Gland Pharma tanks 9% on weak June quarter show; Q1 profit drops 26%

Gland Pharma stock falls: Shares of Gland Pharma plunged as much 9.44 per cent to hit an intraday low of Rs 1910.20 per share on Monday, August 7, 2024.

However, at 9:45 AM, shares of the company were trading 4.06 per cent lower at Rs 2,023.85 per share. In comparison, BSE Sensex was trading 0.90 per cent higher at 79,301.43 levels.

The share price fell after the company reported a weak set of June quarter (Q1FY25) results.

Gland Pharma’s profit slipped 25.9 per cent year-on-year (Y-o-Y) to Rs 143.8 crore in Q1FY25, from Rs 194 crore in Q1FY24. 

The company's revenue from operations soared 16 per cent to Rs 1,401.7 crore, as opposed to Rs 1,208.7 crore in Q1FY25. 

 

At the operating level, earnings before interest, tax, depreciation, and amortisation (Ebitda) dipped 10 per cent annually to Rs 264.4 crore in Q1FY25, from Rs 293.9 crore. Consequently, Ebitda margin came in at 19 per cent, as against 24.3 per cent in Q1FY24. 

Srinivas Sadu, executive chairman and CEO of Gland Pharma, said, “We reached Rs 14,017 million in total revenue, a 16 per cent% increase from Q1FY24. The growth aligns with our projections and is primarily driven by the US market, which saw a 27 per cent revenue increase led by existing and certain new products. Our base business Ebitda margins were at 29 per cent, and consolidated Ebitda margins for the quarter were 19 per cent, mainly affected by Cenexi. We're confident in our ability to meet our fiscal year goals and are excited about the growing opportunities and even stronger results expected in the coming quarters.”

Founded in Hyderabad, India in 1978, Gland Pharma has evolved from a contract manufacturer specialising in small volume liquid parenteral products into one of the largest and fastest-growing companies in the generic injectables industry. Today, Gland Pharma has a robust global presence across 60 countries, including the United States, Europe, Canada, Australia, and India.

Operating primarily on a business-to-business (B2B) model, Gland Pharma boasts an impressive track record in pharmaceutical research and development, manufacturing, and marketing of complex injectables. 

The company's expertise spans sterile injectables, oncology, and ophthalmic segments, with a focus on complex injectables such as New Chemical Entities (NCE-1s), First-to-File products, and 505(b)(2) filings.

Gland Pharma's product range includes liquid vials, lyophilised vials, pre-filled syringes, ampoules, bags, and drops. The company is also expanding its capabilities to include complex injectables like peptides, long-acting injectables, suspensions, and hormonal products. Additionally, Gland Pharma is working to incorporate new delivery systems, such as pens and cartridges, into its diverse product portfolio.

The market capitalisation of the company is Rs 33,761.75 crore, according to Bombay Stock Exchange (BSE). The company falls under the BSE 200 category.