Stride Pharma Science has reduced its net loss to Rs. 136 crore during the first quarter ended June 2022 from Rs. 209 crore in the corresponding period of last year mainly due to cost control programs and a reduction in logistics costs. Reportedly, its consolidated revenue increased sharply by 37 percent to Rs 941 crore from Rs. 688 crores. According to reports, EPS worked out to negative Rs. 15.13 as against negative Rs. 22.88.
Meanwhile, Exceptional items worked out to Rs. 122 crores during the quarter which includes loss in the joint venture and associates and exchange gain/(loss) on long-term foreign currency loans.
During the quarter ended June 30, 2022, Stelis Biopharma Ltd. has reportedly incurred a loss of Rs. 135 crores and has a net negative working capital position amounting to Rs. 415 crore, which includes the current maturities of non-current borrowings of Rs. 394 crores as at June 30, 2022.
The company claims that it’s sales in the US went up to Rs. 355 crores from Rs. 302 crores in the corresponding quarter of last year despite continuing pricing pressure in some of its key geographies consequent to the effects of COVID-19. It commercialized 55 products and it has a basket of 279 ANDAs, of which 258 have been approved. The management has projected sales of US$ 250 million in FY23 from the US business, it stated.
Moreover, the sales in other regulated markets (ORM) increased to Rs. 305 crore from Rs. 223 crore. Its order book position ORM will continue to be healthy and projected strong traction in Second half of FY23. ORM business is a significant part of its growth strategy driven by its frontend in key markets and IP-led B2B partnerships in Europe, Australia, and other parts of the world, as per reports.
“We have started the new fiscal on a healthy note. Our strategy is now gaining traction across the front-end and partner-led businesses. Our customer engagement and strong order inflows give us confidence for even a more robust near-term performance as we progress forward. The US business has maintained growth during the quarter. However, Chestnut Ridge portfolio customer transition led to a spill of $5 million in the current quarter. Adjusted for the same, the revenues in the US were at $51 million with the adjusted consolidated EBITDA at ~ 820 million. The transition was completed on 21st July and we are confident of a healthy ramp-up for the US business driven by improved performance in the base business and new launches from the combined portfolio of approved products to meet our stated growth outlook in the US,” Arun Kumar, founder, managing director, and executive chairperson said in a statement.
According to Kumar, although the other regulated markets witnessed a sequential decline due to currency headwinds, the long-term outlook for the business remains steady.
“Our Emerging markets maintained the business trend, and we remain invested in the opportunity. One of the key drivers for performance this year will be our focus on cost controls. I am pleased to share that we are tracking to the plan on our control programs, and some of the major decisions taken over the last few months have started to yield savings. We remain aggressive on cost curtailment, including a significant focus around our manufacturing network optimization. With all levers in place, we are confident to deliver a strong performance in FY23 with significantly improved profitability and a stronger balance sheet,” he said in a statement.