Q3 FY25 Results: Gland’s pharma Net Profit Up 7%, and Alembic’s Pharmaceuticals Declines 23%
Gland Pharma Ltd: Overview
Gland Pharma Ltd. is a leading injectable-focused pharmaceutical company based in India, known for its expertise in complex generics and sterile injectables. Established in 1978, the company has grown into a major global player with a strong presence in regulated markets such as the United States, Europe, Canada, Australia, and India. Gland Pharma specializes in contract development and manufacturing (CDMO), ready-to-use injectables, and complex formulations, including biologics, oncology drugs, peptides, and hormones. The company’s manufacturing infrastructure includes seven world-class facilities approved by stringent regulatory agencies like the USFDA, MHRA (UK), and TGA (Australia). Gland Pharma operates across various delivery formats, including vials, ampoules, pre-filled syringes, cartridges, and lyophilized injections. The company continues to expand its global footprint by entering new therapeutic segments and strengthening its supply chain network. With a robust research and development (R&D) pipeline and increasing capacity expansion, Gland Pharma remains a key player in the high-margin injectable business, focusing on innovation and efficiency in drug delivery solutions. The global injectable drugs market is experiencing steady growth due to rising chronic disease prevalence, an aging population, and increasing demand for biologics and complex generics. The injectable segment is projected to expand further, driven by advancements in drug formulations, increasing adoption of biosimilars, and the shift towards prefilled syringes and auto-injectors. The Indian pharmaceutical industry, especially the injectables sector, is benefiting from cost-effective manufacturing, a strong regulatory framework, and growing outsourcing demand from global pharmaceutical firms. However, industry challenges such as pricing pressure in regulated markets, supply chain disruptions, and stringent regulatory compliance remain key factors to monitor. With increasing investments in CDMO services and expansion into newer geographies, Gland Pharma is well-positioned to leverage the rising demand for injectable pharmaceuticals worldwide.
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During the quarter, the company introduced 13 new molecules; including chlorpromazine, dexamethasone, phenylephrine, and phytonadione, further expanding its product portfolio. In regulatory filings, the company submitted four ANDAs and received eight ANDA approvals in Q3 FY25, bringing its total ANDA filings in the U.S. to 366, of which 312 have been approved while 54 remain pending. Globally, the company now has 1,736 product registrations, reinforcing its international presence. R&D expenses for the quarter stood at ₹437 million, accounting for 4.3% of revenue, highlighting continued investment in innovation. The company incurred a total capex of ₹1,379 million during the quarter ended December 31, 2024, reflecting its commitment to infrastructure and capacity expansion. At the Fontenay site in Paris, France, production during Q3 FY25 was affected by an unannounced inspection conducted by ANSM, the French health authorities. However, a key positive development was the commencement of Cenexi’s new high-capacity ampoule line, which started production as scheduled. This new facility is expected to enhance ampoule manufacturing capacity by 40–50 million units, significantly strengthening operations. Cenexi remains on track to achieve positive EBITDA in the next fiscal year, supported by revenue growth surpassing the €200 million mark. Meanwhile, in the Indian market, the company faced a decline in revenue, primarily due to a drop in sales volume.
Q3 FY25 Earnings
- Revenue of ₹1384 crore in Q3 FY25 down by 10.3% YoY from ₹1545 crore in Q3 FY24.
- EBITDA of ₹360 crore in this quarter at a margin of 26% compared to 23% in Q3 FY24.
- Profit of ₹205 crore in this quarter compared to a ₹192 crore profit in Q3 FY24.
Alembic Pharmaceuticals Ltd: Overview
Alembic Pharmaceuticals Ltd. is a diversified pharmaceutical company with over a century of expertise in manufacturing and marketing pharmaceutical products across various therapeutic segments. Founded in 1907, the company has built a strong portfolio in formulations, active pharmaceutical ingredients (APIs), and specialty generics. Alembic Pharma operates globally, with a significant presence in India, the United States, Europe, and emerging markets. The company’s strength lies in its robust R&D capabilities, having invested heavily in developing high-value, complex generics, biosimilars, and differentiated formulations. It has a strong pipeline of USFDA-approved drugs, particularly in the oral solids, injectables, dermatology, and ophthalmology segments. The company continues to focus on expanding its specialty business, scaling up R&D investments, and diversifying into niche therapeutic areas to drive long-term growth. The Indian pharmaceutical sector remains a critical player in the global pharmaceutical supply chain, contributing significantly to generic drug exports and API manufacturing. With increasing healthcare needs, rising chronic disease burdens, and expanding regulatory approvals, the industry is poised for sustained growth. The global generics market is witnessing pricing pressures and regulatory challenges, but companies like Alembic Pharmaceuticals are countering these headwinds by focusing on complex generics, specialty drugs, and biosimilars. The rising demand for oncology, neurology, and cardiovascular drugs, along with higher adoption of biologics and specialty medications, presents significant growth opportunities. Alembic Pharmaceuticals, with its strong R&D pipeline, operational efficiencies, and strategic market expansions, is well-positioned to capitalize on emerging opportunities in both domestic and international markets while navigating industry challenges
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The India Branded Business recorded a modest growth of 3%, reaching revenue of ₹6.14 billion for Q3 FY25. In the US Generics segment, revenue grew by 10% YoY, primarily driven by the successful ramp-up of key product launches and an increase in market share for select existing products. The momentum is expected to continue, with new product introductions further fuelling growth in the upcoming quarters. The Ex-US Generics segment also reported a 10% YoY growth, reflecting strong market demand. Product registrations and dossier extensions into new markets remain on track, positioning the company for accelerated growth. However, the API segment witnessed a 10% YoY decline, primarily due to lower off-take from select customers and pricing headwinds. Despite this short-term setback, a healthy order book is expected to drive a rebound in the coming quarters. The company holds a 1.4% market share in the Indian pharmaceutical space, with four key brands generating revenues of over ₹1 billion. The Animal Health business delivered an impressive 22% growth, driven by a strong portfolio of well-established brands. In the US market, the company has built a robust front-end presence with a solid customer base, launching two new products in Q3 FY25 and a total of 159 products to date. Additionally, over five new product launches are expected in Q4 FY25, further strengthening the company’s foothold. On the sustainability front, the company remains committed to achieving its ESG goal of Net-Zero emissions by 2040.
Q3 FY25 Earnings
- Revenue of ₹1693 crore in Q3 FY25 up by 3.81% YoY from ₹1631 crore in Q3 FY24.
- EBITDA of ₹260 crore in this quarter at a margin of 15% compared to 16% in Q3 FY24.
- Profit of ₹138 crore in this quarter compared to a ₹185 crore profit in Q3 FY24.
