Shares of Gland Pharma rose 5% on February 25, marking their best performance in 16 weeks. The surge came ahead of the company’s investor meet on February 27-28, which will be attended by analysts from Emkay and BoB Capital.
The rise in share price follows the United States Food and Drug Administration (US FDA) pre-approval inspection for Sterile APIs at Gland Pharma’s JNPC facility in Visakhapatnam, conducted between February 19 and February 25, 2025. The inspection concluded with three Form 483 observations, which are procedural and do not involve data integrity issues. The company has assured that corrective and preventive actions will be submitted to the US FDA within the required timeframe.
Potential Takeover Talks
Global private equity investors Brookfield, Blackstone, and Warburg Pincus are in discussions with the acquisition of a majority stake in the firm Gland Pharma. Most of the company at the moment is owned by the Shanghai firm Fosun Pharma. The transaction will put the company valuation at a figure of around $3 billion.
The company reported an 11% increase in net profit for the December quarter, reaching Rs 98 crore. Revenue from operations rose 38% year-on-year to Rs 1,271 crore, while total income climbed to Rs 1,343 crore. However, growth in the core business has been weaker than expected, and challenges from the recently acquired Cenexi business have impacted overall performance. The company now expects Cenexi’s breakeven to be delayed by another year but remains optimistic about a recovery in its core business in Q4FY25.
Gland Pharma has been a global source of injectables including vials, syringes, bags, and pumps with the bulk of exports going to the USA. The US demand for injectables has been estimated by the sector to grow at a 10% per annum growth rate in the next five years and this will be a boon in the long term for the firm.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com.
Source: Moneycontrol.
News Desk
