By: IPP Bureau
Last updated : January 24, 2023 10:13 am
The company is adding new capabilities of Combi-line for Microsphere, additional Bag line and lyos for the Penem block in Pashamylaram facility in Hyderabad and will be earmarking capital for further building on its Biosimilar CDMO facility
Gland Pharma Limited, a generic injectable focused pharmaceutical company, has closed the third quarter and nine months ended December 31, 2022 with revenues of Rs. 938.3 crore and a PAT of Rs. 23.19 crore.
Commenting on the results, Srinivas Sadu, MD & CEO, Gland Pharma said, “We closed this quarter Q3 FY23, with a revenue of Rs. 938.3 crore and a PAT of Rs. 23.19 crore. Challenging business environments, ongoing supply chain disruptions leading to production delays continue to impact our performance. We have received EIR from USFDA after the last audit at our Dundigal facility. Our continued focus on product quality and compliance differentiates us and provides confidence to our partners for long term association. We also completed signing the share purchase agreement for the proposed acquisition of Cenexi."
"This is our first acquisition overseas and is in line with Gland’s long-term growth objectives. It will enable Gland to increase its presence and to expand its product and service offering capability in Europe. Our new production lines in our sterile facility, in Pashamylaram, will support our product portfolio of complex and differentiated delivery formats. Amidst the tough business environment, we are taking all steps towards generating long-term stakeholder value,” added Sadu.
Revenue from operations for the nine months ended December 31, 2022, declined by 14% as compared to the corresponding period of previous year due to significant business impact in first quarter of current financial year because of non-availability and long lead times for several processing and primary materials, softer off-take of few of our key products in the US and higher base of last year due to COVID related products sale.
Revenue from operations during the quarter has declined by 12% as compared to the corresponding quarter of the previous year.
Gross margin of the company improved during the quarter as compared to the same quarter previous year and remained stable in the nine months period of the year as compared to the same period of previous financial year largely due to favourable geography mix and product mix.
Core markets of US, Europe, Canada, Australia, and New Zealand accounted for 70% of revenue during Q3 FY23, maintaining a similar level of revenue contribution as compared to Q3 FY22.
India market accounts for 9% of Q3 FY23 revenue and witnessed sequential recovery of business due to normalisation of Insulin production line.
The total R&D expense for Q3 FY23 was Rs. 51.2 crore which is 5.5% of revenue. During the nine months period of current financial year, the company has incurred Rs. 133.6 crore in R&D which is 4.7% of revenue.
Total Capex incurred during the quarter was Rs. 42.7 crore. During nine months, ended December 31, 2022, total Capex incurred was Rs. 125.3 crore.
The company is adding new capabilities of Combi-line for Microsphere, additional Bag line and lyos for the Penem block in Pashamylaram facility in Hyderabad. The company will be earmarking capital for further building on its Biosimilar CDMO facility.