Glenmark Life Sciences Limited IPO Details

Glenmark Life Sciences IPO: Key Details

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Company Information

Glenmark Life Sciences Limited, incorporated in 2001, is a wholly-owned subsidiary of Glenmark Pharmaceuticals Limited (“Glenmark”). In 2019, the API manufacturing business of Glenmark was sold and spun off into a Company as part of a broader reorganization, with Glenmark Life Sciences Company focusing on the API business.

Glenmark Life Sciences is a leading developer and manufacturer of select high-value, non-commoditized active pharmaceutical ingredients (APIs) in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management, and diabetes. They also manufacture and sell APIs for gastro-intestinal disorders, anti-infectives, and other therapeutic areas.

Their API portfolio comprises specialized and profitable products, including niche and technically complex molecules. They are also increasingly providing contract development and manufacturing operations(“CDMO”) services to a range of multinational and specialty pharmaceutical companies. As of March 31, 2021, they had a portfolio of 120 molecules globally and sold APIs in India, and abroad. 16 of the 20 largest generic companies globally were its customers.

Competitive Strengths

• Leadership in Select High Value, Non-Commoditized APIs in Chronic Therapeutic Areas
• Strong Relationships with Leading Global Generic Companies
• Quality-Focused Compliant Manufacturing and R&D Infrastructure
• Strong Focus on Sustainability in Operations
• Cost Leadership across Products through Careful Monitoring and Continuous Effort
• Experienced Management Team with Proven Track Record

Company Strategy

• Expand the Geographic Focus, API Portfolio and Scope of Operations
• Grow the Contract Development and Manufacturing Operation (CDMO) Business
• Expand its Production Capacities
• Improving Financial Performance through Focus on Operational Efficiencies

Proceeds from Glenmark Life Sciences IPO will be used to:

• Payment of outstanding purchase consideration to the Promoter for the spin-off of the API business from the Promoter into the Company pursuant to the Business Purchase Agreementdated October 9, 2018
• Funding capital expenditure requirements
• General corporate purposes

Glenmark Life Sciences IPO: Financials

Comparison with listed industry peers

Glenmark Life Sciences IPO: Risks

• Any manufacturing or quality control problems may subject the company to regulatory action, and damage to reputation
• Business is dependent on the sale of its products to key customers
• A significant portion of the revenue is derived from the API business, of which a limited number of therapeutic categories and key products generate a significant portion of the total revenue
• Manufacturing and R&D facilities are located in the Indian states of Gujarat and Maharashtra. A slowdown or shutdown in manufacturing operations could have an adverse effect.
• Any delay, interruption or reduction in thesupply of raw materials to manufacture products may adversely affect the business

For complete internal and external risk factors, you can refer to the RHP of the company.

Glenmark Life Sciences IPO: Registrar and Lead Managers