Gland Pharma Ltd.’s three-day initial public offer opens on Nov. 9 as the China’s Sanghai Fosun-controlled injectables maker sells shares in what will be the biggest maiden offer by a pharmaceutical company in India.
Business
Established in Hyderabad in 1978, Gland Pharma is an injectable-focused drugmaker with a footprint across 60 countries, including markets such as the U.S., Europe, Canada, Australia and India. The company, which largely operates in the business-to-business segment, makes and markets complex injectables with drugmakers including Sagent Pharmaceuticals Inc and Apotex Inc.
The U.S. is Gland Pharma’s largest market contributing more than 60% to its sales.
It undertakes domestic marketing for variety of products across therapeutic segments, including anti-infectives, pain management, orthopedics, cardiology.
It’s also engaged in global out-licensing and partners with several pharma companies on expense and profit-sharing model to provide end-to-end solution—from API, method and formulation development to dossier compilation and submission
The company, with a presence in sterile injectables, oncology, and opthalmics, has seven manufacturing facilities in India. This includes four finished formulations facilities with a total of 22 production lines, and three API facilities.
Gland Pharma has 265 drug filings-- 189 filings for sterile injectables, 50 for oncology and 26 for ophthalmic-related products.
Its top five customers accounted for nearly half of its total revenue from operations in fiscals ended March 2018, 2019, 2020 and the June quarter.
Key Risks
- Failure or delay in obtaining necessary permits or approvals.
- Interruption in API production or failure to produce or procure high-quality APIs might impact sales causing delay.
- Raw material supply disruptions due to strained India-China relations.
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