Subscribe to Gland Pharma: Hem Securities

Hem Securities IPO report on Gland Pharma

Company is one of the fastest growing generic injectables-focused companies by revenue in the United States from 2014 to 2019. Company sell its products primarily under a business to business (“B2B”) model in over 60 countries as of June 30, 2020 including the United States, Europe, Canada, Australia, India and the Rest of the world. Company have a consistent compliance track record with a range of regulatory regimes across these markets. Company also have an extensive track record in complex injectables development, manufacturing and marketing and a close understanding of the related sophisticated scientific, technical and regulatory processes. Company was established in Hyderabad, India in 1978 and have expanded from liquid parenterals to cover other elements of the injectables value chain, including contract development, own development, dossier preparation and filing, technology transfer and manufacturing across a range of delivery systems. Company have a professional management team and one of its Promoters, Shanghai Fosun Pharma, is a global pharmaceutical major.

Valuation and Outlook

Company is bringing the issue at p/e multiple of approx 30x at higher end of price band of Rs 1490-1500/share on FY20 PAT basis.Company has extensive and vertically integrated injectables manufacturing capabilities with a consistent regulatory compliance track record. .Also company has track record of growth and profitability from a diversified revenue base with healthy cash flows. Hence fundamentals of company looks strong . Looking after current scenario we recommend investor with risk apetite can subscribe issue for short term while investors with long term horizon can subscribe the issue for long term purpose.

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