They allow them to work like that. The premium had diminished gradually prior to Diwali. Sadu says the entry of Fosun has enabled them to access the China market in a big way. The issue, sold in the Rs 1,490-1,500 range, was subscribed 2.06 times in the three-day bidding process with HNI and retail quotas largely remaining undersubscribed. Tomorrow, I need not set up my own marketing team there,” Sadu said. Rajasthan CM Ashok Gehlot sanctions additional funds worth Rs 108 crore for MGNREGA scheme, Green buildings movement should become people's movement: M Venkaiah Naidu, India has emerged as Instagram's crucial market, says CEO Adam Mosseri. Explained | Will the COVID-19 vaccine rollout give a booster shot to the real estate sector? Sadu says this was possible as the base was laid from day one to meet USFDA standards. Gland has completed its first filing for the Chinese market in 2019. Survey No. Copyright © e-Eighteen.com Ltd All rights resderved. Shanghai Fosun Pharmaceutical (Group) Co acquired a 74 percent stake in Gland Pharma for about $1.1 billion in 2017. The existing guys are already well established, they have large portfolios and they do this as a basket approach with GPOs (group purchasing organisations). Injections, unlike oral drugs, directly go into the bloodstream, and are given in a hospitalised setting, where any failure of the drug would be catastrophic to the patient's health. "Each subsidiary of Fosun Pharma acts independently. Farmers' Protest LIVE Updates: Farmers who are surrounding Delhi have been misguided, says PM Modi, Fundamental, Stock Ideas, Multibaggers & Insights, Stock & Index F&O Trading Calls & Market Analysis, Positional and Intraday Trading Calls basis Noiseless Chart, Commodity Trading Calls & Market Analysis, Currency Derivatives Trading Calls & Insights, Options Trading Advice and Market Analysis, Model portfolios, Investment Ideas, Guru Screens and Much More, Proprietary system driven Rule Based Trading calls, Curated markets data, exclusive trading recommendations, Independent equity analysis & actionable investment ideas, Details stock report and investment recommendation. The base itself is laid for that standard, the SOPs are laid for that, the operators are trained for that,” Sadu said. A manufacturing base with installed capacity of 750 million units per annum spread over seven facilities; proven Research and Development wing; pan-India and global distribution and sales network; affiliation with national and state level healthcare institutions; compliance with all necessary regulatory boards; and a high level of approvals and pending filings in our area of operations, all contribute to our standing in the pharma domain. Gland Pharma stock gets its mojo back as grey market premium soars again 18 Nov, 2020, 11.05 AM IST Shares of Gland Pharma traded at a Rs 140-150 premium in the grey market, the unofficial market for trading in unlisted shares, on Tuesday. The price band is fixed at Rs 1,490-Rs 1,500 apiece, which Price-to-Earnings multiple between 29.87 – 30.07, a tad less than NIFTY, the index that houses the best Indian companies, suggesting a steep valuation. Gland sources much of its Heparin API need from China. Recently, when a US drug maker was looking for a manufacturing site in India to produce antiviral injection Remdesivir used in Covid-19 treatment, Gland offered its site to the drug maker. NEW DELHI: In just two sessions since its listing, shares of Gland Pharma – whose IPO was seen as expensive at its issue price and which was hurt by concerns over its China and Satyam connections – have surged handsomely. It has a natural advantage of producing Heparin. We have a wide range of injectables, including vials, ampoules, pre-filled syringes, lyophilized vials, dry powders, infusions and ophthalmic solutions. Zee Business Managing Editor Anil Singhvi gives his sharp and incisive take on it! All other factors remaining equal, backward integration and economies of scale play a significant role in providing quality medications at the right price. I don't get the contract," Sadu said in an interview to Moneycontrol. Manufacturer and distributor of injectable drugs. China's Fosun Pharma-backed Gland Pharma shares started off trade with a 14 premium compared to the issue price on November 20. Regulatory requirements are becoming stringent. “We decided to stick to B2B. About 53 percent of this constitutes injectable drugs. 'Improve CX with a Robust Business Communication Strategy' at 11:30 AM on Dec 23, 2020 - presented by Knowlarity & Freshworks. or medium without express writtern permission of moneycontrol.com is prohibited. That strategy on being B2B-focussed and quality has clearly paid off for Gland. The Rs 6,480-crore IPO of Gland Pharma has been subscribed 2.05 times so far on November 11, the final day of bidding for all kind of investors. Fosun first proposed to acquire an 86 percent stake in Gland Pharma for $1.26 billion. Plans are underway to augment the present manufacturing capacity of approximately 750 million units in the medium term to support future growth. Gland engages 30 percent of its staff on quality compliance. In what is considered to be the biggest initial public offering (IPO) by a pharmaceutical firm in India, Gland Pharma's Chinese promoters Fosun Pharma and other shareholders will be offering 43.2 million shares for sale, to raise up to Rs 6,450 crore. Gland Pharma is aimed to raise Rs 6,444.68 crore at lower price band and Rs 6,479.54 crore at higher price band. Gland was founded in 1978 by PVN Raju, a trained chemist who pioneered the development of Heparin technology in India. Shanghai Fosun Pharmaceutical (Group) Co acquired a 74 percent stake in Gland Pharma for about $1.1 billion in 2017. Completed Masters in pharmaceuticals and currently working in Gland pharma limited with overall total experience of 7 years in Quality assurance department. Every subsidiary has its own strategy. Gland has a good track record on regulatory and quality compliance. The company's name, origin and growth is intrinsically linked to this anticoagulant drug that occurs naturally in the organs of animals. Chen Qiyu is co-CEO of Fosun International and Chairman of Fosun Pharma. Gland Pharma is a business-to-business (B2B) player in the fast-growing generic injectables space, within the otherwise highly competitive … There is no change in management," Sadu said. Gland's original promoter family, led by PVN Raju and his family, is also selling 15.5 million shares through their trusts. According to an IQVIA Report, the Chinese market was estimated to be approximately $92 billion in 2019, growing 7.1 percent annually, making it the second-largest pharmaceutical market. We clearly said from the beginning no different quality systems. This is particularly difficult for injectable sites. (Bloomberg) — Gland Pharma Ltd. and its shareholders are looking to raise as much as 64.5 billion rupees ($871 million) in what would be India’s biggest initial public offering (IPO) by a pharmaceutical company. 3-Point Analysis | CPI inflation cooling off welcome, but is it enough for RBI to ease rates? 2. But Sadu says the Chinese ownership has so far been beneficial. China is the world's biggest consumer of pork. Gland Pharma: Strong D-Street debut by the company. So people who want to de-risk themselves are looking at Gland as an alternative. Gland Pharma: The company, whose IPO ran from November 9 to November 11, will make market debut today. The offer period will be November 9-11. Sadu has to field some uncomfortable questions from media and analysts on whether the business of Gland would be the same due to Chinese ownership in the backdrop of the border standoff and rising trade tensions between India and China. Even if we are willing to forgo some business, but that's fine," Sadu said. Analysts remain upbeat as they highlight the firm's capabilities in the Injectables Space Titan: Continues the upward momentum for 2nd day. The issue opened for bidding on 9 November 2020 and it closed on 11 November 2020. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol.com is prohibited. Valuation-wise, the company is again richly-valued as compared to large Indian pharma players, he added further. But the Cabinet Committee on Economic Affairs (CCEA) had raised objections to the proposal, amidst concerns of a foreign takeover of a critical Indian drug assets and the heightened tensions between India and China over the Doklam border dispute. Lonza is Switzerland-based and Catalent is US-based. The price band for … The entire revenue comes from making injectable drugs. Gland clocked revenues of Rs 2,772.4 crore in FY20, with a profit of Rs 772.8 crore. FIPB green lights Gland Pharma’s acquisition by Shanghai Fosun Gland Pharma had informed that Fosun Pharma will be purchasing all the shares of the company owned by KKR Floorline Investments Pte Ltd, which amount to around 37%, in addition to shares of other shareholders of the company. Apparently, no one has any clue why! The DRHP of Gland also points to India-China relations as one of the risks for business. Heparin still makes a signifcant contribution with revenues share of about 15-16 percent for Gland. Copyright © e-Eighteen.com Ltd. All rights reserved. The deal did come under Indian government scanner. About Gland Pharma Limited IPO. That's how he entered the contract manufacturing business,” Sadu said. Gland Pharma will launch its maiden public offer on November 9, which consists a fresh issue of Rs 1,250 crore and an offer for sale of over 3.48 crore shares by promoters and others. The launch attracted attention, and that's when KKR invested in the company," Sadu said. Vetter has invested in Gland as well. Established in Hyderabad, India in 1978, Gland Pharma has grown over the years from a contract manufacturer of small volume liquid parenteral products, to become one of the largest and fastest growing injectable-focused companies, with a global footprint across 60 countries, including the United States, Europe, Canada, Australia, India and other markets. It allows them to focus on marketing strategy and product distribution, rather than wasting time and effort on development, scale-up, manufacturing, regulatory compliance and filing dossiers for injectable products. Now their regulatory team is working with us to help in faster filing of products. We operate primarily under a business to business (B2B) model and have an excellent track record in the development, manufacturing and marketing of complex injectables. "Gland can't for the moment take off its eye on regulatory compliance standards," the analyst said. We know that not every company can make all products, they have to rely on others. The company said it is also possibly looking to acquire a large fermentation plant outside India. Sadu says the major breakout moment for the company came when it entered the prefilled syringens formulation, enoxaparin sodium - a low molecular weight Heparin under collaboration with Germany-based Vetter  Pharma. Gland Pharma General Information Description. The company had never received a USFDA warning letter. Raju was able to crack the process of making of pharmaceutical grade Heparin from the livers of slaughtered cows in the 1960s. "Unlike Lonza and Catalent, the world's leading contract manufacturers of complex formulations, including injectable drugs, Gland has a hybrid model, where it owns IP (intellectual property) that enables it to get a share of profit like a front-end company and it supplies products to multiple partners like contract manufacturers, on the other side, giving it the scale, that's reflecting in the financials," said an analyst who tracks pharma at an international brokerage. Gland Pharma IPO Subscribed 22% On Second Day Of Subscription. Mumbai: China’s Fosun Pharma is planning an initial public offering for its Indian subsidiary Gland Pharma, which could be the first Indian company with a Chinese promoter to make a debut on Dalal Street. 143-148, 150 & 151 Near Gandimaisamma 'X' Roads D.P. “To dominate injectables in the US, you need to have a large portfolio. Fosun will be reducing its stake from 74 percent to about 57 percent. As of March 31, 2020, six products in China were under approval. Visit PayScale to research Gland Pharma Limited salaries, bonuses, reviews, benefits, and more! The ability to provide therapeutic medicines on the best quality parameters and at the right price, is the overriding objective for us at Gland Pharma. "They have the best formulation and filling units in the country," said Varaprasad Reddy, the founder of vaccine maker Shantha Biotechnics, which was acquired  by French drug maker Sanofi. The IPO of Gland Pharma was subscribed 2.06 times. He started a manufacturing line, and the requirement is so low that manufacturing lines had to remain idle. NEW DELHI: Chinese drug firm Fosun Pharma has acquired approximately 74 per cent in Hyderabad-based Gland Pharma at a valuation of not more than USD 1.09 billion, the company has said. Established in Hyderabad, India in 1978, Gland Pharma has grown over the years from a contract manufacturer of small volume liquid parenteral products, to become one of the largest and fastest growing injectable-focused companies, with a global footprint across 60 countries, including the United States, Europe, Canada, Australia, India and other markets. Heparin can also be derived from other glands like lungs, spleen and intestines. Shares list at a premium to the issue price of Rs 1,500/ share. Gland Pharma is a Fresh Issue of Equity shares aggregating up to Rs 1250 Cr and Offer for sale of up to 34,863,635 Equity Shares. 3. Reproduction of news articles, photos, videos or any other content in whole or in part in any form Gland Pharma Ltd (GPL) is one of the fastest growing generic injectables-focused companies by revenue in the United States from 2014 to 2019. There is no confusion for the quality folks. "China has been completely closed for most companies. The NPM has also improved from 20% … Our 22 production lines for finished formulations across four facilities are complimented by three facilities for Active Pharmaceutical Ingredients (API). With our proven performance in complex injectables across development, manufacturing and marketing, we are sufficiently enabled to meet diverse injectable needs across a vast range of specific requirements. COMPANY NETWORK - GLAND PHARMA LTD Tofler, TWS Systems Private Limited and its officers respect the Intellectual Property Rights of all people. History. Established in Hyderabad, India in 1978, Gland Pharma has grown over the years from a contract manufacturer of small volume liquid parenteral products, to become one of the largest and fastest growing injectable-focused companies, with a global footprint across 60 countries, including the United States, Europe, Canada, Australia, India and other markets. So he started looking at doing contract manufacturing for companies. China's Fosun Pharma-owned Gland Pharma raised Rs 6,480 crore via a public issue during November 9-11. The EBITDA Margin has also improved from 33% in 2016 to 47% in FY21. The company's injectable drugs are small volume parenterals involved in contract development and manufacturing services, including evaluation of development needs, offering its customers a variety of dry powder and liquid injectables. “When we started contract manufacturing, from day one itself, we have been doing it for multinationals whose quality standards are up to the USFDA level. Since inception, Gland Pharma stands testimony to the founder’s exemplary commitment to Quality, having emerged as a global player with presence in about 90 countries in five continents. For many, Gland is known as a Heparin company. The CAGR growth is approximately 27% in revenue and 55% in PAT. Key people. This presence across the value chain has helped us witness exponential growth. Business ... Kolkata Knight Riders co-owner Shah Rukh Khan turned 55 on Monday and wishes poured in … And by doing so, we are reiterating our firm resolve to deliver value and satisfaction. It bought the stake from US private equity investor KKR. Pally, Dundigal Gandimaisamma Mandal Medchal- Malkajgiri District Hyderabad 500043, Telangana, India. Srinivas Sadu, Managing Director of Gland Pharma, said that despite the temptation of becoming a front-end player, they have chosen to be a business-to-business (B2B) company. According to reports, Australian tree farms are already shutting up shop this year, as pandemic-weary consumers eager for some festive joy seek out fresh pine trees to spruce up their homes. In 2019-20, about two-thirds of its revenue came from the world’s largest pharmaceutical market, the US. Sometimes, Gland partners with other drug makers from the stage of product development and help them in dossier filings. They have a marketing set-up. It bought the stake from US private equity investor KKR. Ola to invest Rs 2,400 crore to set up e-scooter factory in Tamil Nadu. “In 2010, we launched Heparin in the US, which is our big molecule. The OFS included the sale of up to 1.94 crore shares by Chinese owner Fosun Pharma, one crore shares by Gland Celsus Bio Chemicals, 35.73 … Should you subscribe? This comes at a time when India and China engaged in a face-off at the Line of Actual Control, following which the Central government took retaliatory economic and trade measures … Under Ravi Penemetsa, the second-generation leadership, Gland has moved from a contract manufacturer to generics injectable maker concentrating on global markets. Our family of investors and other stakeholders are the driving force that gives us a sharp focus on good governance in all our areas of operations and services. About Rs 1,250 crore would be a fresh issue, and the rest would be an offer for sale. So, Raju decided to convert the API into the finished product. But analysts warn that Gland has to be on its toes, as there is a growing competition and excess capacities being created for injectables. Anticoagulants are drugs that prevent the formation of blood clots. Since all the conditions precedent of the acquisition of the controlling interest in Gland Pharma have been satisfied boards of directors of Fosun Pharma and Fosun International are pleased to announce that … In those days, the entire requirement was 70,000 - 80,000 units per year, and there was no one who wanted to make manufacturing finished doses. In return, they will get a long-term contract to manufacture the product and certain milestone payments. In last three years, the company’s revenues grew on average, at 27.4 percent, with EBITDA margin at 36.9 percent. Gland Pharma has shown excellent growth in both topline and bottom line in the last 3 years. Global regulators, particularly USFDA, keeps a close watch on factories producing injectable drugs as these products are more prone to contamination and degradation. Gland Pharma has a high ownership (74 percent) by Fosun Pharma, which is a concern given the border tensions between India and China. Over the years, we have been able to move ahead on both those counts, to establish a presence across the entire value chain in Injectables. We make the product for 2-3 players, our volumes are more, and we give them better cost structure," Sadu explained. 172@29@17@101!~!172@29@0@53!~!|news|business|companies|how-the-chinese-owned-gland-pharma-transformed-from-a-small-time-heparin-maker-to-complex-injectable-manufacturing-6069291.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false. What this means for Gland's partners is that it shortens their time to market. Every product here is treated the same way, because all patients are the same. For us, injectables is bread and butter. Gland said it will be using Rs 1,250 crore for building a new Active Pharmaceutical Ingredient (API) factory in Visakhapatnam and expand existing facilities at Pashamylaram, near Hyderabad. Register now! Today, Heparin is mostly derived from the intestines of pigs, which are much cheaper compared to cows or buffaloes. Wu Yifang is the president and CEO of Fosun Pharma. For a lot of old products that are not generating meaningful profits, they generally look whether they are making the right investment or can make this product somewhere else and use that capacity for new more profitable products. Ideas For Profit | The maker of English Oven - Mrs Bectors IPO hits the street. Around 18 percent came from India. The average salary for Gland Pharma Limited employees in India is ₹437,617 per year. Chinese investments have come under greater scrutiny. Tofler makes no claim of ownership or affiliation with any trademark (REGISTERED OR UNREGISTERED) that forms part of any Company/LLP name listed on this page. What should investors do with this IPO – should they put money in it or skip it? Ruckus in Karnataka Assembly as Congress legislators drag deputy chairman off seat, India’s population is stabilising; fertility rate drops, contraceptive use on rise, Webinar Presented by Knowlarity & Freshworks. We are promoted by Shanghai Fosun Pharma, a global pharmaceutical major. Gland Pharma IPO: Growth good, but ownership Chinese, that is a concern, says Anil Singhvi Gland Pharma Initial Public Offering (IPO) opened today. Fosun Pharmaceutical is a listed company which started A share initial public offering in 1998 and H share in 2012. Coronavirus News highlights: Tamil Nadu reports 1,141 fresh COVID-19 cases, 14 deaths, Moderna vaccine shows 'no specific safety concerns': US regulator, Coronavirus India | Doctors on COVID-19 duty must be granted breaks: SC tells Centre, COVID-19 treatment | SC allows homeopathy, AYUSH doctors to prescribe medicine, IIT Madras turns into COVID-19 hotspot after 104 students, staffers test positive. Coronavirus Essential | Serum Institute to submit final Covishield trial data in 10 days; a new COVID-19 variant found in England. Even if I quote lower prices. In addition, the company is scouting to acquire assets that give it access to technologies such as peptides (small proteins), long-acting injectables, suspensions and hormonal products as well as new delivery systems such as pens and cartridges. "The company started as the offshoot of an API company, which was making Heparin. The public issue has received bids for … “Other companies have a site to manufacture for Indian market, they have a site for rest of the world markets, they have a site for the US market, they have different quality systems for different geographies, that's what puts them in trouble.