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Strides Pharma - Disappointing Q2; Outlook Weakens: ICICI Securities

Strides Pharma - Disappointing Q2; Outlook Weakens: ICICI Securities

An employee uses a machine that sorts pills prior to packaging at a factory in Compiegne, France. (Photographer: Antoine Antoniol/Bloomberg)
An employee uses a machine that sorts pills prior to packaging at a factory in Compiegne, France. (Photographer: Antoine Antoniol/Bloomberg)

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ICICI Securities Report

Strides Pharma Science Ltd. reported another quarter of disappointing performance in Q2 FY22 with U.S. sales declining 17.1% QoQ (down 37.0% YoY) to $34 million.

Despite other segments reporting growth, high raw material and operational costs coupled with lower revenue have severely impacted Ebitda and margins.

The company has delayed its U.S. sales guidance of $220-230 million by several quarters highlighting weakness in the business.

Revenue declined 9.1% YoY to Rs 7.2 billion (our estimate: Rs 7.5 billion) and reported a negative Ebitda and profit after tax.

Strides Pharma has completed the acquisition of manufacturing facility of Endo Pharma New York for ~$24 million along with ~20 commercialised products across nasal sprays, controlled substances, hormones, etc.

Click on the attachment to read the full report:

ICICI Securities Strides Q2FY22 Results Update.pdf

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