Granules India To Offset Gagillapur Facility Delays With New Europe, US Launches
Approvals for four new launches from Granules's US facility have been secured and the fifth approval is awaited.
The product launches that were supposed to happen from Granules India’s Gagillapur facility in Hyderabad will be delayed by two quarters due to the closure of the plant, the company’s Executive Director Priyanka Chigurupati told NDTV Profit. However, the top executive is hopeful of compensating for the delay with new launches in Europe and US markets.
Granules India temporarily closed its Gagillapur manufacturing facility in September and October after US Food and Drug Administration (FDA) observations that required regulatory actions. Following this, the company halted production at the plant and resumed in a staggered manner in October.
“They (product launches) will be delayed. These four to five launches that are happening from the GGP facility, or were supposed to happen from the GGP (Gagillapur) facility, were for the rest of the calendar year, not necessarily the fiscal year. So they will be moved maybe two quarters. That is the estimate right now,” she said.
Four or five products from the company’s US facility will be launched in the fourth quarter, Chigurupati mentioned.
“We still have four to five launches from GPI, the US facility, that are still going to happen in Q4. The four to five launches that we have happening from GPI are the big ones. We have already received approval for about four out of the five. And the fifth one we are expecting very shortly,” the top executive said.
A few other launches are also scheduled to happen in Europe and other regions, she mentioned.
“We have a few launches that we scheduled for Europe and the rest of the regions, albeit a little bit smaller than the US,” Chigurupati said.
The product launches on schedule will help make up for the losses caused by the delay at the Gagillapur facility.
“So we do have the GPI launches and also the rest of the world launches that will make up for it (revenue loss). So the GPI products will be launched and will be scaled up as planned, but for GIL (Granules India Ltd.) products there will be a delay,” the Granules India ED said.
While the company expects to launch more products from Gagillapur, it is also moving some of them to other facilities for precautionary measures, she mentioned.
“We are still working on capacities. We are expecting a lot of these launches to happen from GGP, but we're also moving them to our GLS (Granules Life Sciences, a subsidiary of GIL) side and even some to our GPI side,” Chigurupati said.
“So, hopefully even if something happens to the facility, which we do not think would happen, we can continue to launch them from the other side as well,” she added.
Shares of Granules India Ltd. were trading 7% down at Rs 505.85 as of 10:52 a.m., compared to 0.27% rise in Nifty 50.
