Nicomac Machinery & RP Advisory Services were looking to sell up to 4.4% equity in Gland Pharma, according to reports. The floor price for the deal was set at Rs 1,725 per share.
Shares of the pharma company are up around 40% in the last one year but have underperformed in the calendar year 2024.
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Earlier last week, Gland had announced that it had received approval for a generic Eribulin Mesylate Injection for the US market. This is the first generic approval, and Gland Pharma expects to launch the product in near term.
Eribulin is an anti-cancer drug that is approved for treatment of metastatic breast cancer.
Nomura said it has a neutral rating on the stock with March 2025 target price of Rs 1,620, based on 18x FY26F EPS of Rs 90.
“Rolling back at 10% cost of equity, we arrive at a Nov-24F target price of INR1,570. Currently, the stock is trading at 23.8x and 19.5x FY25F/26F EPS of INR73.6/INR90, respectively. We think our financial projections adequately factor in improvement in the base business. There are potential downside risk from slower rampup at Cenexi. Further, we think the generics business is prone to competitive pressures and regulatory uncertainties, and thus a valuation multiple of more than 20x one-year forward earnings may not be sustainable,” it said.
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