Gland Pharma Limited has disclosed receiving a significant GST tax demand order from tax authorities for the financial year 2019-20. The pharmaceutical company made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on March 06, 2026.

GST Demand Details

The Deputy Commissioner (ST)-V, GST Department, Telangana has issued an order demanding GST tax of INR 5,03,51,468 along with applicable interest and penalty of INR 1,25,87,867 under the provisions of the CGST Act, 2017, SGST Act, 2017 and IGST Act, 2017. The order dated March 05, 2026, was received by the company through email.

Grounds for GST Demand

The GST authority has raised the demand on two primary contentions:

• Levy of Tax on Export Turnover: INR 4,57,79,447 levied by treating export turnover as local sales
• Credit Notes Issue: INR 45,72,022 levied due to non-specified reasons on issue of certain credit notes pertaining to export turnover

Company's Response and Impact Assessment

Gland Pharma has stated that upon assessment of facts and prevailing law, the company believes the tax demand and penalties levied are not justified. The pharmaceutical manufacturer plans to file the necessary appeal with the appellate authority to contest the order.

Regarding the financial impact, the company has evaluated that there will be no material impact on its financials, operations, or other activities due to the said order. This assessment suggests the company's confidence in successfully challenging the GST demand through the appellate process.

Regulatory Compliance

The disclosure was made in compliance with SEBI regulations, demonstrating the company's commitment to transparency with stakeholders regarding material developments that could potentially affect its operations or financial position.

Gland Pharma Limited has received tentative approval from the United States Food and Drug Administration (USFDA) for its Abbreviated New Drug Application for Brimonidine Tartrate Ophthalmic Solution, 0.025% (OTC). The company announced this regulatory milestone through an official press release filed under Regulation 30 with the stock exchanges.

Product Specifications and Market Position

The approved formulation is bioequivalent and therapeutically equivalent to the reference listed drug Lumify Ophthalmic Solution, 0.025%, manufactured by Bausch & Lomb Inc. The product is indicated to relieve redness of the eye and represents an important addition to Gland Pharma's ophthalmic portfolio.

Market Opportunity

According to IQVIA data, the product generated US sales of approximately $39 million for the twelve months ending September 2025. This substantial market size highlights the commercial potential for Gland Pharma's generic version once it receives final approval and launches commercially.

Regulatory Compliance

The company filed the announcement with BSE Limited and National Stock Exchange of India Limited pursuant to Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Company Secretary and Compliance Officer Sampath Kumar Pallerlamudi signed the regulatory filing.

Strategic Implications

This tentative approval strengthens Gland Pharma's position in the ophthalmic segment and demonstrates the company's continued capability in developing complex generic formulations. As a generic injectable and ophthalmic-focused pharmaceutical company with a global footprint across 60 countries, this approval aligns with the company's strategic focus on sterile injectables and specialized therapeutic areas.