Divi’s Laboratories Better business model in comparison to other Indian healthcare companies, Narnolia Securities Limited positive for the stock and recommend BUY with target price of Rs 1350 as well as for Godrej Consumer due to 20%+ growth in the domestic market. Also we advice our investors to book part profit at the current level of Axis bank.
StocksInsights Hidden Treasure December 2015 pick - Jagran Prakashan LtdStocksInsights
In this package, you get high potential Multibagger Stock every month with the best possible return ratio. Our intention is to help you discover the Hidden-Treasures in the market which have the potential to generate multi-fold returns in the future without taking extra risks. Our key objective is to pick stocks which can Compound Sustainably at a healthy rate for the next 3-5 years and create enormous wealth (3-4X Returns). We like to select companies with strong Competitive Advantages and moats are quoting at a discount to their intrinsic value.
Hidden Treasures Package is suitable for whom?
– Investors looking for sustainable long term returns in good stocks.
– Has a holding period of minimum 1 Year and is willing to stomach volatility.
– Investment capital of minimum INR 2 Lakh (or) if your saving is over Rs 10K/month.
– For those who do not want to gamble in short term trade and burn their fingers.
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Narnolia Securities Limited positive to buy stocks of Coal India LTD and Cipla Limited with target price of Rs 440 and Rs.307 respectively and neutral view on the stock of Canara bank.
DEEPAK NITRITE LIMITED Company Profile | Research Cosmos srisaihyp
The report DEEPAK NITRITE LIMITED Company Profile is a detailed document covered company’s Overview, History, SWOT Analysis, Products/Services, Facts, Financials, Key Executives, Competitors, Tech Intelligence, IT Outsourcing, IT Management, Recent Developments and Strategy Evaluation.
Avail Sample of the report for more information @
https://www.researchcosmos.com/request/deepak-nitrite-limited-company-profile-overview-history-swot-analysis-products-services-facts-financ/4604510
Divi’s Laboratories Better business model in comparison to other Indian healthcare companies, Narnolia Securities Limited positive for the stock and recommend BUY with target price of Rs 1350 as well as for Godrej Consumer due to 20%+ growth in the domestic market. Also we advice our investors to book part profit at the current level of Axis bank.
StocksInsights Hidden Treasure December 2015 pick - Jagran Prakashan LtdStocksInsights
In this package, you get high potential Multibagger Stock every month with the best possible return ratio. Our intention is to help you discover the Hidden-Treasures in the market which have the potential to generate multi-fold returns in the future without taking extra risks. Our key objective is to pick stocks which can Compound Sustainably at a healthy rate for the next 3-5 years and create enormous wealth (3-4X Returns). We like to select companies with strong Competitive Advantages and moats are quoting at a discount to their intrinsic value.
Hidden Treasures Package is suitable for whom?
– Investors looking for sustainable long term returns in good stocks.
– Has a holding period of minimum 1 Year and is willing to stomach volatility.
– Investment capital of minimum INR 2 Lakh (or) if your saving is over Rs 10K/month.
– For those who do not want to gamble in short term trade and burn their fingers.
Iol chemicals and pharmaceuticals multibagger 2021 & SIGN-UP new multibagger...futurecapsadvisor
Sign-up for free !! To get your first free multibagger. Wealth is the ability to fully experience life. Visit the link below !!
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Narnolia Securities Limited positive to buy stocks of Coal India LTD and Cipla Limited with target price of Rs 440 and Rs.307 respectively and neutral view on the stock of Canara bank.
DEEPAK NITRITE LIMITED Company Profile | Research Cosmos srisaihyp
The report DEEPAK NITRITE LIMITED Company Profile is a detailed document covered company’s Overview, History, SWOT Analysis, Products/Services, Facts, Financials, Key Executives, Competitors, Tech Intelligence, IT Outsourcing, IT Management, Recent Developments and Strategy Evaluation.
Avail Sample of the report for more information @
https://www.researchcosmos.com/request/deepak-nitrite-limited-company-profile-overview-history-swot-analysis-products-services-facts-financ/4604510
GMDC is a midcap mining company based out of Gujarat and is the largest seller of lignite in India.. The company has got strong presence in the state of Gujarat and will benefit from commodity price rebound that is likely in the medium term..
Core Investment Thesis :
Among all its products, lignite contributes ~80% of the total sales
value and thus is the major contributor to the bottom line of the
company. The other major contributor to the revenue has been the power division.The stock at the CMP of 74.10/- is trading at 5.22x its FY15 EPS. The stock currently offers a dividend yield of 4.01% and is trading at historic lows.
Sadhan talk about the business model of Alkyl Amine Chemical Limited (AACL) and about their valuation. AACL is one of such stocks which has given 3.5X return in past 1 year. AACL is one of the 2 market leaders in duopolistic Aliphatic Amine segment in India commanding almost 40% of the market share.
Watch this in 1 15 min video here https://youtu.be/X3V4RbIC7a4
Learn more about Investing on Youtube https://tinyurl.com/y4hwckh2
Narnolia Securities Limited positive to buy stocks of Prestige Estates, Tech Mahindra and Lupin with target price of Rs. 165, Rs 2130 and Rs. 1000 respectively. Also sell with a revised price target of Rs. 400 Cummins stock
Promoted by Mr. Venkat Jasti, Suven is one of the very few companies in India focused on new drug discovery on its own and in partnership with several innovator companies.
The Hyderabad based company basically focuses on CRAMS (contract research and manufacturing services) and assists global innovators in drug development by supplying intermediates for relevant new chemical entities (NCEs) during the clinical phase of drug development. The projects undertaken by the Company include process research, custom synthesis and intermediate manufacturing.
We are looking at Suven from long term investment perspective as drug discovery in itself is a very long cycle. As explained in the business section below, we believe movement of only few projects of the company to higher phases or to commercialization phase can result in substantial increase in sales of the company. Also, while new drug discovery has very low probability of success, more so in the case of CNS, we believe there can be good upside if the company’s SUVN-502 is able to successfully move to Phase III of clinical trials
Aarti Drugs (ADL) is a part of well known Aarti group of industries. The Company is engaged in the manufacturing of Active Pharmaceutical Ingredients (APIs), Pharma Intermediates, Specialty Chemicals and also manufactures formulations through its wholly-owned subsidiary- Pinnacle Life Science Private Limited.
The company has a long standing track record in the bulk drugs industry and has been supplying products to demanding domestic and international customers.
Pharmaceutical is a booming sector in the country today. Foreign investments have flowed into the country over the past few years in huge amounts. Bangladesh, with a population base of 160m provides a very prospective environment for foreign Pharmaceutical to invest. Who are increasingly becoming more capable of purchasing consumer goods, and this class is growing says a study by World Bank.
The Company started its operations as Pfizer (Bangladesh) Limited in 1972. For the next two decades it continued as a highly successful subsidiary of Pfizer Corporation. However, by the late 1990s the focus of Pfizer had shifted from formulations to research. In accordance with this transformation, Pfizer divested its interests in many countries, including Bangladesh. Specifically, in 1993 Pfizer transferred the ownership of its Bangladesh operations to local shareholders, and the name of the company was changed to Renata Limited.
In this report, we have tried to find out how Renata Limited maintains its Financial Accounting policies and develops its businesses in this one of the most competitive Pharmaceutical markets in the world. ACI Ltd, Beximco Pharmaceuticals Ltd, Essential Drugs Company Ltd, Square Pharmaceuticals Ltd etc are competitors of Pharmaceutical markets. The objective of this assignment is to begin to integrate the many concepts we have studied and to give an opportunity to apply our financial accounting in a real-world setting. Renata Limited performs this hard job through applying our studied strategies. Renata Limited is earning Goodwill and Customer Satisfaction through providing quality services and maintaining up-to-date business strategies. And after analyzing the reports and studying the market it is quite clear that they are fairing quite well according to their company objectives.
Narnolia Securities Limited positive to buy stocks of Stock SWARAJ ENGINES, Kolte-Patil Developers, Kalpatru Power Transmission and Godrej Consumer Product with target price of Rs Rs 648 ,Rs 120, Rs.95 and Rs 960 respectively
GIC Housing Finance Ltd (GICHF) was incorporated as ‘GIC Grih Vitta Limited’ on 12th December 1989. The name was changed to GICHF on 16th November 1993. It’s promoted by well known domestic re-insurer General Insurance Corporation (GIC) and is a well-known company in India’s Housing Finance market.
The Company was formed with the objective of entering into the field of direct lending to individuals and other corporate to accelerate the housing activities in India. The primary business of GICHF is granting housing loans to individuals and to persons/entities engaged in construction of houses/flats for residential purposes.
We like the company on account of its steady well managed growth in a growing market. The company has become slightly aggressive in terms of expansion into states other than Maharashtra and has been consistently adding new branches outside Maharashtra. The company also seems to have managed its loan book well and has made adequate provisions. GICHF is trying to reduce the share of bank borrowings and the same will help in reducing cost of funds with consequent improvement in net interest margins (NIM).
Dynemic Products is India’s leading manufacturer and exporter of complete range of Food colours, Lake colours, Blended colours, & US-FDA certified FD&C colours & Dye Intermediates.
Britannia Industries volume growth will recover gradually over the next few quarters, driven by higher brand spends and portfolio expansion. Narnolia Securities Limited have "BUY" view on the stock with a target price of Rs 1065
GMDC is a midcap mining company based out of Gujarat and is the largest seller of lignite in India.. The company has got strong presence in the state of Gujarat and will benefit from commodity price rebound that is likely in the medium term..
Core Investment Thesis :
Among all its products, lignite contributes ~80% of the total sales
value and thus is the major contributor to the bottom line of the
company. The other major contributor to the revenue has been the power division.The stock at the CMP of 74.10/- is trading at 5.22x its FY15 EPS. The stock currently offers a dividend yield of 4.01% and is trading at historic lows.
Sadhan talk about the business model of Alkyl Amine Chemical Limited (AACL) and about their valuation. AACL is one of such stocks which has given 3.5X return in past 1 year. AACL is one of the 2 market leaders in duopolistic Aliphatic Amine segment in India commanding almost 40% of the market share.
Watch this in 1 15 min video here https://youtu.be/X3V4RbIC7a4
Learn more about Investing on Youtube https://tinyurl.com/y4hwckh2
Narnolia Securities Limited positive to buy stocks of Prestige Estates, Tech Mahindra and Lupin with target price of Rs. 165, Rs 2130 and Rs. 1000 respectively. Also sell with a revised price target of Rs. 400 Cummins stock
Promoted by Mr. Venkat Jasti, Suven is one of the very few companies in India focused on new drug discovery on its own and in partnership with several innovator companies.
The Hyderabad based company basically focuses on CRAMS (contract research and manufacturing services) and assists global innovators in drug development by supplying intermediates for relevant new chemical entities (NCEs) during the clinical phase of drug development. The projects undertaken by the Company include process research, custom synthesis and intermediate manufacturing.
We are looking at Suven from long term investment perspective as drug discovery in itself is a very long cycle. As explained in the business section below, we believe movement of only few projects of the company to higher phases or to commercialization phase can result in substantial increase in sales of the company. Also, while new drug discovery has very low probability of success, more so in the case of CNS, we believe there can be good upside if the company’s SUVN-502 is able to successfully move to Phase III of clinical trials
Aarti Drugs (ADL) is a part of well known Aarti group of industries. The Company is engaged in the manufacturing of Active Pharmaceutical Ingredients (APIs), Pharma Intermediates, Specialty Chemicals and also manufactures formulations through its wholly-owned subsidiary- Pinnacle Life Science Private Limited.
The company has a long standing track record in the bulk drugs industry and has been supplying products to demanding domestic and international customers.
Pharmaceutical is a booming sector in the country today. Foreign investments have flowed into the country over the past few years in huge amounts. Bangladesh, with a population base of 160m provides a very prospective environment for foreign Pharmaceutical to invest. Who are increasingly becoming more capable of purchasing consumer goods, and this class is growing says a study by World Bank.
The Company started its operations as Pfizer (Bangladesh) Limited in 1972. For the next two decades it continued as a highly successful subsidiary of Pfizer Corporation. However, by the late 1990s the focus of Pfizer had shifted from formulations to research. In accordance with this transformation, Pfizer divested its interests in many countries, including Bangladesh. Specifically, in 1993 Pfizer transferred the ownership of its Bangladesh operations to local shareholders, and the name of the company was changed to Renata Limited.
In this report, we have tried to find out how Renata Limited maintains its Financial Accounting policies and develops its businesses in this one of the most competitive Pharmaceutical markets in the world. ACI Ltd, Beximco Pharmaceuticals Ltd, Essential Drugs Company Ltd, Square Pharmaceuticals Ltd etc are competitors of Pharmaceutical markets. The objective of this assignment is to begin to integrate the many concepts we have studied and to give an opportunity to apply our financial accounting in a real-world setting. Renata Limited performs this hard job through applying our studied strategies. Renata Limited is earning Goodwill and Customer Satisfaction through providing quality services and maintaining up-to-date business strategies. And after analyzing the reports and studying the market it is quite clear that they are fairing quite well according to their company objectives.
Narnolia Securities Limited positive to buy stocks of Stock SWARAJ ENGINES, Kolte-Patil Developers, Kalpatru Power Transmission and Godrej Consumer Product with target price of Rs Rs 648 ,Rs 120, Rs.95 and Rs 960 respectively
GIC Housing Finance Ltd (GICHF) was incorporated as ‘GIC Grih Vitta Limited’ on 12th December 1989. The name was changed to GICHF on 16th November 1993. It’s promoted by well known domestic re-insurer General Insurance Corporation (GIC) and is a well-known company in India’s Housing Finance market.
The Company was formed with the objective of entering into the field of direct lending to individuals and other corporate to accelerate the housing activities in India. The primary business of GICHF is granting housing loans to individuals and to persons/entities engaged in construction of houses/flats for residential purposes.
We like the company on account of its steady well managed growth in a growing market. The company has become slightly aggressive in terms of expansion into states other than Maharashtra and has been consistently adding new branches outside Maharashtra. The company also seems to have managed its loan book well and has made adequate provisions. GICHF is trying to reduce the share of bank borrowings and the same will help in reducing cost of funds with consequent improvement in net interest margins (NIM).
Dynemic Products is India’s leading manufacturer and exporter of complete range of Food colours, Lake colours, Blended colours, & US-FDA certified FD&C colours & Dye Intermediates.
Britannia Industries volume growth will recover gradually over the next few quarters, driven by higher brand spends and portfolio expansion. Narnolia Securities Limited have "BUY" view on the stock with a target price of Rs 1065
India's first Int'l Conference on Best Practices in Pharma Microbiology Biocon
This is the first time that Pharmig, an international Pharmaceutical Microbiology think tank based out of the UK is organizing a conference on the "Best Practices in Pharma Microbiology" for the first time in India. You can register
by sending an email to maxine@pharmig.org.uk. For booking a seat for the conference, please visit: http://bit.ly/1J4gtLh
This document brings together a set of latest data points and publicly available information relevant for IOT & AR. We are very excited to share this content and believe that readers will benefit immensely from this periodic publication immensely.
We expect the Palm Oil prices to trade at around current levels and stabilize towards the end of the year, in line with forecasts made by industry analysts. We have also been able to manage the cost of production through stringent cost management initiatives and through focus on improving the field management practices.
This document brings together a set of latest data points and publicly available information relevant for Healthcare Industry. We are very excited to share this content and believe that readers will benefit from this periodic publication immensely.
Amira consistent top line growth underscores our success in continually adding new customers and expanding our business as the growing global demand for our premium products and offerings including our core basmati rice
Text Summarizer AI for Documents like Annual ReportsChristopher Helm
Text Summarization in annual report via AI Transformers
Today, rising amounts of documents and the contained information have to be processed by enterprises to be able to use the hidden content. This is either done by time-expensive manual text summarization or by using an automatization solution. Automatic text summarization helps humans to efficiently process the growing volume of information.
You can find more information about the technical background on our blog: https://konfuzio.com/de/automatic-text-summarization-in-pdf-files/
Interview with the President | Annual Rapport 2014 YokogawaYokogawa
Orders, net sales, and operating income were all up compared with the previous year due mainly to efforts aimed at expanding the industrial automation and control business, which remains strong outside Japan thanks to energy-related investments growth and continued weakness in the value of the yen.
This document brings together a set of latest data points and publicly available information relevant for Retail & Consumer Goods Industry. We are very excited to share this content and believe that readers will benefit from this periodic publication immensely.
Walk-in Drive at Aurangabad, Maharashtra on Oct 23, 2016Biocon
Walk-in drive at Aurangabad for positions in Fill finish Production, Fill finish Packing, Engineering & Maintenance, Instrumentation, Insulin Production and Packing inspection.
Date: Oct 23, Sunday (9AM-2PM)
Venue: The Salt, MGM-Sports Club & Stadium, Behind MGM Hospital, N-6 CIDCO, MGM Campus, Aurangabad, 431003
#Job #Recruitment #Biotechnology #Hiring
Biocon organizing walk-in interviews at VishakhapatnamBiocon
Biocon Walk In at Vishakhapatnam
Venue: -
Integral Institute of Advanced Management (IIAM)
Plot Not 10, Sector 7, MVP Colony, Visakhapatnam - 530 017.
Landmark: Near to CBI Office
Date: Sunday, 22nd May 2016. Time: 9:00AM- 02:00PM
Biocon Walkin Interviews Hyderabad 29th November 2015Biocon
All available positions are Bangalore based. This document contains details of the Walkin Interviews scheduled to be held in Hyderabad on the 29th of November, Sunday.Refer this document for available positions and mandatory documents including venue details. Interested candidates can register themselves by clicking here: http://bit.ly/1lNUQGG
New Candidate Registration & Application Process: Navigation from Biocon.comBiocon
This document illustrates the process of registration for a new candidate and the subsequent application process, after clicking the Careers tab on the Biocon.com homepage.
Biocon Bio Waste Disposal Company Statement Biocon
This is the official company statement regarding the trucks carrying waste from Biocon to Terra Firma for disposal as per Pollution Control Board Norms
This document provides details about the available positions for the Biocon Walk In Interviews scheduled to be held on the 28th of June, 2015. Candidates who are unable to attend the Walk In Interviews, are required to register
themselves on the careers page: http://bit.ly/1TRkJ53
Indeed, we have changed the paradigm. Take a look at how we performed in the past year and what were the major developments of the past year. Also, gain an understanding of how we intend to take Biocon to the next level.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
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A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
3.0 Project 2_ Developing My Brand Identity Kit.pptx
Q4 & FY13 Post Earnings Conference Call April 26, 2013
1. Transcript of Biocon’s Q4 & FY13 Earnings Conference Call Page 1
Q4 & FY13 Post Earnings Conference Call
April 26, 2013
Participants from Biocon Group’s Senior Management Team
Kiran Mazumdar Shaw: Chairman and Managing Director
John Shaw: Vice Chairman
Arun Chandavarkar: Chief Operating Officer
Murali Krishnan: President, Finance
Abhijit Barve: President, R&D
Rakesh Bamzai: President, Marketing
Satish Arunachalam: General Manager, Finance
Kiran Kumar: Deputy General Manager, Finance
Peter Bains: Director, Syngene International
M.B. Chinappa: President, Finance, Syngene International
Manoj Nerurkar: Chief Operating Officer, Syngene International
Presentation Session
Moderator: Ladies and gentlemen, good day and welcome to the Biocon Limited Q4 FY13
Earnings Conference Call. As a reminder, for the duration of this conference, all participants’ lines
will be in the listen-only mode. There will be an opportunity to ask questions at the end of today’s
presentation. Should you need assistance during this conference, please signal the operator by
pressing ‘*’ and then ‘0’ on your touchtone phone. Please note that this conference is being
recorded. I would now like to hand the conference over to Ms. Urvashi Butani of CDR India.
Thank you.
Urvashi Butani: Good afternoon everybody, and thank you for joining us in Biocon Limited’s Q4
FY13 conference call. We have with us on the call today Ms. Kiran Mazumdar-Shaw, Biocon’s
Chairman and Managing Director and her colleagues from the senior management team. We will
begin this call with the opening remarks from Biocon’s management followed by an interactive
Q&A session. I would like to add that some of the statements made in this call may be forward-
looking in nature and a note to that effect is stated in the release sent out to you earlier. Now, I
would like to invite Ms. Kiran Mazumdar Shaw to briefly discuss the company’s performance for
the period ended 31st March 2013.
Kiran M Shaw: Thank you Urvashi. Good afternoon and welcome to Biocon’s investor conference
call for the fiscal year ended 31st
March 2013. I will cover the performance for the year and for the
quarter separately to better explain the business growth. Let me begin with our performance for
the year.
Group sales have risen by 18% to Rs. 2,428 Crores. We have had particularly strong
performances from our Research Services business and our Healthcare division.
Research Services have grown a robust 36% to Rs. 557 Crores, and I would
particularly like to highlight this performance as having crossed the Rs. 500 Crores
turnover mark.
Healthcare has grown by 34% to Rs. 348 Crores from the previous year’s Rs.259
Crores. Biologics contributes over 50% to our Healthcare division revenues and I
2. Transcript of Biocon’s Q4 & FY13 Earnings Conference Call Page 2
think this is particularly relevant in positioning us as a differentiated branded
formulation company in the country.
Group net profit for the FY13 has grown by over 50% to a record Rs.509 Crores. This is on
the back of an exceptional income that we have recognized this year, pertaining to the re-
licensing of our generic insulin analogs portfolio to Mylan.
Excluding all exceptional items, group net profit for the full year stands at Rs.343 Crores.
Performance at the PAT level has been impacted by increased tax outflow due to the
partial loss of SEZ and EOU benefits to our facilities. In fact, tax has grown from Rs.54
Crores last fiscal to Rs.98 Crores this fiscal.
A significant milestone this quarter was the extension of our partnership with Mylan in February
2013 for generic insulin analogs. This deal is very significant for us as not only do we get a very
strong co-development and commercialization partner in Mylan, but it also endorse the
tremendous value of this asset. I would like to highlight here some key differences between the 2
deals which we executed for these assets. Unlike the Pfizer deal which put the complete onus of
development on Biocon, the Mylan deal is a co-development arrangement wherein Mylan will bear
a significant part of the development cost for generic insulin analogs in both US and EU. This deal
therefore significantly reduces our development spend in meeting the regulatory requirements for
taking our generic insulin analogs portfolio to US, Europe and other regulated markets. While the
erstwhile Pfizer deal was based on milestone payments and royalties, the Mylan deal involves
profit sharing upon commercialization. This alliance validates our business model of generating
revenues both from product sales as well as licensing.
As you are aware, we have always taken a prudent approach towards accounting for licensing
income whereby we recognize income commensurate with clinical and regulatory development.
This is what we did when we signed the agreement with Pfizer, and this is what we will do in our
current partnership arrangement with Mylan. Consequently our development obligations continue
for rh-insulin which we have not partnered as yet, but greatly reduce for our generic insulin
analogs. We have therefore re-assessed the earlier deferred amounts for our insulin portfolio
earmarked towards clinical and other obligated development cost, and have accordingly booked
Rs.215 Crores as exceptional income this quarter.
The reading of Q4 numbers has been impacted by several exceptional items. The exceptional
income and certain exceptional provisions made this quarter should be factored in when analyzing
the same. As a matter of abundant caution, we have made a provision of 13 Crores towards
perceived erosion in the value of our equity investment in IATRICa, a small US startup company.
We have also provided Rs.10 Crores for certain management bonuses, which will be paid out to
various executives in our company who have put in exceptional efforts over the past 2 years in
licensing various assets including generic insulin analogs to Mylan.
There has been a decline in sequential quarterly revenue in our Biopharma business from Rs.409
Crores to Rs.380 Crores. This is largely due to a phasing issue in insulins where we have
undertaken an expansion, which has led to the plant shutdown in late February. This has
impacted our insulin sales this quarter. Needless to say that insulin is a critical growth factor for us
and we believe that this expansion will benefit us next fiscal. We are also factoring in an impact on
account of forex loss this quarter whereby on a sequential basis, the delta is Rs.13 Crores.
There is an additional variable component of licensing income. We had booked Rs.46 Crores in
Q4 FY12 and Rs.9 Crores in Q3 FY13; while this quarter we had a licensing income of only Rs. 2
Crores. Given these factors, I believe that Q4 FY13 was an anomaly and we will see a very smart
recovery next quarter and for the remaining part of next fiscal.
3. Transcript of Biocon’s Q4 & FY13 Earnings Conference Call Page 3
Overall, I am extremely pleased with the kind of performance we put in. Our core business has
been resilient while research services have had a stellar year. Syngene continues to do extremely
well. Research Services has crossed Rs.500 Crores mark this fiscal whereby sales have grown
36% YoY to Rs.557 Crores with EBITDA growing by 25% to Rs.175 Crores.
We have evolved a forex policy over time and today most of our exchange contracts are taken in
the form of range or put options. We believe this will permit us to manage the risks in foreign
exchange more efficiently. If you recall, we continue to book exchange losses in Syngene on
account of hedge contracts against our Research Services contract with BMS. These losses arise
from the simple forward exchange contract that we took in 2007. The losses pertaining to this
contract will end by Q2 FY14 and therefore in the second half of FY14, you will again see a very
strong performance in our Research Services business.
In conclusion, we believe that FY13 has been a very significant year for us at Biocon. We built on
our existing relationships with BMS and Mylan to expand into oral insulin and generic insulin
analog programs respectively. We have delivered consistent growth across all our business
verticals by leveraging efficiencies and our existing partnership platform.
The focus in FY14 is, therefore to sustain this momentum. We aim to transform Biocon into a
leading global insulin player by further expanding our India manufacturing capacities. We aim to
maintain our growth in research and integrated services. We will further our development work in
biosimilars and novel molecules to bring affordable therapeutics to the market. Therefore, the
thrust is firmly on execution with operation efficiencies and complementary cost structures to
ensure that Biocon is well positioned to take the next leap of growth. I will now stop to take
questions. Thank you.
Question and Answer Session
Moderator: Thank you. We will now begin with the Q&A session. We have the first question from
the line of Anmol Ganjoo from Antique.
Anmol Ganjoo: You spoke about the expansion of Biopharmaceutical capacity, especially with
reference to insulin. By what time do you expect this capacity to come on board, and what would
the expanded capacity be like?
Kiran M Shaw: The current capacity expansion is aimed at bridging the demand gap till the
Malaysian facility comes on stream. As you might recollect, the Malaysia facility will come on
stream in 2015, hence we are expanding the existing facility in Bangalore to the maximum extent
possible. We have initiated the process and had to take a shutdown towards the end of Feb 2013.
The facility should be operational next month. While it is a small shutdown, it will expand our
capacity significantly, though we will still be shy of doubling it.
Anmol Ganjoo: My second question is related to raw materials as a percentage of sales. On an
annualized basis we have seen a sharp increase there. Sequentially, the raw material costs are
up 100 bps. What is the big driver here?
Kiran Kumar: The raw material costs are hinged to two pieces, one is the forex movement which
has led to ~20% increase in the imported raw material cost, and the second is the power cost
which has increased ~40% YoY, largely driven by the diesel and the fare hike.
4. Transcript of Biocon’s Q4 & FY13 Earnings Conference Call Page 4
Anmol Ganjoo: In FY13 we are at ~16% effective tax rate, which is ~220 bps jump from last
year, but still lower than a lot of your peers. So from FY14 standpoint, what should we be looking
at?
Kiran Kumar: We have maintained that the tax rate should be ~22%. In the current quarter, the
tax has been moderated on account of the one-time exceptional income.
Anmol Ganjoo: Could you share ballpark growth guidance for FY14 on biopharma?
Kiran M Shaw: When you say Biopharma, I assume that you are referring to our core business,
and we are aiming for 15% growth this fiscal.
Moderator: Thank you. The next question is from the line of Bino Pathiparampil from IIFL. Please
go ahead.
Bino Pathiparampil: Just a couple of questions. First, on the Biopharma business, if I remove
the domestic branded business and the licensing income, the remaining business in dollar terms
shows little growth in FY13. So what was the component that has declined in that part of the
business which led to the overall growth rate in that segment being flat?
Kiran Kumar: If you look at the YoY growth in Biopharmaceuticals, We have seen a 10% growth
at constant exchange rates there.
Bino Pathiparampil: What is the exact forex loss included in the Q4 P&L and which heads does
it go to?
Murali Krishnan: In Q4, we had a forex loss of about Rs.8 Crores which is reflected in the other
expenses line. In Q3, we had a net forex gain of Rs.5 Crores which is reflected in other income.
So the delta is Rs.13 Crores.
Bino Pathiparampil: Now that the insulin analogs are part of the Mylan partnership, what is your
plan for rh-insulin marketing in Europe? Would that be you are planning to do it on your own or
are you planning to find a partner for that?
Kiran M Shaw: We are currently developing the insulin asset on our own for Europe and US. And
once we get marketing authorization, it will open up many options for us.
Bino Pathiparampil: When do you expect to do the final filing?
Abhijit Barve: For the European MAA, our final study report is expected in a few months time.
Once that happens, we will sit down with EMEA and look at the robustness of our dossier for
submission. Post the discussion; we will submit it for marketing authorization, hopefully later this
year. As far as US is concerned, we expect to have a USFDA meeting soon to work out the time
line for commencing our Phase-III trials for the US. Given that we have a US IND in place it
should speed up the process. Our intention is to create an extremely valuable asset by the time of
marketing authorization by working on the development path individually for the time being, so we
will seek a partner at the right stage.
Bino Pathiparampil: Which final study results are we looking forward to, because 2-3 months
back we had the data from Type I diabetics, right?
5. Transcript of Biocon’s Q4 & FY13 Earnings Conference Call Page 5
Abhijit Barve: If you recall the study design, we had a 6-month comparative phase and a 6-
month follow up phase. We have completed the 6-month follow up phase and during the last call
we had said that the data was being analyzed. We have got the data and the study report is under
preparation. We have to submit parts of the study report to further our discussion with EMEA.
Moderator: Thank you. The next question is from the line of Girish Bakhru from HSBC. Please go
ahead.
Girish Bakhru: Just wanted more clarity on the insulin filing in Europe, specifically the rh-Insulin.
Given that there was a new guideline that just came in Nov-Dec with EMEA, are those new
specifications already incorporated in the dossier or do you think that could create some delays in
acceptance of the dossier?
Abhijit Barve: We had gone to the EMEA for discussions a couple of years ago when we
designed those studies. Hence the studies were designed according to the earlier parameters
which we were able to meet. What we want to do now, is sit down with EMEA and get their
feedback to ensure that the data that we have generated to date conforms to the new guidelines.
Our initial sense is that it should comply, but we need to get those feedbacks from the regulators.
Girish Bakhru: But according to your assessment, is there a significant change in the new
guidelines from the previous one?
Abhijit Barve: Our interpretation is that there are small changes, but we have to see how the
regulators view them.
Girish Bakhru: In terms of finding a suitable partner, would that be post-filing or are you still
looking for a suitable partner?
Abhijit Barve: We will be probably doing it post-approval.
Girish Bakhru: And the other question was on Fidaxomicin’s performance within biopharma?
Rakesh Bamzai: Our partner is doing well with sales close to $75 million last year and they are
building up their sales and the markets, country-by-country. So we are going to have an exciting
time in the next 3-4 years.
Girish Bakhru: Can you comment on if there are now more suppliers to Optimer or are you the
sole supplier still at this stage?
Rakesh Bamzai: As you are aware, we have developed this molecule together with Optimer and
have an agreement to manufacture and supply right from the beginning. We continue to be their
only supplier.
Girish Bakhru: Given that there is a lot of talk going on of possible takeover of Optimer by Glaxo
or Astra, would that change the equations for this product?
Rakesh Bamzai: We are in constant touch with Optimer and any such eventuality should impact
us positively.
Moderator: Thank you. The next question is from the line of Krishna Kiran from ICICI Direct.
Please go ahead.
6. Transcript of Biocon’s Q4 & FY13 Earnings Conference Call Page 6
Krishna Kiran: Ma'am, some clarifications. On the insulin facility which we said was closed from
end-February, will it be closed for the next month as well?
Kiran M Shaw: The plant is closed till the end of April.
Krishna Kiran: There is a huge increase in employee cost which is mainly because of those 10
Crores bonuses which we have given, is this right?
Kiran M Shaw: Yes, that is right.it is a one-off cost, so please take it in that way.
Krishna Kiran: And third one, we have mentioned in the press release that we are developing
ANDAs. Will these be through the 505(b) (2) route? Can you throw some color on what kind of
filing are these?
Kiran M. Shaw: We are not doing any 505(b) (2) right now. These are ANDAs aimed at the US
market.
Krishna Kiran: Given that atorvastatin is off patent, have we seen any pricing pressure from
customers in Atorvastatin or Simvastatin?
Rakesh Bamzai: The Simvastatin market in US has decreased from ~50% of the overall statin
market to ~40% this year while the Atorvastatin market has grown. It is because generic
Atorvastatin is taking the market share away from the innovator brand as well as from
Simvastatin. As a generic, Simvastatin is stable now, but Atorvastatin is in early phase so there is
price erosion. But, we are waiting and watching the whole market and we feel it will get stabilized
by end of this year.
Krishna Kiran: Can you tell us gross debt on the books?
Kiran Kumar: It is Rs.164 Crores (long term debt).
Moderator: Thank you. The next question is from the line of Surya Patra from Systematix Shares.
Surya Patra: The Research Services business has been doing well. How long can this
momentum be sustained and which are the factors that give you confidence about the growth
momentum in the business?
Peter Bains: The demand for Research Services continues to grow as the discovery and
development based industrial sectors look to reengineer their R&D systems. Organizations across
industries like Pharma, Biopharma, veterinary and agrochemicals are looking to increase their
externalization. So in terms of demand, we see the trend continuing going forward. Our
confidence in our ability to sustain the momentum that we have achieved in the last 2 years is
built on the basis of our platform and strategy of expanding capabilities across multiple sectors.
We have seen very strong traction in the last 2 years, not only in the traditional chemistry segment
but also in biology, formulation, safety, toxicology, analytical and biologics. We are witnessing
growth in Clinigene as well. Thus, we are seeing substantial broad-based growth across our
capabilities. We have seen strong customer retention, expansion of existing customers, and in the
last year we have added a lot of new customers and partners; some of which have strategic
potential. The demand outlook is therefore based on the reengineering of discovery and
development externally. We are building capacity, capabilities and have strong traction which
indicates that we are moving in the right direction.
7. Transcript of Biocon’s Q4 & FY13 Earnings Conference Call Page 7
Surya Patra: So when you say that you are expanding capabilities, is it on the research front or
is it also for the manufacturing side in Research Services?
Peter Bains: We are expanding on both counts.
Surya Patra: Can you tell us the capex outlay that you are looking for Syngene?
Chinappa: We are finalizing the capex plan and we will disclose that in the coming quarters.
Peter Bains: I would like to add that during the course of the year, we had an investment by GE
Capital which would be used to undertake capacity and capability expansion going forward.
Surya Patra: Is it possible to share the capex number for the entire Biocon Group for FY14?
Murali Krishnan: In the normal course, we generally have an annual capex outlay for facility
augmentation amounting to Rs.150 Crores. Over and above this, will be the capex spends for
Malaysia and Syngene expansion.
Surya Patra: In the opening remarks, Madam has indicated about some provisions relating to
IATRICa. Can you tell us what is the quantum, and where is it accounted for?
Kiran M Shaw: We have indicated that a provision of ~Rs.13 Crores has been made because we
believe that there are some IP related issues that need to be clarified. We are addressing the
same to resolve it expeditiously. Given that it is an exceptional item, it has been netted off with the
exceptional income
Surya Patra: On the Branded Formulations business, we have been doing well and have been
very successful in creating brands out of new launches. Can you give me some sense on the
profitability part at the EBITDA level, and how long would it take to up the margin performance to
the company level?
Rakesh Bamzai: As you know that brand building takes effort, time and money. At this point of
time while it is a profitable business, the EBITDA margins are below the industry standard. We are
currently in the investment phase but going forward it will reach and eventually cross the threshold
in the next 3-4 years time.
Surya Patra: Considering the brand composition, it seems that the profitability should be better
than the normalized branded generic business of the country, is that correct?
Rakesh Bamzai: Yes, but as you are aware, it takes about 2-3 years for the field force to be
totally productive. We have our own internal benchmarks which we have consistently met, but the
aim is to reach to the level of top performers in the industry who have been there for the last 30-
40 years. We are very aggressive, focused and building up our reach, products and brands, and
we are doing it faster than the industry, so it will take us some more time to get to those EBITDA
levels.
Surya Patra: So the current EBITDA levels are lower that the industry and our overall company
EBITDA levels?
Murali Krishnan: That is right.
8. Transcript of Biocon’s Q4 & FY13 Earnings Conference Call Page 8
Moderator: Thank you. The next question is from the line of Ranjit Kapadia from Centrum
Broking. Please go ahead.
Ranjit Kapadia: My question relates to Syngene listing. After the GE investment of 1.25 billion,
what is the plan for Syngene listing?
Kiran M Shaw: As far as Syngene listing is concerned, we want a consistent track record of
profitable quarters. So we are looking at listing Syngene by FY15.
Ranjit Kapadia: How many customers do we have in US as well as in Europe for atorvastatin?
Rakesh Bamzai: We were early in Europe and have around 3-4 customers in Europe. In US, we
have 5 customers, all of whom are expecting approval.
Ranjit Kapadia: Do you think that despite the 97-98% price fall, they will still be competitive…?
Rakesh Bamzai: Yes, our technology is good.
Moderator: Thank you. The next question is from the line of Arvind Bothra from Bank of America.
Arvind Bothra: Just a question on the deferred revenue part which is there in the current
liabilities. Can you let us know the movement there, because I believe 215 Crores from Pfizer was
lying there, that gets reduced now and possibly 20 million from Mylan gets added?
Murali Krishnan: As of last year in USD terms, we had ~97 million in deferred income. During the
course of this year we spent about 7-10 million USD and about 40 million USD has been taken to
the exceptional line in Q-4. So, as of now, we have ~50 million USD remaining for rh-insulin and
with the additional monies coming from Mylan, now the remaining amount of ~70 million USD is
grouped under current and non-current liabilities.
Arvind Bothra: Kiran has earlier mentioned that much of our R&D large investments are being
taken care of through licensing and partnerships, But we have the EU and US trials for rh-insulin,
along with other molecules under development. How would the R&D spend pan out in the coming
years as a percentage of sales?
Murali Krishnan: The monies received and shown under deferred income amounting to ~ 70
million USD should be able to largely address the expenses, towards our insulin development.
But, in terms of the other R&D expenses, it will continue to be at the current levels or will be
increasing year on year.
Arvind Bothra: Are we expecting any milestone income on the MAbs portfolio in FY14?
Kiran M Shaw: I want to clarify here that there is no milestone payments involved in this deal, but
we are expecting approval and possibly commercial launch of Herceptin in India.
Moderator: Thank you. The next question is from the line of Anand Rawani from Wrighton
Research.
Anand Ravani: Syngene has been delivering strong set of numbers. Does the management
believe that Syngene can fund their growth on their own, and if yes, any thoughts on spinning off
Syngene and unlock the value?
9. Transcript of Biocon’s Q4 & FY13 Earnings Conference Call Page 9
Kiran M Shaw: As you know, GE has taken a stake in Syngene and they have set the valuation
benchmark at ~$300 million for Syngene, which implies that anyone investing at that level expects
a huge value unlock at listing. Given the fact that this investment has come in and will fund the
much talked about expansion, we certainly believe that Syngene is in a strong position to fund
their own growth, in fact, they are now debt-free and they are well positioned to fund the next
phase of their growth. As I mentioned earlier, we are looking at an IPO in FY15.
Anand Ravani: So it will be an IPO and not simple spinning off from Biocon, is that right?
Kiran M Shaw: We cannot discuss all the details of that, but certainly, we will unlock significant
value at that time.
Moderator: Thank you. The next question is from the line of Nimesh Mehta from Research Delta
Advisors.
Nimesh Mehta: You just mentioned that you will be launching generic Herceptin in India. Just
wanted to know in what format will this be. Are we likely to look at compulsory license?
Kiran M Shaw: This is not a patented drug in India; in fact I think there has been a wrong
interpretation of Herceptin in India. There is no question of compulsory licensing as this is a
straight forward generic Herceptin. We have met all the biosimilar guidelines prescribed by the
drug regulator in India, we have completed patient enrolment and we will hopefully be concluding
all these trials by the end of the year. I must emphasize that we will launch the product post the
regulatory approval, without seeking compulsory licensing.
Nimesh Mehta: So there is no patent on this product in India?
Kiran M. Shaw: No.
Nimesh Mehta: The second is a book-keeping question. As a percentage of sales, how much
would the revenue from BMS contract be in Syngene?
Chinappa: Most of the growth is coming from the other verticals. The BMS portion is gradually
dipping and is now between 20% and 30%.
Nimesh Mehta: Could you clarify about the need to wait for Syngene’s listing in FY15 with
respect to the BMS contract?
Kiran M Shaw: The exchange losses are on account of some hedges that we had taken on
foreign exchange in 2007 on account of the BMS contract will end by Q2 FY14. Thereafter, we will
have a robust growth which will not get impacted by these kinds of historic deals. We have been
waiting for this to start preparing ourselves for a likely IPO.
Nimesh Mehta: So, we are already booking some losses for that earlier contract in the current
numbers as well?
M.B. Chinappa: In the last year, growth in USD terms has been 26%. In addition, we have gained
another 10% due to the rupee depreciation. Of the 10%, most of it has been set-off by forex
losses and increase in imports, and only 3% gain has percolated down to profits. Post the expiry
of this contract, we expect these losses to disappear and profitability to improve.
10. Transcript of Biocon’s Q4 & FY13 Earnings Conference Call Page 10
Moderator: Thank you. The next question is from the line of Ashish Thakkar from CIMB. Please
go ahead.
Ashish Thakkar: Could you let us know about the status of the Malaysia Insulin plant? Are we on
track to commercialize the facility by FY14 or ’15?
Kiran M Shaw: As I mentioned earlier, everything is on track and we are confident of meeting the
2015 timeline.
Ashish Thakkar: Could you quantify the capacity we are setting up in Malaysia?
Kiran M Shaw: We cannot share capacity details for confidentiality reasons.
Ashish Thakkar: So, if I come to India then, what is the installed capacity as far as the …?
Kiran M Shaw: We cannot share capacity details for confidentiality reasons.
Ashish Thakkar: But post this Malaysia plant coming in, we will be having one of the biggest
setup in Asia
Kiran M Shaw: Yes, absolutely.
Moderator: Thank you. The next question is from the line of Hitesh Mahida from Fortune
Financial. Please go ahead.
Hitesh Mahida: I had just two queries; one is what is with the progress on Itolizumab? And
secondly, what would be the likely market size of Herceptin in India?
Abhijit Barve: Itolizumab is approved in India by DCGI and we will be commercializing the
product soon, as Alzumab. We recently had a pre IND meeting with the FDA, and have received
favorable feedback on our development strategy for starting clinical work in the US. We are
looking at multiple indications for this particular product and at the same time we are also looking
at partnering this particular asset.
Rakesh Bamzai: Herceptin is used primarily for metastatic breast cancer and several indication
expansions are being pursued. So today, the market is close to Rs.250 Crores, but when we
launch the product, we will try to expand the market further. Hence, it is expected to have a lot of
potential in India and other emerging markets. We are looking at a good value creation in the next
2-3 years because of generic Herceptin.
Hitesh Mahida: And just one last question, what is our field force in India and are you looking to
expand it further?
Rakesh Bamzai: Today, we have ~1500 people on ground in India and 200 people in the
corporate office, so 1700 people in this branded formulations initiative. We will expand based on
the requirement of that particular segment. The growth going forward will come through our
brands and increasing reach.
Moderator: Thank you. The next question is from the line of Sachin Kasera, from Lucky
Investments.
11. Transcript of Biocon’s Q4 & FY13 Earnings Conference Call Page 11
Sachin Kasera: Just a follow up on this branded formulations. What was the field force addition in
FY13?
Rakesh Bamzai: We have increased our field force by 5-7% over last year.
Sachin Kasera: This year we have grown at 35%, much higher than the market. What is the
outlook for FY14, do you think this momentum can be sustained?
Rakesh Bamzai: Yes, we feel we will continue growing this way.
Sachin Kasera: You also mentioned the profitability share is lower than the company average. Is
it significantly lower, like it is still in single digit or it is much higher?
Rakesh Bamzai: It is not very high, but it is not a single digit number.
Sachin Kasera: And secondly, on this Herceptin, what is the current cost of this treatment in
India? You mentioned the size is around Rs.250 Crores.
Rakesh Bamzai: The cost of therapy varies on the dosage, condition of the patient and on the
number of cycle that the patient is recommended. The innovator has priced this product quite
aggressively; in fact they have dropped the pricing in the last 6 months. But, we will be able to
bring a good value proposition for the patients in India.
Sachin Kasera: I think the current cost is roughly ~80,000 to 1 lakh a vial. So I was wondering
that if we have to give good value to the patient, then the current market is much smaller than the
addressable market because of the price.
Rakesh Bamzai: There are lots of patients who need Herceptin but cannot get it because it is
very expensive. So we have to keep that in mind, as we strongly believe in affordable innovation.
Moderator: Thank you. The next question is from the line of Kartik Mehta, from ICICI Securities.
Please go ahead.
Kartik Mehta: Can you talk on the outlook of the Insulin market in India in terms of the pricing,
your market share amongst all the domestic companies, and also vis-à-vis your pricing versus the
MNC pricing?
Rakesh Bamzai: Insugen has a market share of close to 10% in India while we have a ~35%
market share in glargine. We are building this market up with the new devices, despite being
under NPPA. We are talking to the regulators to try and have a fair pricing system in this Country.
Kartik Mehta: Could you give an outlook on the pricing? What would be the expected discount
that you would have to the MNCs going ahead? And are you trying to maintain market share or
would it be more…?
Rakesh Bamzai: We are doing very well in terms of market share in all the markets that we are
participating, India being a branded generic market is taking little more time. We have close to
10% market share. Our value proposition is very good: a top quality, global product at reasonable
prices, complete care for a diabetes patient including management of HbA1c and patient care
through our call center which has been appreciated by patients and physicians alike, thereby
increasing our market share.
12. Transcript of Biocon’s Q4 & FY13 Earnings Conference Call Page 12
Kartik Mehta: Is there any money that we received from Pfizer which is shown as deferred
revenue?
Murali Krishnan: Still a balance of ~ 50 million USD is being shown under deferred revenues.
Kartik Mehta: What will be the trigger for that amount to be brought into the P&L- a new partner?
Kiran M Shaw: I think we had explained to you right up front that we still need to develop
recombinant human insulin. And there is a certain obligation we have to contribute towards
developing insulin analogs. So that is the amount that still is kept in deferred revenue.
Moderator: Thank you. The next question is from the line of Meeta Shetty from Asian Market
Securities. Please go ahead.
Meeta Shetty: We have seen the core margins come down in FY13, but now going ahead with
Herceptin coming in and even Fidaxomicin sales, not to forget to mention the branded
formulations as well. What kind of expansion can we see going ahead?
Chinappa: Excluding R&D expenses and R&D income, you would notice that there has been a
general improvement and we expect that to continue.
Meeta Shetty: Secondly, on the ANDAs that we expect to file, how many ANDAs should be filed
by H1 FY14?
Rakesh Bamzai: We have just started the process around 6-8 months back and there is time
needed for developments. There are 20 products in the pipeline, we will start filing in 2 years from
now, and eventually we will get approval and start commercializing the products.
Meeta Shetty: So that means that until FY15 we will not be having any significant filing?
Rakesh Bamzai: Yes.
Meeta Shetty: On the gross debt actually, you mentioned 164 Crores, but that is only the long
term borrowing, Can you give me the entire debt amount?
Kiran Kumar: ~ Rs.250 Crores
Meeta Shetty: On the Malaysian CAPEX, we had a US$160 million CAPEX planned. Of which
how much would we have already spent on it?
Murali Krishnan: It is not completely spent as there is long lead time for equipment. A large part
of capex spend will come during the course of FY 14 and the balance during next fiscal. About
80% of estimated capex would have been spent by the end of this fiscal.
Meeta Shetty: So that means only about 15% or 20% of that would have been incurred so far. If I
remember correctly we were supposed to take some debt for this CAPEX. So are we going to still
go ahead and take debt or …?
Murali Krishnan: Yes, we have gone ahead and started taking debt in Malaysia. Rs. 165 crores
debt is largely coming from there.
13. Transcript of Biocon’s Q4 & FY13 Earnings Conference Call Page 13
Meeta Shetty: So whatever debt was supposed to come on the books is already there?
Murali Krishnan: No, not all of it is there as of today. There is more to come over a period of
time.
Meeta Shetty: So shall we expect some increase in debt towards the end of…
Murali Krishnan: Certainly yes.
Meeta Shetty: Because we were talking about 60% of the entire CAPEX to be fund through debt,
is that the way we should still look at it?
Murali Krishnan: Yes, you are right. Large part of this debt will be taken during FY14.
Moderator: Thank you. The next question is from the line of KC Suri from Span Capital. Please
go ahead.
KC Suri: Could you run us again through the accounting part of the insulin analogs development
work? Is my understanding correct that none of the developmental expenses will come through
P&L?
Murali Krishnan: It will come through P&L under R&D expenses, where deferred income will set
it off making it neutral in the P&L.
KC Suri: The 50 million which we have residual from Pfizer would be used for rh-Insulin as well
as your share for…?
Murali Krishnan: No, that is only for rh-Insulin.
KC Suri: And the 20 million?
Murali Krishnan: The 20 million will be for our share of Glargine.
KC Suri: And what were the other two?
Murali Krishnan: Yes, Lispro and Aspart will also have some play in that.
KC Suri: You would receive additional funding then?
Murali Krishnan: No.
Moderator: The next question is from the line of Krishnendu Saha from Quantum Asset
Management.
Krishnendu Saha: What is the exceptional item of 200 Crores related to?
Kiran Kumar: It relates to the deferred revenue pertaining to the insulin analogs portion of the
receipts from the Pfizer termination. We have taken them to the P&L at this point in time.
Krishnendu Saha: But you are supposed to set it off against the R&D expenditure, so I was
wondering what would change in this?
14. Transcript of Biocon’s Q4 & FY13 Earnings Conference Call Page 14
Kiran Kumar: We have explained it earlier in the call, so it is better that we take it offline.
Moderator: Thank you. We have the next question follow up question from the line of Bino
Pathiparampil from IIFL.
Bino Pathiparampil: You had mentioned about the Trastuzumab Phase III study in Europe. Can
we get some more details?
Abhijit Barve: The lead has been taken by Mylan. That study has already been initiated and we
have approvals in certain big countries to start the study as well. We are hoping to ramp up going
forward. You can get further details on the European clinical trial registry.
Bino Pathiparampil: Finally after this change in accounting for insulin analogs development, Will
the R&D costs remain at the current levels?
Kiran Kumar: No. It will increase as we go forward, depending on spends in the MAbs program.
Moderator: Thank you. The next question is from the line of Krishna Prasad from Kotak
Securities. Please go ahead.
Krishna Prasad: Could you explain the lower tax rate for the current quarter?
Kiran Kumar: Our average tax rate has been around 22% in the current year. If you look at the
Q4, the tax rate has been lower on account of the exceptional item, which has been booked.
Krishna Prasad: So does that mean you did not pay any tax on the…
Kiran Kumar: We have a lower tax rate on that exceptional income, about 10%
Krishna Prasad: So going forward, if I have to project a tax rate, it would be closer to 20%.
Kiran Kumar: Yes, around 22%, that is right.
Krishna Prasad: Just one additional question on the deferred income. If I look at your opening
balance of deferred income and then if I do the math on how much has got recognized and how
much is the Pfizer number, which has got moved out. It does not add up to the closing number
that you have. Is there something that is being missed here?
Murali Krishnan: If you add up the Rupee numbers it will not add up, because the money is
received in USD and accounted in the books of Biocon SA. This amount gets retranslated in to
Rupee amount at the end of each quarter and hence the math cannot be done in rupee terms.
Krishna Prasad: In an earlier reply, you spoke about the Mylan income which is primarily for
Glargine. Is there a reason there, because I suppose it would be covering all the three products
which are there as part of your deal, right?
Kiran M Shaw: The money will go towards all analogs, not just Glargine.
Krishna Prasad: And regarding your launch of Herceptin in India, do you expect to see any more
players at the time of launch?
15. Transcript of Biocon’s Q4 & FY13 Earnings Conference Call Page 15
Rakesh Bamzai: In India, we will be the second player but the third brand. The Innovator has two
brands for the same product.
Krishna Prasad: But in terms of how many more do you expect to enter?
Rakesh Bamzai: There are a couple of more people developing it, but they are far away.
Moderator: Thank you. We have the last question from the line of Sachin Kasera from Lucky
Investments.
Sachin Kasera: Could you share the breakup of the 110 Crores of other income?
Kiran Kumar: The other income largely comprises of the dividend and interest income on our
current investments. In addition to that in the current year we had a one-off income which is about
Rs.30 Crores which was mentioned in the notes.
Sachin Kasera: What is this 30 Crores related to?
Kiran M Shaw: We have explained this in the previous quarter. It is an income that we received
as a one-off on the termination of a contract.
Sachin Kasera: Is this a part of Biocon or Syngene?
Kiran M Shaw: It is a part of Biocon.
Moderator: Thank you. I would now like to hand the floor back to members of the management
for closing comments.
Kiran M Shaw: Thank you very much for joining and participating in this investor call. I look
forward to speaking with you at the next quarterly conference call. Thank you.
Moderator: Thank you. Ladies and gentlemen, on behalf of Biocon Ltd, that concludes this
conference all. Thank you for joining us.
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Note: This document has been edited to improve readability.