Strides Pharma Q1 Review - Weak Quarter; Operating Deleverage Hits Harder: ICICI Securities
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ICICI Securities Report
Strides Pharma Science Ltd. reported disappointing performance in Q1 FY22 with lower revenue across businesses impacting margins.
Revenue declined 12.0% YoY to Rs 6.9 billion (our estimate: Rs 9.1 billion) due to fall in U.S. and other regulated markets.
This was primarily on account of Covid-19 related disruptions affecting demand and supplies and double digit price erosion.
This also led to operating deleverage as expenses were at normal levels which along with drop in gross margin resulted in negative Ebitda.
Strides Pharma announced the acquisition of manufacturing facility of Endo Pharmaceuticals New York for $24 million along with ~20 commercialised products across nasal sprays, controlled substances, hormones, etc.
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