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Air France.pptx

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Air France.pptx

  1. 1. Strides Arcolab Limited 1992 1994 1996 1990 2005 2008 2010 2000 -02 Arun Kumar founded Strides with a focus upon exports, forging partnerships & concentrating on building scale-to-sell Capital Fund of $2 million from Arcolab. It Started exporting Pharma Products Venture Capital Fund from Schroder Capital Partners (became owner of 37% stake) Little emphasis on strategy, more on size and scale. Renamed to Strides Arcolab Limited Listed on NSE & BSE. Entered Foreign Markets aggressively acquiring both domestic and foreign companies Started investing in R&D to transform into a specialized Pharma company Kumar convinced that key to success is not achieving critical size but focusing on the value Saw on opportunity in injectable drug market due to shortage of global players due to regulatory issues
  2. 2. Agila-Mylan deal • US Patents facing expirations in 2012, large drug makers were seeking acquisitions to offset potential decline in revenues • Made cancer treatments and antibiotics • Sales jumped from $162.39 million to $183 million a year • Sold to Mylan Inc. at $1.6 billion in Feb 2013. Deal valued at 18.7 times Agila’s EBITDA for 2012 • Investors scepticism to perceive a void in the parent org. since it contributed to 60% sales & 82% EBITDA • Opinion of completing the deal in hurry given acute shortages of injectable drugs due to the regulatory hurdles faced by big names • Kumar convinced with the timing with timing of deal given his belief that scarcity asset value may not be same in 3 to 4 years
  3. 3. Future plan  Acquired Inbiopro solutions in 2013.  Biologics providing major soln. to certain life threatening conditions having global market growth at 2x than that of small molecule medicines.  Production difficult required state-of-art manufacturing techniques with high quality standards  Less competition and higher margins  Plan to develop pharma-biotech business in India and Africa fully funded by mylan cash deal  Reducing leverage using proceeds from Mylan deal to resolve its debts  Pharma business relatively low debt and no capex effectively meaning EBITDA to PAT conversion is almost 90%

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