GLAND PHARMA Q1FY23 Earnings Call Highlights

• Supply chain issue hit hard on quarterly dispatches, taking all measures to minimise disruptions.

• Lost nearly 70-80% of production capacity of liquid vials in Dundigal facility during the quarter due to supply chain disruption.

• Ensured new product launches were not impacted during the quarter.

• Initiated cost optimization and productivity enhancement initiatives for which 2 lines were shut at Dundigal facility to make modifications thereby improving production output. Both lines are opened from July with improved productivity

• Completed 6 ANDA filings in Q1FY23. Identified new set of products for filing in China market.

• Commercialized key products such as Bortezomib, Pemetrexed, Pantoprazole and Cyanocobalamin in the US market. Received 180 days CGT exclusivity for Zinc Sulfate injection in the USmarket.

• Witnessing increased Attrition.

• Launched 14 Product SKUs (7 molecules) in Q1FY23.

• Registered Ethacrynate Sodium, Ganciclovir, Foscarnet sodium and Labetalol Hydrochloride in new geographies during Q1FY23.

• Pricing pressure visible in US.

• Shortfall in Insulin production to be compensated by improved line productivity for the rest of the year.

• Investing in new manufacturing lines for technologies involving microspheres and combi-vials to support complex development portfolio.

• Witnessed power and fuel costs higher by >50% YoY.

• Building up inventory on anticipation of business recovery during the year.

• Most of the US launches happened in either mid or end of the quarter.

• Profit share at 10% of the revenue.

• Lost 25Cr of sales in US, 100Cr in RoW and 40Cr in India.

• Qualifying other supplies for RoW markets.

• India business revenue base around 100Cr.

• R&D expenses to remain close to 4%.

• Seen some quantities of syringes coming in at the end of the quarter.

• 6-7 molecules have grown >90% YoY in US.

• In active discussion 4 customers for biosimilar CDMO. Hope to earn revenues from last quarter of FY23.

• Signed long term contracts for 2-3 ANDAs.

• 15Cr quarterly runrate for operational expenses in biologics.

• There are few suppliers for Syringes with US approval.

• Own IP Led products have ~40-50% profit share, no profit share for Tech transfer contracts.

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