Thread on Glenmark Life Science IPO 27 July 🧵:
Glenmark Life Science (GLS) is the wholly-owned subsidiary of Glenmark Pharmaceuticals Ltd;
In 2001-02, GLS launched the API manufacturing business; Currently, the company has two key business verticals: namely API and CDMO;
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GLS is a leading developer and manufacturer of select high-value, non-commoditized APIs in chronic therapeutic areas, including CVS, CNS, pain, and diabetes;
As of FY21, API and CDMO contributed ~90.6 & 8.1% to GLS revenues respectively;
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The company works with 16 of the top 20 generic pharma companies in the world and as of 31st May 2021, they have registered ~403 DMFs globally;
From the IPO proceeds, GLS will be using ~Rs 8bn as repayment of an outstanding purchase agreement to the promoter-
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-for the spin-off of the API business. The company has also envisaged using Rs 1.53bn as capital expenditure;
This includes a new multi-usage facility, which will mainly focus on the company’s CDMO business aspiration from 4QFY23.
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Key growth drivers for the Indian API industry:
👉India is on par with other countries in terms of technological capabilities and process efficiency;
👉The costs are very low in India: Domestic pharmaceutical facilities cost only 2/5th of what it costs to set up and-
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