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Gland Pharma Ltd shares gained more than 7% in early trade on Thursday after the company reported strong performance in the June quarter.

The company's revenues grew 31% year-on-year largely driven by strong performance across geographies. The core markets of the US, Australia, Europe, Canada grew 16% year-on-year. The growth in existing products, including Micafungin, Enoxaparin, Heparin, and Dexmedetomidine, remained strong, while new product launches helped further. "It was also an important milestone to launch our first set of penem products for the US market," said the company.

India and the rest of the world markets did exceptionally well with 77% and 51% year-on-year growth. New capacities being made available for the domestic market helped ramp up volume growth in the core portfolio of products. The company also ramped up the supply of essential drugs like Remdesivir and Enoxaparin considering the requirement for Indian patients during the second wave of the pandemic.

For the rest of the world markets, the company said that “Our existing portfolio is seeing strong demand from new partnerships entered into during the year, on account of our ability to respond to the changing market demand during COVID-19."

The company also saw Ebitda growth of 12% year-on-year and 33% sequentially. Margins at 41% also remained robust.

Moving forward, the company may not see extraordinary sales of products related to Covid-19 treatment. However, a vaccine fill and finish contract from Hetero should help it more than offset the decline in its covid portfolio sales, feel analysts. Supplies to Hetero are expected to start during 2HFY22. Growth in the rest of the world markets in 1QFY22 was an outcome of accelerated approvals due to the covid situation and hence the same should sustain, said analysts at Nirmal Bang Institutional Equities.

The company may also see gains from the vaccine facility expected to come on stream by the second half. In the core markets, the company expects US sales to grow by 18-20% YoY in FY22.

Looking at the better-than-expected performance, analysts are raising their forward estimates too. Analysts at Motilal Oswal Financial Services Ltd has raised their FY22/FY23 earnings estimates by 8% each. This factors in faster growth in core markets during FY22, geographical expansion and new product launches in the rest of the world markets, and operating leverage.

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