Glenmark Life Sciences Ltd will be coming up with initial public offering tomorrow (July 26) to raise funds through Fresh Issue of Equity Shares aggregating up to Rs. 1060 crore and Offer for Sale up to 63,00,000 equity shares by Glenmark Pharmaceuticals Limited. The face value of equity shares is Rs. 2 each
Details about company, products and IPO
Glenmark Life Sciences Ltd is a leading developer and manufacturer of select high value, non-commoditized active pharmaceutical ingredients (APIs) in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management and diabetes.
It also manufactures and sells APIs for gastro-intestinal disorders, anti-infectives and other therapeutic areas.
It is also increasingly providing contract development and manufacturing operations services to a range of multinational pharmaceutical and specialty pharmaceutical companies.
Manufacturing facilities
It currently operate four multi-purpose manufacturing facilities which are situated on leasehold properties located at Ankleshwar and Dahej in the state of Gujarat, India, and Mohol and Kurkumbh in Maharashtra with an aggregate annual total installed capacity of 726.6 KL as of March 31, 2021.
The company plans to increase its API manufacturing capabilities by enhancing the existing production capacities at Ankleshwar facility during the financial year 2022 and Dahej facility during the financial years 2022 and 2023 by an aggregate annual total installed capacity of 200 KL.
R&D activities
For the financial years 2021, 2020 and 2019, its total expenditure for R&D activities was Rs. 40.52 crore, Rs. 40.03 crore and Rs. 37.57 crore, or 2.15 percent, 2.60 percent and 2.67 percent of its total revenue from operations respectively.
As of May 31, 2021, the company had filed 403 Drug Master Files and Certificates of suitability to the monographs of the European Pharmacopoeia across various major markets (i.e. United States, Europe, Japan, Russia, Brazil, South Korea, Taiwan, Canada, China and Australia). The company owned or co-owned 39 granted patents and had 41 pending patent applications in several countries and six pending provisional applications in India.
Revenues
It sells customer products in both regulated markets and emerging markets. For the financial years 2021, 2020 and 2019, its revenue from regulated market products was Rs. 1,237.41 crore, Rs. 1,096.62 crore and Rs. 968.51 crore, or 65.64 percent, 71.33 percent and 68.93 percent of its total revenue from operations respectively.
As on March 2021, the company has portfolio of 120 molecules globally and sells its APIs in India and exported APIs to multiple countries in Europe, North America, Latin America, Japan and the rest of the world. As of March 31, 2021, 16 of the 20 largest generic companies globally were its customers.
The total market size in terms of sales for its portfolio of 120 molecules globally was estimated to be around $142 billion in 2020 and is expected to grow by about 6.8 percent over the next five years to reach to about $211 billion by 2026. The market size in terms of volume for our 120 molecules was estimated to be at 9,959 tonnes in 2020 and is expected to grow at a rate of 6 percent over the next five years to reach to about 12,079 tonnes by 2026.
The chronic therapeutic areas covered by its portfolio of 120 molecules is expected to become 91 percent by 2026 from 84 percent currently. The future growth of its 120 molecules products is expected to remain stable driven by the increasing prevalence of non-communicable diseases (including heart disease, stroke, cancer, diabetes and chronic lung disease), growing demand from the regulated markets for drugs indicated for hypertension, diabetes and cancer, and an aging population.
IPO details
Kotak Mahindra Capital Company Limited, BofA Securities India Limited and Goldman Sachs (India) Securities Private Limited are the global co-ordinators and book running lead managers to the issue. DAM Capital Advisors Limited (Formerly known as IDFC Securities limited), BOB Capital Markets Limited and SBI Capital Markets Limited are the book running lead managers to the issue.
