Stride Pharma Science cuts net loss to Rs. 136 crores in Q1
Stride Pharma Science reduced its net loss to Rs. 136 crore in the first quarter ended June 2022 from Rs. 209 crore in the corresponding period last year, mainly due to cost control programs and a reduction in logistics costs. According to reports, its consolidated revenue rose sharply by 37% to Rs 941 crore from Rs. 688 million rupees. According to reports, EPS operated at negative Rs. 15.13 against negative Rs. 22.88.
Meanwhile, exceptional items ran at Rs. 122 crore in the quarter, which includes loss in joint venture and associates and foreign exchange gain/(loss) on long-term foreign currency loans.
During the quarter ended June 30, 2022, Stelis Biopharma Ltd. would have incurred a loss of Rs. 135 crore and has a negative net working capital amounting to Rs. 415 crore, which includes current maturities of non-current borrowings of Rs. 394 crore as of June 30, 2022.
The company says its sales in the United States increased by Rs. 355 crore from Rs. 302 crore in the corresponding quarter last year despite continued pricing pressure in some of its key geographies due to the effects of COVID-19. It has marketed 55 products and has a basket of 279 ANDAs, of which 258 have been approved. Management forecast sales of $250 million in the US company’s fiscal year 23, she said.
Additionally, sales in other regulated markets (ORMs) increased to Rs. 305 crore from Rs. 223 crore. Its ORM backlog position will continue to be healthy and expects strong traction in the second half of FY23. The ORM business is an important part of its growth strategy, driven by its frontend in key markets and B2B partnerships led by IP in Europe, Australia and other parts of the world, according to reports.
“We started the new fiscal year on a healthy note. Our strategy is now gaining traction in front-end and partner-led activities. Our commitment to our customers and our strong order intake give us confidence for even more robust near-term performance as we move forward. US activity maintained its growth during the quarter. However, the transition of clients from Chestnut Ridge’s portfolio resulted in a $5 million spill in the current quarter. Adjusted for the same, US revenue was $51 million with adjusted consolidated EBITDA of approximately $820 million. The transition was completed on July 21 and we are confident of a healthy ramp-up of the US business driven by improved core business performance and new launches of the combined portfolio of approved products to meet our growth prospects in the United States,” Arun Kumar, Founder, Managing Director and Executive Chairman, said in a statement.
According to Kumar, although other regulated markets have seen a sequential decline due to currency headwinds, the company’s long-term outlook remains stable.
“Our emerging markets have maintained the trading trend and we remain invested in this opportunity. The focus on cost control will be a key driver of performance this year. I am pleased to report that we are following the plan for our control programs and that some of the major decisions made over the past few months have started to generate savings. We remain aggressive on cost reduction, including a focus on optimizing our manufacturing network. With all the levers in place, we are confident of delivering a strong performance in FY23 with significantly improved profitability and a stronger balance sheet,” he said in a statement.