Companies

Gland Pharma plans ₹800-cr capex for FY23

V Rishi Kumar Hyderabad | Updated on September 08, 2021

To invest ₹300 cr on new vaccine plant

Gland Pharma Limited has drawn up a capital expenditure plan of ₹800 crore for FY23. This includes ₹300 crore towards a new biotech vaccine facility.

The pharma company expects to supply the Russian Sputnik vaccines made in India by the year-end.

The company is expanding capacities with new lines and is setting up a new R&D centre at the Pashamylaram facility in Hyderabad. To scale up the backward integration, it is expanding its API capacity at the Vizag facility by adding a new block. “Overall, on the capex plan for FY22-23, we would be spending about ₹800 crore, and out of that about ₹300 crore would be on the new biotech vaccine facility,” said Ravi Mitra, CFO, Gland Pharma.

Sharing the company plans at the recently held AGM and investor meet, Srinivas Sadu, Managing Director, Gland Pharma, said: “We are a pure-play injectables company. Currently, injectables are the second-largest form of drug delivery systems, and account for over 41 per cent of the global market share.

“Our strategy of geographic expansion into emerging markets through our new partners has showed promising results, as we received faster approvals for our product registrations. This helps us de-risk our business in terms of geographic concentration of revenue. The growth was aided by new launches and volumes from the existing portfolio,” said Sadu.

“We have launched 28 molecules during the year. In FY21, the R&D expenditure was ₹122 crore at 3.5 per cent of our revenue from operations. We have built a pipeline of products that will drive growth in the years to come. As of March 31, 2021, we, along with our partners, have 284 ANDA filings, which include 234 ANDA approvals and 50 ANDAs filed and awaiting approval,” he said.

Sputnik V

“To foray into this contract development and manufacturing company (CDMO) space, we made the first step by entering into an agreement to manufacture Sputnik V Covid vaccine. We acquired a biological drug substance plant and started working with the Russian partner for technology transfer. It is progressing well and we look forward to initiating supply of vaccines by the year-end,” he added.

Published on September 08, 2021

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