is one of the largest and fastest-growing injectable-focused B2B companies, with a global footprint across 60 countries, including the US, Europe, Canada, Australia, India, and other markets.
It is a niche player in sterile injectables, oncology, and ophthalmic solutions with a focus on first-to-file, 505(b) (2) filings, and NCE- 1s.
Along with its partners, Gland has 267 ANDA filings (101 owned) in the US as of Q1FY21, of which 215 were approved. The company has seven manufacturing facilities in India, comprising four formulations facilities with 22 production lines and three API facilities. In 2017, Shanghai-based Fosun Pharma had acquired a 74 per cent stake in the company for US$1.09 billion.
“With benefits of being an out and out integrated injectable/ophthal manufacturer and B2B functionary combined, Gland offers a compelling proposition with its unblemished regulatory track record and customer stickiness besides long-standing manufacturing pedigree, justifying premium valuation,” ICICI Securities had said in the IPO note.
Analysts at KR Choksey believe that Gland Pharma has a unique business model of B2B nature, aided by vertical integration & R&D expertise. Moreover, the company has expansion plans in terms of geographical and capacity expansion and is open to inorganic opportunities as well. It also has a strong balance sheet with negligible debt and strong cashflows.
However, the pharma industry is heavily regulated, and the company’s business activities require various approvals, licenses, registrations, and permissions. If there is any change to such regulations or failure or delay in obtaining necessary permits or approvals, or if such permits or approvals are revoked or not renewed for any reason, the company’s business, financial condition, cash flows and results of operations may be adversely affected, the brokerage firm said.