What is ailing Gland Pharma?

Gland Pharma was the pharma star of 2020. After listing at a premium of 21 per cent over its issue price, it delivered blockbuster returns of 137 per cent in the seven months that followed. However, the rise of this pharma star has hit a snag. In the last three months, the stock has fallen 29 per cent, and what is even more jarring is that it fell by over 50 per cent in the last one year. In this story, we investigate the blows that put the stock on life support. First blow: A broken supply chain and COVID-related products The premonition of what was to come was evident in the pharma company's financials. While the company rode high on its COVID-related products in the previous quarters, a rapid decline in their demand post COVID pushed the company's revenue down 6.4 per cent sequentially in Q2 FY22. Its revenue from the India business was hit the worst, registering a decline of 21 per cent. While the next two quarters were decent, it was evident that the supply chain headwinds and falling COVID-related revenues will be a plague to its income for a wh