Gland Pharma Q4 Results FY2023, Profit at Rs. 787 million

On 18th May 2023, Gland Pharma announced its quarterly results for the last quarter of FY2023.

Gland Pharma Financial Highlights:

- Revenue from operations for FY2023, declined by 18% YoY at Rs. 36,246 million due to Inventory rationalization across customers in the US market, high price pressure with increased competition impacting revenue and margins, and a higher base of last year due to COVID-related products sale. 
- Revenue from operations during the quarter has declined by 28.83% YoY at Rs. 7,850 million due to a production line shutdown in Q4FY23 in the Pashamylaram Penems facility due to line upgradation and reduced business from the domestic B2C division.
- The Company reported an EBITDA of Rs. 10,248 million in FY23, a decrease of 32% YoY. For Q4FY23, EBITDA was reported at Rs. 1,684 million, down by 51.66% YoY.
- For FY2023, Net profit was reported at Rs. 7,810 million, down by 36% YoY. For Q4FY23, it was reported at Rs. 787 million, down by 72.47% YoY

Gland Pharma Business Highlights:

- Core markets of the US, Europe, Canada, Australia, and New Zealand accounted for 70% of revenue during Q4FY23. 
- Sale to the US market is comprised of products sold to both US customers and Indian customers for US markets. For Q4FY23 direct sales to US customers were Rs. 4,233 million and to Indian customers for US markets was Rs. 578 million, totaling Rs. 4,808 million. 
- Rest of the World markets, accounted for 22% of Q4FY23 revenue for the quarter. 
- India market accounts for 8% of Q4FY23 revenue.
- The total R&D expense for Q4FY23 was Rs. 678 million which is 8.6% of revenue. During the year financial year, the Company incurred Rs. 2,014 million in R&D which is 5.6% of revenue. 
- During Q4FY23, the Company filed 9 ANDAs and received 7 ANDA approvals. 
- As on March 31, 2023, with its partners Gland Pharma has 334 ANDA filings in the United States, of which 263 were approved and 71 pending approvals.
- During the quarter the Company has Launched 10 product SKUs.
- Total Capex incurred during the quarter was Rs. 977 million and was Rs. 2,230 million during the financial year. 
- The Company is adding new capabilities of Combi-line for Microsphere, additional Bag line, and lyos for the Penem block in the Pashamylaram facility in Hyderabad. 

Commenting on the results, Mr. Srinivas Sadu, MD & CEO of Gland Pharma said “We have formally closed the acquisition of Cenexi and welcome it to be a part of the Gland-Fosun family. This is our first overseas acquisition and our move into the next phase of growth and expansion. We made progress on our path to building a Bio-CDMO and signed our first contract for Plasma Protein at our Shamirpet facility. Our full-year FY23 revenue stood at Rs. 36,246 Million, and our full-year FY23 PAT stood at Rs. 7,810 Million in the midst of a challenging business environment. As an important milestone, we received our first China approval and have also initiated the launch of our first product. Our progress on the complex portfolio is in-line with the plan and this year we filed a total of 3 complex products during the year. Our priority for the next year shall be a seamless integration of Cenexi along with a focus on driving sustainable business growth”.