Glenmark Life Sciences – 6 Facts to Know Before Investing

Glenmark Life Sciences IPO opens on 27 July and will close for subscription on 29 July. Priced in the price band of Rs.695-720. Here are some interesting facts you must know about Glenmark Life Sciences.

Glenmark Life Sciences: 6 Things You Should Know

• Glenmark Life Sciences is the active pharma ingredients (API) arm of Glenmark Pharma. Today, Glenmark Life Sciences accounts for 35-40% of the total valuation of Glenmark Pharma and Glenmark Life is estimated to be valued at a market cap of Rs.8,820 crore on the day of listing.

Also Read: 5 Reasons to Invest in Glenmark Life Sciences IPO

• Glenmark has a portfolio of 120 molecules and till May-21, Glenmark Life had filed a total of 403 Drug Master Files (DMF). The DMF is unique to the API industry and India has an inordinately share of DMFs filed.

• Glenmark has an installed capacity of 727 KL of API manufacturing annually and the expansion is likely to take the total installed capacity to 930 KL by 2023. Teva, Torrent, Aurobindo and KRKA are among its key customers among generic companies.

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• In the last 3 years, Glenmark has started working with innovator pharmaceutical companies in the CDMO (contract development and manufacturing operations) space. While this is 10% of revenues, it is a high growth and high margin area.

• Glenmark Life currently has a portfolio of 120 molecules and these 120 molecules have an estimate market size of $160 billion by the year 2023. That leaves a huge scope for the growth of business for Glenmark Life.

• Between FY21 and FY23, Glenmark Life expects its sales to grow at a CAGR of 42%. During this same period, it expects its EBITDA to grow at a CAGR of 57% while the PAT is expected to grow at a CAGR of 72%. That should be able to justify current P/E ratio of 23X quite easily.