The Grand Lies of Gland Pharma : The Story of Two Shortages & How company disguised investors by showcasing company's dwindling situation in another manner
โ ๏ธRedflag & Corporate Governance Issueโ ๏ธ
A thread ๐งต
#glandpharma
โ ๏ธRedflag & Corporate Governance Issueโ ๏ธ
A thread ๐งต
#glandpharma
Gland Pharma is a pharma company majnly into business of injectables. The company during IPO laid out a ambitious vision of becoming largest and fastest growing injectable-focused companies.
Cutback to Nov-21, world including India facing shortage of syringes (key raw material of Gland Pharma) mainly due to vaccination drive and some supply chain issues.
India started facing syringe shortage even before in Oct-21.
WHO also warned about global shortage in Nov-21.
India started facing syringe shortage even before in Oct-21.
WHO also warned about global shortage in Nov-21.
In Oct-21 Govt put quantitative restrictions on syringe exports from India
The problem worsened when domestic syringe factories were shut down due to pollution controls
The problem worsened when domestic syringe factories were shut down due to pollution controls
Rough Q3FY21 it seems ? But Gland pharma didn't mentioned anything about syringe shortage or supply chain issues in Q3 FY21 concall. They just mentioned about delay in certain syringe supply but have no impact on business. CONT..
Since co is celebrating another shortage (certain drugs were in shortage as US FDA & Gland had 11 such drugs). Co very smartly hide supply chain issues & celebrated drug shortage so that they can add more flying wings to its Q3 (โฌ๏ธRevenue 24%, PAT 34%)
Coming Q4 : As vaccination drive slows down Govt lifted exporrt ban on syringesby Feb-22 as demand goes down
But Gland pharma has said something diff which is not matching with what's happening in industry: Syringe shortage.
They could not export because of Syringe shortage
But Gland pharma has said something diff which is not matching with what's happening in industry: Syringe shortage.
They could not export because of Syringe shortage
In May-22, they said in current quarter (June-22), there will be shortage of 3 to 4 millions syringes but business standard report of June-22 said syringe manufacturers are sitting on inventory of 500 million syringes and Govt now cancelling orders
While India was sitting at 500Mn syringes, Gland said they are airlifting syringes to over come the problem of domestic shortage. Very unusual
Now Q1FY23 was disaster degrowth seen on QoQ & YoY basis in all parameters
Again they come with same reason supply chain disruption particularly syringe shortage which led to revenue loss of 165 crore
Again they come with same reason supply chain disruption particularly syringe shortage which led to revenue loss of 165 crore
They have just 1 supplier for syringe requirement & could have bought syringes from other supplier atleast for Indian markets but co decided not to do so due to higher cost. Doesn't makes sense that for higher cost I cannot avoid higher sales if I am doing business at 37% OPM
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