Gland Pharma posts 41% jump in quarterly revenue on Cenexi acquisition

HYDERABAD (Reuters) - Indian generic injectables maker Gland Pharma Ltd reported a 41% jump in first-quarter revenue on Monday, aided by its acquisition of French pharmaceutical group Cenexi.

The Hyderabad-based company, which draws the bulk of its revenue from the United States, Europe, Canada, Australia and New Zealand, said revenue jumped to 12.09 billion Indian rupees ($146.13 million) from 8.57 billion rupees.

The company said 37% of the total revenue came from its acquisition of Cenexi in January. Revenue from Europe jumped more than five-fold to 2.22 billion rupees.

Excluding the Cenexi acquisition, Gland Pharma's revenue rose 3.5% on the back of improvement in its base business and stability in the United States.

"The efforts made for business recovery, after a challenging previous year, are yielding fruitful results," Gland Pharma Chief Executive Officer Srinivas Sadu said in a statement.

Gland Pharma, majority owned by China's Shanghai Fosun Pharmaceutical Group Co, however, reported a 15.3% fall in profit to 1.94 billion rupees for the quarter ended June 30 amid price erosions and increased competition.

Gland Pharma, founded in 1978, primarily operates on a business-to-business model and focuses on sterile and complex injectables. The company also has contract manufacturing, along with direct consumer sales.

Sales in the Indian market, which accounts for 5% of its total revenue, rose 29% to 647 million rupees.

Gland Pharma also said it launched cardioprotective agent Dexrazoxane in China during the quarter, the company's first product in the country.

Shares of the company closed marginally up at 1342.55 rupees on Monday.

($1 = 82.7340 Indian rupees) 

 

(Reporting by Rishika Sadam in Hyderabad; Editing by Maju Samuel)