{"id":16574,"date":"2021-07-26T12:31:17","date_gmt":"2021-07-26T07:01:17","guid":{"rendered":"https:\/\/www.moneyworks4me.com\/investmentshastra\/?p=16574"},"modified":"2021-07-29T18:17:11","modified_gmt":"2021-07-29T12:47:11","slug":"glenmark-life-sciences-ipo-review","status":"publish","type":"post","link":"https:\/\/www.moneyworks4me.com\/investmentshastra\/glenmark-life-sciences-ipo-review\/","title":{"rendered":"Glenmark Life Sciences IPO Review: Taking advantage of API boom"},"content":{"rendered":"
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Glenmark Life Sciences Details:<\/h2>\n

IPO Date:\u00a0<\/strong>July 27th<\/sup>\u00a0to July 29th<\/sup>, 2021<\/p>\n

\u00adTotal Shares for subscription:\u00a0<\/strong>~2 Cr<\/p>\n

IPO Size:\u00a0<\/strong>~Rs. 1,500 Cr<\/p>\n

Lot Size:\u00a0<\/strong>20 shares<\/p>\n

Price Band:\u00a0<\/strong>Rs. 695-720\/ share<\/p>\n

Market Capitalization:\u00a0<\/strong>~8,800 Cr<\/p>\n

Recommendation:<\/strong>\u00a0Subscribe for risk takers<\/span><\/p>\n<\/div>\n

About Glenmark Life Sciences Limited<\/h2>\n

Glenmark Life Sciences Limited<\/strong><\/a> (\u201cGLS\u201d) is a Rs. 2,000 Cr developer and manufacturer of select active pharmaceutical ingredients (\u201cAPIs\u201d) in chronic therapeutic areas. It is a subsidiary of Glenmark Pharmaceuticals.<\/p>\n

Predominantly it manufactures cardiovascular disease (\u201cCVS\u201d), central nervous system disease (\u201cCNS\u201d), pain management, and diabetes. Almost 45% comes from the CVS segment.<\/p>\n

\"sales<\/a><\/p>\n

The API portfolio comprises specialized and profitable products, including niche and technically complex molecules, which reflects their capability to branch into other high-value products. Glenmark Life Sciences has a strong market share in select specialized APIs such as Telmisartan (anti-hypertensive), Atovaquone (anti-parasitic), Perindopril (anti-hypertensive), Teneligliptin (diabetes), Zonisamide (CNS), and Adapalene (dermatology). Almost 45% of total sales come from products with more than 20% market share. This ensures a higher margin from economies of scale and a relatively high barrier to entry from the competition.<\/p>\n

\"market<\/a><\/p>\n

They are also increasingly providing contract development and manufacturing operations (\u201cCDMO\u201d) services to a range of multinational and specialty pharmaceutical companies. Currently contributes 8% of total sales.<\/p>\n

\"sales<\/a>
\n\"live<\/a><\/p>\n

Financials of Glenmark Life Sciences Ltd:<\/h3>\n

\"Financials<\/a><\/p>\n

Glenmark Life Sciences has sales of Rs. 1,885 Cr and net profit of Rs. 354 Cr. Since it was recently demerged from the parent company into a wholly-owned subsidiary, the company did not report a long-term track record of only the API segment.<\/p>\n

\"peers<\/a><\/p>\n

If we compare with all predominantly API companies, Glenmark Life Sciences size is in the middle range with API business earning above-average operating margin. We believe the tall ask for Price\/Sales is in line with better profitability. We believe that part of the profitability is sustainable as 45% of the sales come from API with a high market share, giving it economies of scale to sustain and fight competition.<\/p>\n

Management<\/h3>\n

Yasir Rawjee:<\/strong> He leads the overall operations of Glenmark Life Sciences and is the Chief Executive Officer business strategy of the Company. He holds a bachelor\u2019s degree in science from St. Xavier\u2019s College, University of Bombay, and a bachelor\u2019s degree in science (technology) from the University Department of Chemical Technology, University of Bombay. He also holds a Ph.D. from Texas A&M University, U.S.A. Prior to joining Glenmark Life Sciences, he was the head of global API operations at Mylan Laboratories Limited. He was also the senior vice president at Matrix Laboratories Limited and has worked in GlaxoSmithKline in the USA.<\/p>\n

Glenn Saldanha:<\/strong> He holds a bachelor\u2019s degree in pharmaceutical sciences from the University of Bombay. He also holds a master\u2019s degree in business administration from the Leonard N. Stern School of Business at New York University. He is also the chairman and managing director of Promoter, Glenmark Pharmaceuticals Limited.<\/p>\n

Positives:<\/h3>\n