Gujarat Themis Biosyn has decided to withdraw its earlier approved merger scheme with Themis Medicare Ltd, citing a focus on its core business strengths after reviewing market developments. This decision was made on June 13, 2025, after an earlier announcement on November 18, 2024.
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Snippet of 2025 AR
Snippet of 2024 AR
Progress underway or no is bit difficult to judge, unless we check the qtr earning ppts.
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Price action says market knows something which we do not know.
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Since October 2025, numerous developments have occurred in the market, as well as at GTBL.
- API Facility is now active. Total capacity expanded from 450 KL/year to 990KL/ year. About 2.2x expansion.
- R&D spend over the past few quarters has been close to 10% of revenue, which has now moderated to about 4% of sales. This could suggest that new product development is nearing its final stages, and they may soon file the documents.
- The additional fermentation unit is also underway.
- The promoters have recently pledged shares and borrowed 10 Crs for the purpose of relieving high-interest debt to reduce interest costs.
However, according to the latest quarterly report, interest costs are negligible, and the September balance sheet shows approximately 71 crore in debt.
They pledged 920,000 shares against 10Crs. This means each share was pledged for ~11 Rs?
I don’t understand the purpose/ justification for this pledge. If anyone can throw some light on this?
Their facilities should also ramp up from here onwards, which is to be monitored in the next quarter. Hopefully, they conduct a concall to make things clear.
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GTBL acquired 13 generic branded portfolio of anti-tuberculosis (TB) and anti-infective brands from Sanofi, the French holding company of the Sanofi group, headquartered in Paris for 158 M Euros (1,740 Cr INR). The transaction is expected to be completed by Q3FY27 (Quarter Ending 31st December 2026).
The transaction does not involve the acquisition of any legal entity, manufacturing facilities or employees, making it a capital-efficient and asset-light expansion. The acquisition would include marketing authorizations, brands, regulatory dossiers, and inventory and associated commercial rights
Expectation to unlock further value from the portfolio to be acquired through expansion into under-penetrated markets, development of new formulations and indications, and optimization of existing distribution networks. Additional opportunities include reactivation of marketing authorizations in select geographies and leveraging the portfolio’s strong retail presence to drive consistent growth.
The 13 drugs sales:
FY 23: 66 m Euros
FY 24: 67 m Euros
FY 25: 62 m Euros
(Roughly ~700 Cr INR sales /year)
Now the company seems to be gaining momentum by capturing a larger pie of the value chain. From backward integration (producer of intermediates) to capacity expansion, new product development, and now also end-product marketing and sales.
Links to disclosures and ppt:
Filing - https://www.bseindia.com/xml-data/corpfiling/AttachLive/03eba62f-3628-493b-8a4f-03a46042d5c0.pdf
Press release- https://www.bseindia.com/xml-data/corpfiling/AttachLive/62b52828-5ccf-4722-a363-899a2bf9daa4.pdf
PPT - https://www.bseindia.com/xml-data/corpfiling/AttachLive/2230b114-c615-4129-b7c9-accef92a84e5.pdf
Any idea where and how they will fund such a acquisition ? How much years it will take for the debt to reduce ? And finally , what will be a good PE considering terminal value of such acquisition?
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So if the 2024-2025 is revisited.
there a 200 cr capex already going on. And current sales = 170 cr
New Estimated sale = 250 cr (Considering 1.2 asset turns for ongoing capex)
Acquisition = 600 cr (from the new drug)
Total sales ~= 1020 to 1100 cr.. (taking upside)
Valuations – (4 PS Post acquisition) vs (8 PS considering its own capex) vs (22 PS TTM)
Additional debt for acquisition cost and working capital requirements.
Difficult to get the margin of safety.. Or am I missing something ?
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