Key points from the AGM held today
• gVascepa – There is ongoing class action lawsuit against the innovator on API cornering which is likely to take 3-6 months to conclude and is currently sub-judice. Will contribute to sales next year.
• US manufacturing operations have become profitable and contribute positively to EBITDA. Currently running at 60-65% capacity utilization; can extend the utilization through shifts and have a long runway.
• Teriparatide – Licensed to top 3 European companies and over 20 companies worldwide (not sell in US)– Received approval in Europe and UK, EM approvals expected soon. Expect it to be $7-8m EBITDA business.
• One source has 40 logos, 19 are GLPs. Make all 3 GLPs (Lira commercialize Q4 FY 25, Sema CY 26 end, Mounjaro FY 37)
• GLP capex c. Rs 800 crs – will increase GLP capacity by 4x – expected asset turn is 1.7-2x. Expected EBITDA margins to be 40%+.
• Semaglutide (unmet un-serviced market) is expected to be a blockbuster given innovators are focussed on US market (given the pricing advantage)
• Impact of biosecurity act – Interest in Bio CDMO has dramatically increased. RFPs now are 2x of earlier. We have already announced one contract earlier with a top 3 global animal health company.
Disclosure: Invested
| Subscribe To Our Free Newsletter |
