Gland Pharma shares erase opening losses; stock up 0.7%; check latest update on its arm's Fontenay facility

At 9:54 AM, the stock was trading 0.72% higher at ₹1,792.25 on the NSE.

The pharma company, in its filing to stock exchanges on December 25, said that the Agence nationale de sécurité du médicament et des produits de santé (ANSM), France, conducted a Good Manufacturing Practices (GMP) inspection of Cenexi’s Fontenay Manufacturing Facility (a material subsidiary of Gland Pharma Limited) between December 9 and 19, 2024.

"The said inspection was concluded, and the facility received an official notification on December 24, 2024, citing 10 (TEN) observations. Cenexi is committed to working closely with the ANSM to address the observations and will provide further updates on the exchanges as they become available," the filing added.

Gland Pharma was established in Hyderabad in 1978.

Gland Pharma Q2 FY25 Results

Gland Pharma reported a drop in second-quarter profit, hurt by lower sales in its Europe business and temporary production issues at its French unit Cenexi.

The company reported consolidated net profit of ₹164 crore ($19.5 million) for the quarter ended September 30, a 15.7% decrease from the year-ago period.

Revenue from operations climbed 2.4% to ₹1,406 crore.

Sales from Gland Pharma's Europe business fell over 1% for the quarter ended September 30 from a year ago.

Gland Pharma acquired the French pharmaceutical group Cenexi, which makes sterile and injectable pharmaceutical products, in January 2023.

The company said its overall revenue growth was hurt by temporary production issues at Cenexi. The unit has helped boost Gland's sales in Europe since its acquisition.

Excluding Cenexi, Gland Pharma's revenue grew 5% during the quarter. Sales from the US, its biggest market, increased 3%, and sales from its other markets of Canada, Australia, and New Zealand rose 45%, the company said.

Most of India's generic drugmakers derive a significant share of their revenue from the US, and the competition in the generic drugs market has been weighing on these firms' margins.