal / Otologicals, Pain / Analgesics, Respiratory, Vitamins / Minerals / Nutrients 

Gland Pharma has shown double-digit growth in its revenues and PAT over the last years. From 2018-2020 the revenues of the company have shown a CAGR of 27% and PAT has witnessed a CAGR of 55%. For FY 2020, Gland reported revenue of ₹ 2,633 Cr and a PAT of ₹ 773 Cr with YoY increase of 29% and 71% respectively mainly accountable to increase in export sales to US and Canada and 51 new product launches in the US, Europe, Canada, and Australia. Daptomycin, Enoxaparin, and Heparin Sodium were the key molecules contributing to the increase in export sales. Revenues from the sale of goods comprised ~88% of total revenue from operations and revenue from the sale of services constituted ~9%. Strong customer relationships are evident from the fact that the top 5 customers have consistently contributed ~48% and 49% of total revenue from operations in fiscal 2019 and 2020 respectively

Gland’s primary B2B business model contributes 96% of revenues covering IP-led technology transfer and contract manufacturing. The Indian B2C model contributes 4% to the revenues 

On a regional level, Gland operates in more than 60 countries and secures maximum revenue from the US, where it has been operational since 2007, followed by India. 

As of March 31st, 2020, along with partner companies, Gland had 265 ANDA filings in the US, of which 204 were approved and 61 pending approval. These 265 filings comprise 189 ANDA filings for sterile injectables, 50 for oncology, and 26 for ophthalmic products. Further, of the 265 ANDAs, Gland owns 100  ANDAs of which 63 ANDA filings are approved and 37 are pending approval. Along with partner firms, Gland has 1,415 product registrations, including 368 product registrations in the US, Europe, Canada, and Australia, 54 in India, and 993 in the RoW markets

#PharmaIPO #GlandPharmaIPO