About Quest Laboratories Limited

Quest Laboratories Limited is engaged in the business of manufacturing of pharmaceutical formulations across a broad spectrum, including antibiotics, antimalarials, antispasmodics, anti-inflammatories, antiemetics, respiratory medications, diabetes treatments, antidepressants, and more. These formulations fall under the trademark “Quest Laboratories Limited”. The company produces a variety of products, comprising ethical drugs, generic drugs, and over[1]the-counter drugs (OTC). These products are available in various forms such as tablets, liquid orals, oral dry powders, oral powders (ORS), ointments, and external liquids. This comprehensive approach allows company to address a wide range of medical needs and preferences among patients.

Company holds WHO Schedule M GMP, and GLP certifications, adhering to the stringent guidelines set by the World Health Organization. Company also possesses Good Laboratory Practice (GLP) certificate issued by Food & Drug Administration, in-house laboratory is equipped with various equipment such as HPLC (High-Performance Liquid Chromatography), GC (Gas Chromatography), FTIR (Fourier Transform Infrared Spectroscopy), UV (Ultraviolet-Visible Spectroscopy), Dissolution apparatus, and other advanced instruments.

With manufacturing facility in Madhya Pradesh, company have been receiving sales orders from the private sector & government institutions on regular basis. This collaborative approach offers benefits to the purchasers, including cost efficiency through bulk production, capacity scaling, regulatory compliance, reduced lead times, risk mitigation, access to specialized technologies, geographical expansion, cost effective compliance, and resource optimization.

Company operates in the domestic market across twelve (12) states and two (2) union territories namely Uttar Pradesh, Madhya Pradesh, Maharashtra, Delhi, Jharkhand, Assam, Karnataka, Jammu & Kashmir, Rajasthan, West Bengal Gujarat, Telangana, Haryana and Bihar.

Market size of India pharmaceuticals industry is expected to reach US$ 65 billion by 2024, and ~US$ 130 billion by 2030. According to the government data, the Indian pharmaceutical industry is worth approximately US$ 50 billion with over US$ 25 billion of the value coming from exports. About 20% of the global exports in generic drugs are met by India.

India is among the top 12 destinations for biotechnology worldwide and 3rd largest destination for biotechnology in Asia Pacific. In 2022, India’s Biotechnology industry crossed US$ 80.12 billion, growing 14% from the previous year. During FY18 to FY23, the Indian pharmaceutical industry logged a compound annual growth rate (CAGR) of 6-8%, primarily driven by an 8% increase in exports and a 6% rise in the domestic market.

Risk associated to the issue:

• Any manufacturing or quality control problems may disrupt business operations, damage reputation for high quality production and exposes the company to potential litigation or other liabilities, which would negatively impact.
• Company is reliant on the demand from the pharmaceutical industry for a significant portion of its revenue. Any downturn in the pharmaceutical industry or an inability to increase or effectively manage their sales could have an adverse impact on Company’s business and results of operations.
• The availability of counterfeit drugs, such as drugs passed off by others as company’s products, could adversely affect their goodwill and results of operations.
• Approximately 70% of the business is from sale to government. Top 10 customers hold approximately 97% of sales.
• Company requires significant amounts of working capital for a continued growth. Inability to meet working capital requirements may have an adverse effect on results.