Thread by @BullsforBears

#glandpharma
Injectable focused B2B company
Mkt includes US,Europe,India,Australia
Niche area - sterile injectables,Oncology,Opthalmic solns
Focus -complex injectables,first to file,NCE-1, 505(b)(2) filings
Chinese promoter Shanghai Fosun Pharma is a global pharma major
#pharma

Fosun acquired controlling stake in gland 74% in 2017 for $1.09 bn
Gland has 267 ANDA filings in the US Mkt, 215 approved
267 filings - 191 sterile injectables, 50 oncology ,26 ophthalmic
Out of 267,101 ANDA are owned by Gland of which 71 approved
Good regulatory compliance

No #USFDA warning letter till date
7 mftng facilities - 4 finished Formulations, 3 API
API facilities 100% captive consumption
63% of Fy20 revenue of 2633 cr were from US mkt
Focus on injs with high entry barrier, limited competition, strict regulatory reqs

#API #cdmo

Company plans to expand - complex injectables like peptides,long acting injs, suspensions,hormones ,drug delivery systems ie.pens,cartridges
B2B focused player - long term contracts with partners,visibility of revenues, lower expenses compared to B2C

B2B model include IP led & Tech transfer models
Top 5 customers Fy20 account for 48.9% sales
Employees - 3791 Mar,20 exc contract employees
IQVIA estimates Generic mkt at ~30% overall injs mkt at $133bn in 2020 ,estimated to grow ~16% 2020-25, due to many mols going off patent

Major players B2B mkt - Gland ,Lonza,Piramal,Recipharm
33 % API requirements importd from China
Mftng capacity - Jun20 of 75 cr units for finished Formulations
Gland clients include Fresenius Kabi,LLC, Athenex
7 mftg facilities in South India - 2 sterile injs,1 penem,1 onco,3Api

Fosun pharma mkt experience in China helps Gland ,acquire raw Material at lower cost, mkt penetration of rapidly evolving Chinese mkt,logistics ,revenue from China in single digit scope for revenue expansion ,company filed 6 products in Fy20

#Glandpharma
P/E 19.5 on Eps of 76.8 in Q1fy21
Cash balance 1325 crs Jun20
ROE - 13% in fy18 to 21.2 in fy20
ROCE - 20.9 in 2018 to 27.4% in Fy20
Rev growth CAGR 28% fy18-20
High Working capital cycle 150 days is intentional to avoid product shortages penalty

Ebidta margins - 33 in fy18 to 36.3% in fy20
Strong PAT margin of 29.4% in fy20

Key risks
Border issues,sentiment in view of Chinese promoter
High regulatory scrutiny
Raw material dependence on China
Customer concentration risk
B2B primary business model ,B2C in India

Delivery system in injectables include liquid vials,lyophilized vials,prefilled syringes, ampoules
Global injs mkt grew CAGR 9.8% 2015 to 20 to $445 bn
Injs 2nd largest delivery form in global pharma after oral solids
N.America major mkt share global pharma $543 bn
#StockMarket

IQVIA report ,Indian mfts account approx 33% mkt share by vols in US generic mkt 2019
India highest #USFDA approved facilities outside US, 20% of finished dosage forms
India pharma mkt $18bn 2019
China mkt $92 bn 2019
Rising prevalence of chronic diseases, biologics drive injs

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