- Solara Active Pharma Sciences is an Indian API manufacturer with a large portfolio of over 50 molecules. The global API market is valued at around US$160 billion and growing, however China currently dominates with over 30% market share while India has only 8-10%.
- Environmental issues in China have opened up opportunities for Indian API players like Solara. Solara is well positioned to benefit given its cost efficient manufacturing capabilities and expanded capacities. It expects to maintain 16-21% revenue and EBITDA growth over FY19-21.
- Solara has a diverse API portfolio including high volume molecules like Ibuprofen (where it is a major global supplier), Gabapentin, Ranit
Iol chemicals and pharmaceuticals multibagger 2021 & SIGN-UP new multibagger...futurecapsadvisor
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1. Fairfax-led consortium offers to buy BlackBerry for $4.7B, with Fairfax owning 10% of BlackBerry and contributing its shares.
2. Celebrity Fashions allots shares worth 24% stake to SBI in lieu of debt from a restructuring exercise.
3. Germany's Brenntag acquires chemical distribution arm of Zytex for $14M to strengthen its nutrition and health business in India.
Aarti Drugs Ltd is an API manufacturer with facilities in India. It produces a wide range of drugs including vitamins, antibiotics, anti-fungals, and more. The company is expected to see strong revenue and profit growth over the next few years driven by expanding capacity and new product additions. Key growth segments are expected to be antibiotics, growing at a 21% CAGR, and anti-protozoals like metronidazole, expanding capacity 100%. Overall revenues are forecast to increase 16% annually to Rs. 1481 crores by FY17. The report initiates coverage with a buy rating and target price of Rs. 675 per share.
Sun Pharmaceuticals acquired Ranbaxy in a $4 billion all-share deal in 2014. This created the fifth largest specialty generics company in the world. The merger strengthened Sun Pharma's global footprint, distribution network, and portfolio in key therapeutic areas. It gained access to Ranbaxy's brands and markets in regions like the US, Europe, Brazil, Russia, and China. However, Ranbaxy had been struggling financially prior to the acquisition due to regulatory and legal issues.
Case of Daiichi Sankyo takeover of RanbaxyAdityakapoors
This case was prepared with the objective to study merger synergy, valuation and how poor due diligence will have consequences on companies Balance Sheet.
Project Report On M & A of Ranbaxy ltd. And Daiichi sankyoNikita Agarwal
Daiichi Sankyo acquired Ranbaxy in a deal that was expected to generate synergies by combining Daiichi Sankyo's strengths in proprietary medicines with Ranbaxy's leadership in generics. Daiichi Sankyo saw the acquisition as critical to achieving its goal of $13.1 billion in sales by 2015. Post-acquisition, Daiichi Sankyo and Ranbaxy launched a hybrid business in Brazil to expand both companies' presence in the market by having Ranbaxy support Daiichi Sankyo's subsidiary in selling branded generics, in addition to innovative drugs, while Ranbaxy's subsidiary continued independently promoting generics and entering branded generics.
Sun Pharma acquired Ranbaxy in 2014 to become the largest pharmaceutical company in India and fifth largest globally. The acquisition combined Sun Pharma's strengths in specialty generics with Ranbaxy's large portfolio of FDA-approved drugs. However, Ranbaxy was facing issues with the FDA that led previous owner Daiichi Sankyo to sell. While the deal created a global leader, Sun Pharma took on Ranbaxy's debt and manufacturing problems that could impact financial performance.
Ranbaxy daichii acquisition final presentationAshutosh Mantry
Daiichi Sankyo acquired Ranbaxy in 2008 for $4.6 billion. This allowed Daiichi to gain entry into the generic drug market and emerging markets. However, Daiichi failed to conduct proper due diligence on pending FDA issues at Ranbaxy and had to write down $3.45 billion in goodwill in 2009. While the deal provided synergies, regulatory issues ultimately made it a failure for Daiichi.
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 !!
..
#multibagger #stockmarcket #futurecaps #investindia
1. Fairfax-led consortium offers to buy BlackBerry for $4.7B, with Fairfax owning 10% of BlackBerry and contributing its shares.
2. Celebrity Fashions allots shares worth 24% stake to SBI in lieu of debt from a restructuring exercise.
3. Germany's Brenntag acquires chemical distribution arm of Zytex for $14M to strengthen its nutrition and health business in India.
Aarti Drugs Ltd is an API manufacturer with facilities in India. It produces a wide range of drugs including vitamins, antibiotics, anti-fungals, and more. The company is expected to see strong revenue and profit growth over the next few years driven by expanding capacity and new product additions. Key growth segments are expected to be antibiotics, growing at a 21% CAGR, and anti-protozoals like metronidazole, expanding capacity 100%. Overall revenues are forecast to increase 16% annually to Rs. 1481 crores by FY17. The report initiates coverage with a buy rating and target price of Rs. 675 per share.
Sun Pharmaceuticals acquired Ranbaxy in a $4 billion all-share deal in 2014. This created the fifth largest specialty generics company in the world. The merger strengthened Sun Pharma's global footprint, distribution network, and portfolio in key therapeutic areas. It gained access to Ranbaxy's brands and markets in regions like the US, Europe, Brazil, Russia, and China. However, Ranbaxy had been struggling financially prior to the acquisition due to regulatory and legal issues.
Case of Daiichi Sankyo takeover of RanbaxyAdityakapoors
This case was prepared with the objective to study merger synergy, valuation and how poor due diligence will have consequences on companies Balance Sheet.
Project Report On M & A of Ranbaxy ltd. And Daiichi sankyoNikita Agarwal
Daiichi Sankyo acquired Ranbaxy in a deal that was expected to generate synergies by combining Daiichi Sankyo's strengths in proprietary medicines with Ranbaxy's leadership in generics. Daiichi Sankyo saw the acquisition as critical to achieving its goal of $13.1 billion in sales by 2015. Post-acquisition, Daiichi Sankyo and Ranbaxy launched a hybrid business in Brazil to expand both companies' presence in the market by having Ranbaxy support Daiichi Sankyo's subsidiary in selling branded generics, in addition to innovative drugs, while Ranbaxy's subsidiary continued independently promoting generics and entering branded generics.
Sun Pharma acquired Ranbaxy in 2014 to become the largest pharmaceutical company in India and fifth largest globally. The acquisition combined Sun Pharma's strengths in specialty generics with Ranbaxy's large portfolio of FDA-approved drugs. However, Ranbaxy was facing issues with the FDA that led previous owner Daiichi Sankyo to sell. While the deal created a global leader, Sun Pharma took on Ranbaxy's debt and manufacturing problems that could impact financial performance.
Ranbaxy daichii acquisition final presentationAshutosh Mantry
Daiichi Sankyo acquired Ranbaxy in 2008 for $4.6 billion. This allowed Daiichi to gain entry into the generic drug market and emerging markets. However, Daiichi failed to conduct proper due diligence on pending FDA issues at Ranbaxy and had to write down $3.45 billion in goodwill in 2009. While the deal provided synergies, regulatory issues ultimately made it a failure for Daiichi.
Sun Pharma acquired Ranbaxy in 2014 to become the largest pharmaceutical company in India and 5th largest specialty generic company globally. The $4 billion all-stock deal gave Ranbaxy shareholders 0.8 Sun Pharma shares for each of theirs. It combined their revenues of $4.2 billion but posed problems integrating Ranbaxy's manufacturing plants that had FDA violations. The acquisition was meant to boost Sun Pharma's generic drug portfolio in the US through Ranbaxy's approvals while addressing its manufacturing issues.
Reliance Industries reported an 18.9% rise in standalone net profit for the quarter ended June 30, 2013, despite a 4.6% fall in revenues. WPI inflation in India increased to 4.86% in June, driven by higher food prices. Abu Dhabi's Al Dahra Holdings will acquire a 20% stake in Kohinoor Foods for $18.8 million. Tata Global Beverages will monetize a land parcel in Bangalore through a deal worth $32.5 million. Texmaco Rail and Engineering will acquire a 24.9% stake in Kalindee Rail Nirman Engineers for $4.45 million.
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.
Cipla is an Indian pharmaceutical company that was originally focused on contract manufacturing but is now looking to become a direct market player globally. It has acquired two companies, Invagen and Exelan, to expand its presence in the lucrative US market. It plans to launch several respiratory drugs in the US in the next 2-4 years as that market has limited competition. Cipla has a strong pipeline of generics and aims to file 20-25 new drug applications annually. While India will remain important, Cipla is restructuring to focus more on key international markets like the US, Europe, and South Africa.
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.
The document summarizes the acquisition of Ranbaxy by Sun Pharma in 2014. Some key points:
- The $4 billion acquisition created the 5th largest generic pharma company worldwide with combined sales of $4.2 billion.
- The deal provided Sun Pharma access to Ranbaxy's portfolio of acute and chronic treatment drugs across 55 countries through 40 manufacturing facilities.
- Financially, the acquisition helped Sun Pharma's income from operations and gross profits increase according to post-acquisition financial reports.
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.
Sun Pharma acquired Ranbaxy in 2014 in a $4 billion deal to become the largest pharmaceutical company in India and fifth largest globally. The acquisition made Sun Pharma the largest Indian pharma company in the US and provided Ranbaxy with API manufacturing capabilities to resume exports to the US. However, Sun Pharma also assumed $800 million of Ranbaxy's debt and regulatory issues remain resolving quality issues at Ranbaxy's plants that were banned by the USFDA. The merger aimed to create synergies but was expected to negatively impact Sun Pharma's financial performance in the near term.
The document provides an analysis of trends and business opportunities in BRIC economies through 2050. It notes that the world's population is aging due to increased life expectancy and lower birth rates. While developed markets have an older median age, some emerging markets like India and China will have a significant elderly population. Technology opportunities exist in products to help the elderly. Rising incomes in BRIC cities and preference for energy efficiency also present opportunities. Working women and single-person households are growing trends that will transform household product needs.
- The Japanese pharmaceutical company Daiichi Sankyo acquired a majority stake in the Indian company Ranbaxy Laboratories for $3.4-4.6 billion. This creates an integrated pharmaceutical company spanning generics, research, and production across various markets. The combination provides growth opportunities through synergies in R&D, manufacturing, and market reach.
This document discusses the merger between Ranbaxy and Daiichi Sankyo. It provides background on both companies and details of the merger deal. Daiichi Sankyo acquired a 63.92% stake in Ranbaxy for $4.98 billion, valuing Ranbaxy at $8.5 billion. The deal gave Daiichi access to Ranbaxy's low-cost manufacturing base and global operations in 56 countries. It provided Ranbaxy benefits like access to new markets, R&D resources, and the Japanese market. A reverse valuation of Ranbaxy found its fair market price to be between INR 467-834 per share.
Daiichi Sankyo acquired Ranbaxy in an all-cash deal valued at $4.9 billion. Daiichi aimed to expand into generics and emerging markets through the acquisition, while Ranbaxy benefited from access to Daiichi's R&D capabilities and the Japanese market. However, Daiichi failed to adequately address regulatory issues at Ranbaxy facilities that were uncovered after the deal, resulting in billions in write-downs and financial losses for Daiichi.
Ranbaxy is India's largest pharmaceutical company with a global presence in 43 countries. It produces generic medicines and has world-class manufacturing facilities. In 2008, Ranbaxy entered an alliance with Daiichi Sankyo to create an innovator and generic pharmaceutical powerhouse. The Indian pharmaceutical industry is the 3rd largest globally by volume and Ranbaxy is a leading player in this industry.
The document summarizes the acquisition of Indian pharmaceutical company Ranbaxy by Japanese company Daiichi Sankyo. It describes how Ranbaxy was the largest pharmaceutical company in India but faced growing competition. Daiichi Sankyo was interested in expanding into generics and gaining access to new markets. The $4.9 billion acquisition would benefit both companies by providing access to new markets, manufacturing and R&D capabilities, and strengthening their positions in the global pharmaceutical industry.
The pharmaceutical industry in India is the third largest in the world by volume. It has grown significantly since the 1960s and now holds a market share of $14 billion in the US. Exports of pharmaceutical products from India have grown at a compound annual rate of 21.25% between 2006-07 and 2008-09. Ranbaxy Laboratories is a major Indian pharmaceutical company with global sales of over $1 billion in 2006. It has manufacturing facilities in several countries and markets drugs in over 125 countries. The Indian pharmaceutical industry is poised for continued growth and increasing global market share in the coming years.
The document discusses the strategy of mergers and acquisitions (M&A) in the pharmaceutical industry, using Sun Pharmaceuticals' acquisition of Ranbaxy as a case study. It analyzes factors like declining revenues and increasing costs at Sun Pharma post-previous acquisitions that led to the Ranbaxy deal. The acquisition aimed to boost revenues, reduce costs through synergies, and expand operations in key markets like the US, India, and emerging markets. However, integration challenges, regulatory issues, and pricing pressures impacted profits initially. The document also evaluates Sun Pharma's competitors in India, customer segments, and opportunities in emerging pharmaceutical markets.
The document provides rankings and analysis of emerging growth stocks as of August 8, 2016. Eight stocks were added to the top 25 rankings due to strong recent financial performance or positive catalysts, including Gold Resource, Sodastream, Xencor, Carbonite, ANI Pharmaceuticals, MacroGenics, Huttig Building Products, and Parsley Energy. Nine stocks were removed from the rankings for reasons such as declining relative strength following poor earnings results or failure to meet minimum criteria. The rankings are generated weekly based on quantitative metrics to identify small, fast-growing companies.
Q4 & FY13 Post Earnings Conference Call April 26, 2013Biocon
The document is a transcript of Biocon's Q4 & FY13 earnings conference call. Key points include:
- Group sales grew 18% to Rs. 2,428 Crores, with strong growth in Research Services (36% to Rs. 557 Crores) and Healthcare (34% to Rs. 348 Crores).
- Group net profit grew over 50% to Rs. 509 Crores due to exceptional income from re-licensing generic insulin analogs to Mylan.
- Biocon extended its partnership with Mylan for generic insulin analogs, which significantly reduces Biocon's development costs and changes the profit sharing structure.
- The reading of Q4 numbers was impacted by exceptional income and
Ranbaxy has a choice between continuing as a manufacturer of generic drugs or developing proprietary medicines. It could potentially do both by continuing low-cost generic production while beginning to develop patented drugs in India, which has a suitable but improving infrastructure for innovation. Ranbaxy should focus on both developing and developed markets through mergers and strategic partnerships that give it access to foreign markets and resources, especially in geographically and culturally close countries like Russia and China.
The document provides an overview of the pharmaceutical industry in India and details regarding Sun Pharma and Lupin, two major Indian pharmaceutical companies. It discusses the regulatory environment, business models, financial performance, acquisitions, and growth strategies of Sun Pharma and Lupin. The summary highlights both companies' focus on expanding their global footprint and specialty product portfolios through acquisitions and internal research and development.
IPCA Laboratories Ltd is an Indian pharmaceutical company with a presence in domestic branded formulations, global branded/generic formulations, and APIs. The document recommends IPCA as an Alpha/Alpha+ stock and outlines factors that will drive its growth over the next 3 years, including: 1) 16-18% growth in domestic formulations business; 2) Increased sales from US generics business once issues at its Indore facility are resolved; 3) Scaling up its institutional anti-malaria business to Rs. 1000 crores. IPCA is well positioned in the anti-malarial space due to its API manufacturing and participation in programs like AMFm that aim to increase global access to affordable ACT treatments.
Sun Pharma acquired Ranbaxy in 2014 to become the largest pharmaceutical company in India and 5th largest specialty generic company globally. The $4 billion all-stock deal gave Ranbaxy shareholders 0.8 Sun Pharma shares for each of theirs. It combined their revenues of $4.2 billion but posed problems integrating Ranbaxy's manufacturing plants that had FDA violations. The acquisition was meant to boost Sun Pharma's generic drug portfolio in the US through Ranbaxy's approvals while addressing its manufacturing issues.
Reliance Industries reported an 18.9% rise in standalone net profit for the quarter ended June 30, 2013, despite a 4.6% fall in revenues. WPI inflation in India increased to 4.86% in June, driven by higher food prices. Abu Dhabi's Al Dahra Holdings will acquire a 20% stake in Kohinoor Foods for $18.8 million. Tata Global Beverages will monetize a land parcel in Bangalore through a deal worth $32.5 million. Texmaco Rail and Engineering will acquire a 24.9% stake in Kalindee Rail Nirman Engineers for $4.45 million.
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.
Cipla is an Indian pharmaceutical company that was originally focused on contract manufacturing but is now looking to become a direct market player globally. It has acquired two companies, Invagen and Exelan, to expand its presence in the lucrative US market. It plans to launch several respiratory drugs in the US in the next 2-4 years as that market has limited competition. Cipla has a strong pipeline of generics and aims to file 20-25 new drug applications annually. While India will remain important, Cipla is restructuring to focus more on key international markets like the US, Europe, and South Africa.
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.
The document summarizes the acquisition of Ranbaxy by Sun Pharma in 2014. Some key points:
- The $4 billion acquisition created the 5th largest generic pharma company worldwide with combined sales of $4.2 billion.
- The deal provided Sun Pharma access to Ranbaxy's portfolio of acute and chronic treatment drugs across 55 countries through 40 manufacturing facilities.
- Financially, the acquisition helped Sun Pharma's income from operations and gross profits increase according to post-acquisition financial reports.
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.
Sun Pharma acquired Ranbaxy in 2014 in a $4 billion deal to become the largest pharmaceutical company in India and fifth largest globally. The acquisition made Sun Pharma the largest Indian pharma company in the US and provided Ranbaxy with API manufacturing capabilities to resume exports to the US. However, Sun Pharma also assumed $800 million of Ranbaxy's debt and regulatory issues remain resolving quality issues at Ranbaxy's plants that were banned by the USFDA. The merger aimed to create synergies but was expected to negatively impact Sun Pharma's financial performance in the near term.
The document provides an analysis of trends and business opportunities in BRIC economies through 2050. It notes that the world's population is aging due to increased life expectancy and lower birth rates. While developed markets have an older median age, some emerging markets like India and China will have a significant elderly population. Technology opportunities exist in products to help the elderly. Rising incomes in BRIC cities and preference for energy efficiency also present opportunities. Working women and single-person households are growing trends that will transform household product needs.
- The Japanese pharmaceutical company Daiichi Sankyo acquired a majority stake in the Indian company Ranbaxy Laboratories for $3.4-4.6 billion. This creates an integrated pharmaceutical company spanning generics, research, and production across various markets. The combination provides growth opportunities through synergies in R&D, manufacturing, and market reach.
This document discusses the merger between Ranbaxy and Daiichi Sankyo. It provides background on both companies and details of the merger deal. Daiichi Sankyo acquired a 63.92% stake in Ranbaxy for $4.98 billion, valuing Ranbaxy at $8.5 billion. The deal gave Daiichi access to Ranbaxy's low-cost manufacturing base and global operations in 56 countries. It provided Ranbaxy benefits like access to new markets, R&D resources, and the Japanese market. A reverse valuation of Ranbaxy found its fair market price to be between INR 467-834 per share.
Daiichi Sankyo acquired Ranbaxy in an all-cash deal valued at $4.9 billion. Daiichi aimed to expand into generics and emerging markets through the acquisition, while Ranbaxy benefited from access to Daiichi's R&D capabilities and the Japanese market. However, Daiichi failed to adequately address regulatory issues at Ranbaxy facilities that were uncovered after the deal, resulting in billions in write-downs and financial losses for Daiichi.
Ranbaxy is India's largest pharmaceutical company with a global presence in 43 countries. It produces generic medicines and has world-class manufacturing facilities. In 2008, Ranbaxy entered an alliance with Daiichi Sankyo to create an innovator and generic pharmaceutical powerhouse. The Indian pharmaceutical industry is the 3rd largest globally by volume and Ranbaxy is a leading player in this industry.
The document summarizes the acquisition of Indian pharmaceutical company Ranbaxy by Japanese company Daiichi Sankyo. It describes how Ranbaxy was the largest pharmaceutical company in India but faced growing competition. Daiichi Sankyo was interested in expanding into generics and gaining access to new markets. The $4.9 billion acquisition would benefit both companies by providing access to new markets, manufacturing and R&D capabilities, and strengthening their positions in the global pharmaceutical industry.
The pharmaceutical industry in India is the third largest in the world by volume. It has grown significantly since the 1960s and now holds a market share of $14 billion in the US. Exports of pharmaceutical products from India have grown at a compound annual rate of 21.25% between 2006-07 and 2008-09. Ranbaxy Laboratories is a major Indian pharmaceutical company with global sales of over $1 billion in 2006. It has manufacturing facilities in several countries and markets drugs in over 125 countries. The Indian pharmaceutical industry is poised for continued growth and increasing global market share in the coming years.
The document discusses the strategy of mergers and acquisitions (M&A) in the pharmaceutical industry, using Sun Pharmaceuticals' acquisition of Ranbaxy as a case study. It analyzes factors like declining revenues and increasing costs at Sun Pharma post-previous acquisitions that led to the Ranbaxy deal. The acquisition aimed to boost revenues, reduce costs through synergies, and expand operations in key markets like the US, India, and emerging markets. However, integration challenges, regulatory issues, and pricing pressures impacted profits initially. The document also evaluates Sun Pharma's competitors in India, customer segments, and opportunities in emerging pharmaceutical markets.
The document provides rankings and analysis of emerging growth stocks as of August 8, 2016. Eight stocks were added to the top 25 rankings due to strong recent financial performance or positive catalysts, including Gold Resource, Sodastream, Xencor, Carbonite, ANI Pharmaceuticals, MacroGenics, Huttig Building Products, and Parsley Energy. Nine stocks were removed from the rankings for reasons such as declining relative strength following poor earnings results or failure to meet minimum criteria. The rankings are generated weekly based on quantitative metrics to identify small, fast-growing companies.
Q4 & FY13 Post Earnings Conference Call April 26, 2013Biocon
The document is a transcript of Biocon's Q4 & FY13 earnings conference call. Key points include:
- Group sales grew 18% to Rs. 2,428 Crores, with strong growth in Research Services (36% to Rs. 557 Crores) and Healthcare (34% to Rs. 348 Crores).
- Group net profit grew over 50% to Rs. 509 Crores due to exceptional income from re-licensing generic insulin analogs to Mylan.
- Biocon extended its partnership with Mylan for generic insulin analogs, which significantly reduces Biocon's development costs and changes the profit sharing structure.
- The reading of Q4 numbers was impacted by exceptional income and
Ranbaxy has a choice between continuing as a manufacturer of generic drugs or developing proprietary medicines. It could potentially do both by continuing low-cost generic production while beginning to develop patented drugs in India, which has a suitable but improving infrastructure for innovation. Ranbaxy should focus on both developing and developed markets through mergers and strategic partnerships that give it access to foreign markets and resources, especially in geographically and culturally close countries like Russia and China.
The document provides an overview of the pharmaceutical industry in India and details regarding Sun Pharma and Lupin, two major Indian pharmaceutical companies. It discusses the regulatory environment, business models, financial performance, acquisitions, and growth strategies of Sun Pharma and Lupin. The summary highlights both companies' focus on expanding their global footprint and specialty product portfolios through acquisitions and internal research and development.
IPCA Laboratories Ltd is an Indian pharmaceutical company with a presence in domestic branded formulations, global branded/generic formulations, and APIs. The document recommends IPCA as an Alpha/Alpha+ stock and outlines factors that will drive its growth over the next 3 years, including: 1) 16-18% growth in domestic formulations business; 2) Increased sales from US generics business once issues at its Indore facility are resolved; 3) Scaling up its institutional anti-malaria business to Rs. 1000 crores. IPCA is well positioned in the anti-malarial space due to its API manufacturing and participation in programs like AMFm that aim to increase global access to affordable ACT treatments.
BP Equities_Granules India Ltd_Initiating Coverage_BUY_Trgt 179_27th Apr 2016nik18031991
This document provides an analysis on Granules India Ltd by BP Equities Pvt. Limited. The key points are:
1) Granules plans to expand API capacity which will propel revenue growth as capacity utilization is expected to remain high between 88-96% through FY19. Additional PFI capacity will support 17-18% revenue CAGR through FY19.
2) Acquisitions like Auctus and a JV with OmniChem will create long-term value by adding new molecules and supplying high-margin APIs to innovators.
3) Growing US finished dosage business through CMO contracts and new product launches will be a key future growth driver.
4
A one-pager on biotech company Acorda Therapeutics. Currently trading at 15.95, aiming at 20.23-27.24. I've stress-tested the company with a max downside of $9. So the risk-reward ratio is about 1:2.
The document discusses the Indian pharmaceutical industry and its advantages. It makes three key points:
1. The Indian pharmaceutical industry has grown significantly in recent decades and is now a major global supplier of generic drugs. It has over 700 member companies and exports over $12 billion worth of drugs annually.
2. India has many advantages that have fueled its pharmaceutical industry's growth, including a large skilled workforce, low production costs, and a large domestic market. It has received many regulatory approvals from agencies like the US FDA.
3. The growth of the Indian pharmaceutical industry has benefited global drug costs. As the largest producer and exporter of generic drugs, India has provided affordable treatment options and helped contain rising healthcare costs
Aarti Industries Ltd is an Indian chemicals company that manufactures products across various value chains including benzene, toluene, ethylene, and nitro toluene. It has 16 manufacturing units in India and customers in 60 countries. The document recommends buying shares of Aarti Industries, setting a target price of Rs 678, which represents a 31% upside from the current market price of Rs 518. It expects the company's revenues and profits to grow strongly over the next few years as capacity expansion allows it to capitalize on growth opportunities in specialty chemicals and pharmaceuticals.
Indian Pharma - An Overview by IDMA Secretary General Daara B PatelAnup Soans
This document discusses the Indian pharmaceutical industry and its growth opportunities. It notes that India is a major global supplier of affordable, high-quality medicines and has significant manufacturing capabilities and regulatory approvals. The Indian drug market is large and growing, fueled by increasing access, acceptance, and affordability of medicines in India. Indian companies are also major exporters and are collaborating with international partners. R&D investment is growing to develop new products and capture patent expiration opportunities.
Ipca Laboratories: To voluntarily stop supplies to US; Cut in estimatesIndiaNotes.com
IPCA has voluntarily stopped shipment from its API facility in Ratlam, India post the observations (form 483) listed by the US FDA in its recent inspection. IPCA received six observations, of which two relate to data integrity. This development will also have an impact on the formulations plants
Orchid Chemicals and Pharmaceuticals Ltd is an integrated pharmaceutical company focused on developing and manufacturing active pharmaceutical ingredients and finished drug formulations. It has manufacturing sites in India and regulatory approvals from agencies like the US FDA. While the company faced losses in 2013 due to plant shutdowns, its active pharmaceutical ingredients business has growth potential. The analyst recommends long-term investment in the stock given its patent portfolio, sales growth, and prospects in the global API market, despite current overvaluation.
The document provides an overview of the pharmaceutical industry in India. Some key points:
1. The Indian pharmaceutical industry is expected to grow to $100 billion by 2025 from $27.57 billion in 2016, expanding at a CAGR of 12.89% between 2015-2020.
2. India accounts for 20% of global exports in generics drugs, with exports standing at $16.84 billion in 2016-17 and projected to reach $20 billion by 2020.
3. The domestic generics drugs market was valued at $26.1 billion in 2016 and has significant potential for further growth.
The document provides an overview of the pharmaceutical industry in India. Some key points:
- The Indian pharmaceutical industry is expected to grow at a CAGR of 12.89% until 2020 to reach $55 billion in size.
- India accounts for 20% of global exports in generics drugs and exports were $16.8 billion in 2016-17, expected to reach $20 billion by 2020.
- The generics market in India stands at $26.1 billion in 2016 and has strong growth potential.
- Major segments of the pharmaceutical industry in India include active pharmaceutical ingredients, formulations, biosimilars, and contract research and manufacturing.
The document provides an overview of the Indian pharmaceutical industry. It notes that the industry is expected to grow to $100 billion by 2025, making India one of the top global markets. Currently valued at $27.57 billion, the industry is growing at 12.89% annually and exports over $16 billion worth of drugs globally each year. The generics market and biotech sector also have strong growth potential. The industry benefits from low production costs, a large skilled workforce, and government support for further development.
The document provides an analysis of the Indian pharmaceutical sector, including background information, current trends, and performance of major players. It discusses key growth drivers for the industry like rising incomes and improved healthcare infrastructure. Major players are achieving steady profits, though pricing pressures have kept margins mostly flat recently. Companies with higher earnings efficiencies like Sun Pharma and Divis Lab command higher valuation multiples, while Elder Pharma has the lowest multiples due to lower profitability. The analysis also examines relationships between valuation metrics like EV/Sales and EBITDA margins for different firms.
Lupin Pharmaceutical is an Indian pharmaceutical company with multiple branches located throughout India that specialize in different areas of production such as APIs, formulations, and herbal products. The company has experienced significant growth in recent years, with net sales increasing 38% from 2005 to 2006 due to successful product launches in the US market as well as strong domestic performance. Lupin also significantly increased investments in R&D and intellectual property.
Aarti Drugs Limited (ADL), incorporated in 1984 is part of Rs 3,000 crore Aarti Group of
Industries and is engaged in manufacturing and sale of Active pharmaceutical ingredients
(APIs), advanced intermediates and specialty chemicals. ADL manufactures drugs in
therapeutic segments such as anti-arthritis, anti-fungal, antibiotics, anti-diabetic, sedatives,
anti-depressant, anti-diarrhea and anti-inflammatory.
In Aarti Drugs we get a bulk drugs manufacturer with steady growth across the years,
continuously improving performance on various financial parameters, good dividend
yield of more than 5% and low valuations of 5 times earnings and EV/EBIT of 5.28.
Besides, what instills further confidence in the stock is the fact that promoters of the
company have been continuously increasing their stake with regular purchases from open
market. Two years back promoters had 54.83% stake in the company and the same now
stands increased to 59.65%.
UPL Limited - Natverlal Research - Jan-16Gaurav Singh
UPL Limited is a leading global agrochemical company with a market capitalization of $2.8 billion. It has a diversified product portfolio across fungicides, insecticides, herbicides and others. The company is well positioned for steady growth due to increasing global demand for food production, low pesticide usage in India providing room for growth, and its geographical and product diversification. Vertical integration enables it to maintain margins as a low cost producer.
The document provides an overview of the pharmaceutical industry in India. Some key points:
- The Indian pharmaceutical industry is expected to grow at a CAGR of 12.89% until 2020 to reach $55 billion in size. India accounts for 20% of global generic drug exports.
- Major segments of the industry include active pharmaceutical ingredients, formulations, biosimilars, and contract research and manufacturing. Generics account for 70% of the domestic market.
- Leading therapeutic segments are anti-infectives, cardiovascular, and gastro-intestinal drugs. The biotechnology industry in India is also growing rapidly and is projected to reach $100 billion by 2025.
- Pharmaceutical exports from
This document provides an investment analysis recommendation on Cipla Limited from IIFL Securities. It recommends buying Cipla shares with a target price of ₹1,127, representing an upside of 20% from the current price. Key points include Cipla's strong growth in the US market driven by new product launches, focus on outperforming market growth in India and South Africa, plans to enter new markets like China and Brazil, and improved profitability and return on capital employed. The analysis also notes risks like potential rejection of drug applications.
Discover the benefits of homeopathic medicine for irregular periods with our guide on 5 common remedies. Learn how these natural treatments can help regulate menstrual cycles and improve overall menstrual health.
Visit Us: https://drdeepikashomeopathy.com/service/irregular-periods-treatment/
Nutritional deficiency Disorder are problems in india.
It is very important to learn about Indian child's nutritional parameters as well the Disease related to alteration in their Nutrition.
Computer in pharmaceutical research and development-Mpharm(Pharmaceutics)MuskanShingari
Statistics- Statistics is the science of collecting, organizing, presenting, analyzing and interpreting numerical data to assist in making more effective decisions.
A statistics is a measure which is used to estimate the population parameter
Parameters-It is used to describe the properties of an entire population.
Examples-Measures of central tendency Dispersion, Variance, Standard Deviation (SD), Absolute Error, Mean Absolute Error (MAE), Eigen Value
Pictorial and detailed description of patellar instability with sign and symptoms and how to diagnose , what investigations you should go with and how to approach with treatment options . I have presented this slide in my 2nd year junior residency in orthopedics at LLRM medical college Meerut and got good reviews for it
After getting it read you will definitely understand the topic.
Osvaldo Bernardo Muchanga-GASTROINTESTINAL INFECTIONS AND GASTRITIS-2024.pdfOsvaldo Bernardo Muchanga
GASTROINTESTINAL INFECTIONS AND GASTRITIS
Osvaldo Bernardo Muchanga
Gastrointestinal Infections
GASTROINTESTINAL INFECTIONS result from the ingestion of pathogens that cause infections at the level of this tract, generally being transmitted by food, water and hands contaminated by microorganisms such as E. coli, Salmonella, Shigella, Vibrio cholerae, Campylobacter, Staphylococcus, Rotavirus among others that are generally contained in feces, thus configuring a FECAL-ORAL type of transmission.
Among the factors that lead to the occurrence of gastrointestinal infections are the hygienic and sanitary deficiencies that characterize our markets and other places where raw or cooked food is sold, poor environmental sanitation in communities, deficiencies in water treatment (or in the process of its plumbing), risky hygienic-sanitary habits (not washing hands after major and/or minor needs), among others.
These are generally consequences (signs and symptoms) resulting from gastrointestinal infections: diarrhea, vomiting, fever and malaise, among others.
The treatment consists of replacing lost liquids and electrolytes (drinking drinking water and other recommended liquids, including consumption of juicy fruits such as papayas, apples, pears, among others that contain water in their composition).
To prevent this, it is necessary to promote health education, improve the hygienic-sanitary conditions of markets and communities in general as a way of promoting, preserving and prolonging PUBLIC HEALTH.
Gastritis and Gastric Health
Gastric Health is one of the most relevant concerns in human health, with gastrointestinal infections being among the main illnesses that affect humans.
Among gastric problems, we have GASTRITIS AND GASTRIC ULCERS as the main public health problems. Gastritis and gastric ulcers normally result from inflammation and corrosion of the walls of the stomach (gastric mucosa) and are generally associated (caused) by the bacterium Helicobacter pylor, which, according to the literature, this bacterium settles on these walls (of the stomach) and starts to release urease that ends up altering the normal pH of the stomach (acid), which leads to inflammation and corrosion of the mucous membranes and consequent gastritis or ulcers, respectively.
In addition to bacterial infections, gastritis and gastric ulcers are associated with several factors, with emphasis on prolonged fasting, chemical substances including drugs, alcohol, foods with strong seasonings including chilli, which ends up causing inflammation of the stomach walls and/or corrosion. of the same, resulting in the appearance of wounds and consequent gastritis or ulcers, respectively.
Among patients with gastritis and/or ulcers, one of the dilemmas is associated with the foods to consume in order to minimize the sensation of pain and discomfort.
Giloy in Ayurveda - Classical Categorization and SynonymsPlanet Ayurveda
Giloy, also known as Guduchi or Amrita in classical Ayurvedic texts, is a revered herb renowned for its myriad health benefits. It is categorized as a Rasayana, meaning it has rejuvenating properties that enhance vitality and longevity. Giloy is celebrated for its ability to boost the immune system, detoxify the body, and promote overall wellness. Its anti-inflammatory, antipyretic, and antioxidant properties make it a staple in managing conditions like fever, diabetes, and stress. The versatility and efficacy of Giloy in supporting health naturally highlight its importance in Ayurveda. At Planet Ayurveda, we provide a comprehensive range of health services and 100% herbal supplements that harness the power of natural ingredients like Giloy. Our products are globally available and affordable, ensuring that everyone can benefit from the ancient wisdom of Ayurveda. If you or your loved ones are dealing with health issues, contact Planet Ayurveda at 01725214040 to book an online video consultation with our professional doctors. Let us help you achieve optimal health and wellness naturally.
As the world population is aging, Health tourism has become vitally important and will be increased day by day. Because
of the availability of quality health services and more favorable prices as well as to shorten the waiting list for medical
services regionally and internationally. There are some aspects of managing and doing marketing activities in order for
medical tourism to be feasible, in a region called as clustering in a region with main stakeholders groups includes Health
providers, Tourism cluster, etc. There are some related and affecting factors to be considered for the feasibility of medical
tourism within this study such as competitiveness, clustering, Entrepreneurship, SMEs. One of the growth phenomenon
is Health tourism in the city of Izmir and Turkey. The model of five competitive forces of Porter and The Diamond model
that is an economical model that shows the four main factors that affect the competitiveness of a nation and its industries
in this study. The short literature of medical tourism and regional clustering have been mentioned.
Nano-gold for Cancer Therapy chemistry investigatory projectSIVAVINAYAKPK
chemistry investigatory project
The development of nanogold-based cancer therapy could revolutionize oncology by providing a more targeted, less invasive treatment option. This project contributes to the growing body of research aimed at harnessing nanotechnology for medical applications, paving the way for future clinical trials and potential commercial applications.
Cancer remains one of the leading causes of death worldwide, prompting the need for innovative treatment methods. Nanotechnology offers promising new approaches, including the use of gold nanoparticles (nanogold) for targeted cancer therapy. Nanogold particles possess unique physical and chemical properties that make them suitable for drug delivery, imaging, and photothermal therapy.
This presentation gives information on the pharmacology of Prostaglandins, Thromboxanes and Leukotrienes i.e. Eicosanoids. Eicosanoids are signaling molecules derived from polyunsaturated fatty acids like arachidonic acid. They are involved in complex control over inflammation, immunity, and the central nervous system. Eicosanoids are synthesized through the enzymatic oxidation of fatty acids by cyclooxygenase and lipoxygenase enzymes. They have short half-lives and act locally through autocrine and paracrine signaling.
Breast cancer: Post menopausal endocrine therapyDr. Sumit KUMAR
Breast cancer in postmenopausal women with hormone receptor-positive (HR+) status is a common and complex condition that necessitates a multifaceted approach to management. HR+ breast cancer means that the cancer cells grow in response to hormones such as estrogen and progesterone. This subtype is prevalent among postmenopausal women and typically exhibits a more indolent course compared to other forms of breast cancer, which allows for a variety of treatment options.
Diagnosis and Staging
The diagnosis of HR+ breast cancer begins with clinical evaluation, imaging, and biopsy. Imaging modalities such as mammography, ultrasound, and MRI help in assessing the extent of the disease. Histopathological examination and immunohistochemical staining of the biopsy sample confirm the diagnosis and hormone receptor status by identifying the presence of estrogen receptors (ER) and progesterone receptors (PR) on the tumor cells.
Staging involves determining the size of the tumor (T), the involvement of regional lymph nodes (N), and the presence of distant metastasis (M). The American Joint Committee on Cancer (AJCC) staging system is commonly used. Accurate staging is critical as it guides treatment decisions.
Treatment Options
Endocrine Therapy
Endocrine therapy is the cornerstone of treatment for HR+ breast cancer in postmenopausal women. The primary goal is to reduce the levels of estrogen or block its effects on cancer cells. Commonly used agents include:
Selective Estrogen Receptor Modulators (SERMs): Tamoxifen is a SERM that binds to estrogen receptors, blocking estrogen from stimulating breast cancer cells. It is effective but may have side effects such as increased risk of endometrial cancer and thromboembolic events.
Aromatase Inhibitors (AIs): These drugs, including anastrozole, letrozole, and exemestane, lower estrogen levels by inhibiting the aromatase enzyme, which converts androgens to estrogen in peripheral tissues. AIs are generally preferred in postmenopausal women due to their efficacy and safety profile compared to tamoxifen.
Selective Estrogen Receptor Downregulators (SERDs): Fulvestrant is a SERD that degrades estrogen receptors and is used in cases where resistance to other endocrine therapies develops.
Combination Therapies
Combining endocrine therapy with other treatments enhances efficacy. Examples include:
Endocrine Therapy with CDK4/6 Inhibitors: Palbociclib, ribociclib, and abemaciclib are CDK4/6 inhibitors that, when combined with endocrine therapy, significantly improve progression-free survival in advanced HR+ breast cancer.
Endocrine Therapy with mTOR Inhibitors: Everolimus, an mTOR inhibitor, can be added to endocrine therapy for patients who have developed resistance to aromatase inhibitors.
Chemotherapy
Chemotherapy is generally reserved for patients with high-risk features, such as large tumor size, high-grade histology, or extensive lymph node involvement. Regimens often include anthracyclines and taxanes.
Storyboard on Skin- Innovative Learning (M-pharm) 2nd sem. (Cosmetics)MuskanShingari
Skin is the largest organ of the human body, serving crucial functions that include protection, sensation, regulation, and synthesis. Structurally, it consists of three main layers: the epidermis, dermis, and hypodermis (subcutaneous layer).
1. **Epidermis**: The outermost layer primarily composed of epithelial cells called keratinocytes. It provides a protective barrier against environmental factors, pathogens, and UV radiation.
2. **Dermis**: Located beneath the epidermis, the dermis contains connective tissue, blood vessels, hair follicles, and sweat glands. It plays a vital role in supporting and nourishing the epidermis, regulating body temperature, and housing sensory receptors for touch, pressure, temperature, and pain.
3. **Hypodermis**: Also known as the subcutaneous layer, it consists of fat and connective tissue that anchors the skin to underlying structures like muscles and bones. It provides insulation, cushioning, and energy storage.
Skin performs essential functions such as regulating body temperature through sweat production and blood flow control, synthesizing vitamin D when exposed to sunlight, and serving as a sensory interface with the external environment.
Maintaining skin health is crucial for overall well-being, involving proper hygiene, hydration, protection from sun exposure, and avoiding harmful substances. Skin conditions and diseases range from minor irritations to chronic disorders, emphasizing the importance of regular care and medical attention when needed.
STUDIES IN SUPPORT OF SPECIAL POPULATIONS: GERIATRICS E7shruti jagirdar
Unit 4: MRA 103T Regulatory affairs
This guideline is directed principally toward new Molecular Entities that are
likely to have significant use in the elderly, either because the disease intended
to be treated is characteristically a disease of aging ( e.g., Alzheimer's disease) or
because the population to be treated is known to include substantial numbers of
geriatric patients (e.g., hypertension).
Storyboard on Acne-Innovative Learning-M. pharm. (2nd sem.) CosmeticsMuskanShingari
Acne is a common skin condition that occurs when hair follicles become clogged with oil and dead skin cells. It typically manifests as pimples, blackheads, or whiteheads, often on the face, chest, shoulders, or back. Acne can range from mild to severe and may cause emotional distress and scarring in some cases.
**Causes:**
1. **Excess Oil Production:** Hormonal changes during adolescence or certain times in adulthood can increase sebum (oil) production, leading to clogged pores.
2. **Clogged Pores:** When dead skin cells and oil block hair follicles, bacteria (usually Propionibacterium acnes) can thrive, causing inflammation and acne lesions.
3. **Hormonal Factors:** Fluctuations in hormone levels, such as during puberty, menstrual cycles, pregnancy, or certain medical conditions, can contribute to acne.
4. **Genetics:** A family history of acne can increase the likelihood of developing the condition.
**Types of Acne:**
- **Whiteheads:** Closed plugged pores.
- **Blackheads:** Open plugged pores with a dark surface.
- **Papules:** Small red, tender bumps.
- **Pustules:** Pimples with pus at their tips.
- **Nodules:** Large, solid, painful lumps beneath the surface.
- **Cysts:** Painful, pus-filled lumps beneath the surface that can cause scarring.
**Treatment:**
Treatment depends on the severity and type of acne but may include:
- **Topical Treatments:** Such as benzoyl peroxide, salicylic acid, or retinoids to reduce bacteria and unclog pores.
- **Oral Medications:** Antibiotics or oral contraceptives for hormonal acne.
- **Procedures:** Such as chemical peels, extraction of comedones, or light therapy for more severe cases.
**Prevention and Management:**
- **Cleanse:** Regularly wash skin with a gentle cleanser.
- **Moisturize:** Use non-comedogenic moisturizers to keep skin hydrated without clogging pores.
- **Avoid Irritants:** Such as harsh cosmetics or excessive scrubbing.
- **Sun Protection:** Use sunscreen to prevent exacerbation of acne scars and inflammation.
Acne treatment can take time, and consistency in skincare routines and treatments is crucial. Consulting a dermatologist can help tailor a treatment plan that suits individual needs and reduces the risk of scarring or long-term skin damage.
1. COMPANY UPDATE 24 JUN 2019
Solara Active Pharma Sciences
NOT RATED
Pure API play
In light of environmental issues in China, the API market
place is likely to present an enormous opportunity for
established Indian API manufacturers. The global API
market is close to US$ 160bn with China having a 30%+
market share, while India is at 8-10%. Solara is one of
the leading API manufacturers in India having the
capability to benefit from this opportunity due to a large
API portfolio of 50+ molecules.
After de-merging from its parent entities, Strides and
Sequent, the company has outperformed its FY19
guidance of 20% top line and EBITDA growth by a big
margin. FY19 performance has been stellar with 35/59%
revenue/EBITDA growth (proforma). We expect Solara
to maintain ~16/21% revenue/EBITDA CAGR over FY19-
21E. Recently, Solara announced capital infusion of Rs
4.6bn to build engines for growth beyond FY21E. In our
view, it is an ideal stock to invest in a pure-play API story
emerging in India. At CMP, the stock is trading at
16.4/10.2x FY20/21E EPS, a ~30% discount to the sector-
avg. We assign a fair value of Rs 650 (15x FY21E EPS).
Robust API portfolio: Solara has 50+ molecules in its
API portfolio, comprising of high volume APIs like
Ibuprofen, Gabapentin, and Ranitidine; niche
products like Patinomar, and Oseltamivir; and
products with CGT potential like Zileuton, Mesna, and
Colestipol. The company is one of the largest
suppliers of Ibuprofen API globally and is also growing
its presence in Ranitidine and Gabapentin molecules.
The recent growth in revenues is driven by improved
traction in Ibuprofen as well as new product
introductions like Patinomar. It aims to file 10+ DMFs
every year with new products ramping up to ~15% of
sales by FY21 (low single digit now).
Large API capacities to support growth: Solara has 4
large API facilities in India. The recently added
Ambernath plant is at 30% utilization and its scale-up
could drive both revenue and profitability for Solara.
The company is also setting up a greenfield unit at
Vizag. The phase I of this unit will cost Rs 2.5bn over
FY19-20E. The unit will be commercialized by FY21E.
Fund-raise to build more capabilities: In Feb-19,
Solara announced fundraising of Rs 4.6bn in equity
through warrants issued to promoters and a private
investor, TPG group. The promoter will invest Rs
2.6bn at Rs 400/sh while TPG will invest Rs 2bn at Rs
500/sh. The funds are likely to be used to reduce debt
by Rs 1.5-2bn and support capacity addition
(organically or inorganically).
Improving fundamentals: With debt reduction of Rs
2bn, we expect a 40% decrease in interest cost by
FY21E. This, coupled with a 16/21% revenue/EBITDA
CAGR over FY19-21E will enable PAT to jump >2x.
Adjusting for the Rs 3.6bn goodwill, RoIC will be in
high-teens (~17%) by FY21E. A focus on lucrative APIs
and CRAMS is likely to improve business
fundamentals further, beyond FY21E.
Financial Summary
(Rs mn) FY18 FY19P FY20E FY21E
Net Sales 5,210 13,867 16,079 18,559
EBITDA 625 2,208 2,633 3,207
APAT 60 671 946 1,518
Adj. EPS (Rs) 2.4 26.0 26.9 43.1
P/E (x) 182.6 17.0 16.4 10.2
Adj. RoE (%) 2.9 13.4 10.9 12.6
Adj. RoIC (%) 6.3 14.1 15.6 16.8
Source: Company, HDFC sec Inst Research
INDUSTRY PHARMA
CMP (as on 21 Jun 2019) Rs 442
Fair Value Rs 650
Nifty 11,724
Sensex 39,194
KEY STOCK DATA
Bloomberg SOLARA IN
No. of Shares (mn) 26
MCap (Rs bn) / ($ mn) 11/164
6m avg traded value (Rs mn) 33
STOCK PERFORMANCE (%)
52 Week high / low Rs 492/134
3M 6M 12M
Absolute (%) (0.9) 45.2 -
Relative (%) (3.0) 35.5 -
SHAREHOLDING PATTERN (%)
Dec-18 Mar-19
Promoters 37.90 45.07
FIs & Local MFs 9.08 2.58
FPIs 16.24 17.36
Public & Others 36.78 34.99
Pledged Shares* 3.05 2.78
Source : BSE, *% of total
Amey Chalke
amey.chalke@hdfcsec.com
+91-22-6171-7321
Eshan Desai
eshan.desai@hdfcsec.com
+91-22-6639-2476
HDFC securities Institutional Research is also available on Bloomberg HSLB <GO>& Thomson Reuters
2. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
API market: Sizeable, and growing
Globally, the API market is close to ~US$ 160bn in
size, 60% of this is used for captive API consumption
and 40% is outsourced to third-party manufacturers.
China has 30%+ market share while India is at only
8% in terms of value. This market is growing at 6%
CAGR and is likely to reach ~US$ 260bn by 2026.
The key Indian players in API production are
Aurobindo, Dr Reddy’s, Lupin and Alembic. There are
several API focused companies which operate as
third-party manufacturers including Divi’s Labs,
Jubilant Life, MSN, Laurus Labs, SMS Pharma, Solara,
IOL, Granules India, and Neuland Labs.
There are two key opportunities in the API space for
Indian players: (1) Shortages led by China due to
plant shutdowns or raw material unavailability, and
(2) niche complex molecules which are low in
volumes and could prove to be expensive for generic
formulation players to invest in captive API units as
complex approvals are difficult to come by.
Global API market (US$ bn) – 5-6% CAGR
Source: Company, HDFC sec Inst Research
One of the largest API portfolios: Solara has
demonstrated its cost-efficient API manufacturing
capabilities in high volume molecules like Ibuprofen,
Gabapentin, Praziquantel, and Ranitidine. It has also
successfully commercialized complex molecules like
Oseltamivir and Colesevelam. In total, the company
has 50+ molecules in its portfolio and it is likely to file
10 new products every year. It is one of the largest
portfolios among Indian cos.
We have analyzed Solara’s DMF filings and
categorized them in four segments – (1) High volume
APIs, (2) Low volume APIs, (3) APIs with patent
protection in the US, and (4) APIs with CGT potential.
The findings suggest that, apart from current APIs
which generate significant revenues for Solara
(Ibuprofen, Gabapentin, Praziquantel, Ranitidine,
Venlafaxine, and Oseltamivir), there are several APIs
where Solara could scale up its existing capabilities.
DMFs Filed By Major Indian API Companies
Source: US FDA, HDFC sec Inst Research
162
257
2017 2026
Global API market (US$ bn)
Of the US$ 160bn global API
market, 40% is outsourced to
third-party manufacturers
China is the leading API
manufacturer with 30%+
market share. India is at 8-
10% share
The recent issues related to
environmental concerns in
China have opened up the API
market further for Indian
players
Solara is best-placed to gain
from this opportunity, given
its cost-efficient capabilities,
expanded capacities, strong
customer relations, and
healthy DMF filing track
record
102
79
63
51
45
35 33 32 28
17
5
0
20
40
60
80
100
120
Jubilant
Solara
Neuland
Divi's
Laurus
ShilpaMedicare
GranulesIndia
SMS
Hikal
AartiDrugs
IOL
DMFs FiledTill Mar-19 (#)
Page | 2
3. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
#1: High Volume APIs
Ibuprofen (pain): A nonsteroidal anti-inflammatory
(NSAID) indicated for relieving pain caused by various
conditions like headache, dental pain, muscle aches, and
arthritis. It is also used during fever, common cold, or flu.
Solara is currently one of the largest suppliers of
Ibuprofen API with more than 5,000MT capacity and
has long-term contracts with most of its clients. The
biggest clients include one of the innovators and
Strides.
Since Jun-18, Ibuprofen API prices have surged from
~US$ 10 to US$ 17-18 per kg on the back of global
shortage in the product. The shortage was driven by
the shutdown of BASF’s key plant in the US, which is
the world’s largest Ibuprofen supplier.
However, Solara abstained from taking sharp price
hikes and supplied Ibuprofen API to its long-term
customers at US$ 12-14 per kg. While this restricted
potential revenue surge in the short-term, Solara
retained long-term customers.
Historically, the Ibuprofen formulation market at US$
1.1bn has grown at a CAGR of ~3% over 2014-18. We
believe the market will continue to grow at low single
digits over the next few years.
Additionally, Solara intends to supply various
derivatives of Ibuprofen which will differentiate its
product offerings as well as improve business mix as
these derivatives would be higher-margin compared
to the plain-vanilla APIs.
Other high-volume products: Solara is a key global
supplier for several high-volume products, most of which
are indicated as the first-line treatment for their
symptoms.
Ranitidine (gastro): An H2 blocker, it works by
reducing the amount of acid in the stomach,
indicated to prevent and treat heartburn and other
symptoms caused by acid indigestion. The global
formulations market for Ranitidine at US$ 2.9bn has
grown at ~9% CAGR over 2014-18. We believe the
market will continue growing at high single-digits
over the coming years. The third party API market is
between Rs 5 to 10bn in size. The leading Indian
players include Jubilant Life, while Strides is expected
to ramp up sales of Ranitidine in multiple dosages
and forms. This will lead to healthy revenue growth
for Solara, which is Strides’ largest API supplier.
Gabapentin (neuro/CNS): An anticonvulsant or
antiepileptic drug indicated with other medications
for prevention and control of seizures, it is also used
to relieve nerve pain following shingles. Formulation
market has grown at ~8% CAGR to US$ 10.1bn over
the last 4 years. Expect similar growth for the API
market. The global third party demand for
Gabapentin APIs is higher than 10,000MTs. Divi’s is
one of the largest suppliers of Gabapentin APIs and is
likely to have a 40% market share in regulated
markets. We believe Solara has a lot of scope to
expand its presence.
Praziquantel (Anti-worm): It is a prescription drug
used as anti-worm medication. It prevents newly
hatched insect larvae (worms) from growing or
multiplying in the body. Praziquantel is used to treat
infections caused by Schistosoma worms, which enter
the body through skin that has come into contact
with contaminated water. It is also one of the high
volume APIs with more than 1,000MT third-party
demand. We believe Solara has a dedicated block for
this molecule as well and generates more than Rs 2bn
revenues in a year.
Currently, Solara is one of the
largest suppliers of Ibuprofen
API globally. It has maintained
long-term contracts with
modest price hikes despite the
sharp surge in API prices for
Ibuprofen following the
shutdown of BASF’s plant
Apart from Ibuprofen, Solara
is a key supplier of several
high-volume APIs which are
indicated as the first-line
treatment
Page | 3
4. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
High Volume APIs (More than 1,000MT global requirement)
Molecule Brand Name Price (US$/kg) Market size (Rs bn) Comment
Ibuprofen 13 >10 Solara is one of the biggest suppliers
Gabapentin 42 >10 Potential to expand presence
Acyclovir Sodium Zovirax 60 >10 Chinese suppliers dominate this market.
Ranitidine Hydrochloride Zantac 30 5-10 Potential to expand presence
Levetiracetam Keppra 90 5-10 Potential to expand presence
Carisoprodol Usp Soma 33 1-5 Value-wise small molecule
Mefenamic Acid Ponstel 11 <1 Value-wise small molecule
Albendazole Albenza 32 1-5 Value-wise small molecule
Tenofovir Disoproxil Fumarate Viread 206 >10 Laurus is one of the biggest suppliers (40%)
Pantoprazole Sodium Protonix 200 >10 Potential to expand presence
Naproxen Sodium 40 >10 Divi’s is one of the largest suppliers (60%)
Zidovudine Retrovir 200 >10 Chinese players dominate the market
Source: US FDA, HDFC sec Inst Research
#2: Low Volume APIs
Niche APIs: Solara has filed DMFs for multiple niche APIs
which have either recently genericized or are yet to go
generic. Some of the key APIs in this category include
Sevelamer (Renvela), Oseltamivir (Tamiflu), and
Colesevelam (Welchol). A higher contribution of these
APIs will lead to improved product mix and expand
margins.
Oseltamivir Phosphate: It is an antiviral medication
used to treat and prevent influenza A and influenza B
(flu). Many medical organizations recommend it to
people who have complications or are at a high risk
of complications within 48 hours of first symptoms of
infection. This product became generic in the US
three years back and has created an opportunity for
third-party manufacturers like Solara who have tie-
ups with several generic players. We believe it is also
a sizable product for Solara in terms of revenues.
Ursodeoxycholic acid: Also known as ursodiol, it is
one of the secondary bile acids which are metabolic
byproducts of intestinal bacteria. It is used to reduce
gallstone formation and for the treatment of primary
biliary cholangitis. We believe the demand for this
API is more than 500MT and is being sold at US$ 375-
380/kg. Some of the Chinese suppliers are likely to be
dominating this market.
Other high-value, niche APIs in Solara’s portfolio
include Cinacalcet, Aprepitant, and Pitavastatin
Calcium. We believe in many of these API, Solara has
a large scope to scale up over the next few years as
more genericization is expected to takes place in
regulated markets.
Among high-volume APIs,
Solara has the potential to
expand its presence further in
key molecules like
Gabapentin, Ranitidine,
Levetiracetam, and
Pantoprazole
Solara has several lucrative
niche products in its portfolio
which are lower volume and
higher in margins. These
include Oseltamivir,
Ursodeoxycholic acid,
Cinacalcet, Aprepitant, and
Pitavastatin
Page | 4
5. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
Low Volume APIs (Volume requirement <1,000MT)
Molecule Brand Name Price (US$/kg) Market size (Rs bn) Comment
Ketoprofen Usp Ketoprofen 78 1-5 Potential to expand presence
Celecoxib Usp Celebrex 80 5-10 Potential to expand presence
Venlafaxine Hydrochloride Pristiq 100 5-10 Solara has a significant presence
Ursodeoxycholic Acid Actigall 377 5-10 Chinese players dominate the market
Loratadine Claritin 370 5-10 Not a growing molecule
Labetalol Hydrochloride Trandate 140 1-5
Nizatidine Axid 173 1-5
Sevelamer Carbonate Renvela 127 1-5 Solara has a significant presence
Colesevelam Hydrochloride Welchol 171 1-5 Solara has a significant presence
Indomethacin Sodium Indocin 83 Value-wise small molecule
Chlorthalidone Usp No brand present 190 <1
Oseltamivir Phosphate Tamiflu 2000 10> Solara has a significant presence
Meprobamate 180 <1
Olanzapine Zyprexa 130 <1
Flecainide Acetate Tambocor 350 <1 Low volume molecule
Cetirizine Dihydrochloride 280 <1 Not many Indian players present
Ertapenem Sodium Invanz 458 <1 Low volume molecule
Clomipramine Hcl Usp Anafranil 350 <1 Low volume molecule
Felbamate Felbatol 410 <1 Low volume molecule
Tioconazole Vagistat-1 440 <1 Low volume molecule
Chlorpromazine Hydrochloride Thorazine 70 Value-wise small molecule
Quinapril Hydrochloride Accupril 600 <1 Low volume molecule
Cinacalcet Hydrochloride Sensipar 2700 >1 Low volume molecule
Flucytosine Usp Ancobon 1500 >1 Low volume molecule
Aprepitant Emend 20000 5-10 Good opportunity to scale up
Midazolam Seizalam 3000 >1 Low volume molecule
Succinylcholine Chloride Quelicin 800 <1 Low volume molecule
Pitavastatin Calcium Livalo 20000 1-5 Solara has presence
Methoxsalen Usp Oxalararen ultra 850 <1 Low volume molecule
Imiquimod Zyclara 3000 >1 Low volume molecule
Ethacrynic Acid Usp Edecrin 4000 >1 Low volume molecule
Etomidate Amidate 22000 >1 Low volume molecule
Lurasidone Hydrochloride Latuda 2173 >1 Low volume molecule
Source: US FDA, HDFC sec Inst Research
Solara has the potential to
expand its presence in key
niche APIs like Aprepitant,
Ketoprofen, Celecoxib, and
Pitavastatin
It has already established a
significant presence in
molecules like Venlafaxine,
Sevelamer, Colesevelam, and
Oseltamivir
Page | 5
6. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
#3: Patent-protected molecules
We have found close to 10 molecules in Solara’s
portfolio which are likely to see patent expiration
over the next 4-5 years in the US market. We believe
some of these molecules are likely to be key drivers
of new molecule growth for Solara over the next two
years. We expect generic penetration in Patiromer
Sorbitex Calcium, Pregabalin, and Posaconazole by
FY21-22E. The management has also said that they
have tied-up with formulation players for day-1
launches in some of the products, which will have
some profit-sharing agreement.
#4: Molecules with CGT potential
There are at least four molecules in Solara’s portfolio
which are listed on the CGT list of USFDA. The patents
have expired for all these four molecules but there
are less than 2 generic players in the market. In terms
of value and volume, these molecules are really small
and could not earn much for Solara unless it ties with
formulations players for sharing the profits.
Patent Protected Molecules
Molecule Brand Name Patent expiry
Patiromer Sorbitex Calcium Veltassa 2020-2025
Efinaconazole Jublia 2030
Posaconazole Noxafil 2019-July
Dabigatran Etexilate Mesylate Pradaxa 2021-2027
Mirabegron Myrbetriq
Colchicine Colcrys 2023
Rifaximin Xifaxan 2024
Pregabalin Lyrica 2019-June
Milnacipran Hydrochloride Savella 2021
Source: US FDA, HDFC sec Inst Research
Molecules with CGT potential
Molecule Brand Name
Generic
(Yes/No)
Players
Patent
expiry
Colestipol Colestid Yes 1 Yes
Zileuton Zyflo Yes 1 Yes
Mesna Mesnex No Yes
Cycloserine Seromycin No Yes
Source: US FDA, HDFC sec Inst Research
Of the molecules filed by
Solara and currently under
patent protection, we believe
Posaconazole, Patiromer
Sorbitex, and Pregabalin can
face generic penetration by
FY21-22E
Solara’s portfolio has 4 CGT
molecules which have less
than 2 generic players in the
market
Page | 6
7. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
Manufacturing and R&D landscape
Large API capacities:
There were a total of 4 large-scale API capacities with
Solara post its de-merger till FY18. It added the
Ambernath plant from Strides in FY19. This plant was
owned by Perrigo previously and is operating at only
30% utilization levels. The other plants are largely
operating at optimal utilization. 4 out of the 5 plants
are approved by USFDA. The company is expanding
its existing capacities by spending Rs 1bn a year and
has also committed to investing Rs 2.5bn in setting up
a greenfield unit at Vizag by the end of FY20. It is
likely to get commercialized by FY21E.
We believe Solara has enough capacities to maintain
20% revenue growth over the next two years and
Vizag could help it to maintain the momentum
beyond FY21E.
Manufacturing and R&D landscape:
Acquisition
mode
Location Function Approvals
Sequent
Mangaluru,
Karnataka
API
TGA, WHO,
USFDA
Sequent
Mysuru,
Karnataka
API cGMP
Strides Puducherry
API
(Ibuprofen)
USFDA, PMDA,
EU, cGMP
Strides
Cuddalore, Tamil
Nadu
API
USFDA, PMDA,
EU, cGMP
Strides Ambernath API
USFDA, PMDA,
EU, cGMP
Greenfield Atchutapuram API
Sovinzen
Bangalore,
Karnataka
R&D
Strides
Chennai, Tamil
Nadu
R&D
CRAMS: Solara has two dedicated R&D facilities to
support its CRAMS business, one in Bangalore and the
other in Chennai.
The company aims to gain traction in the CRAMS
business by FY21E and is also open to making
lucrative acquisitions for this segment to achieve a
ramp up sooner. Its key focus area for the CRAMS
business lies in the regulated markets.
Solara will also increase its R&D spend on growing its
CRAMS business. The R&D spending has increased
from Rs 103mn in FY18 to Rs 448mn in FY19P. We
expect the company to maintain R&D to sales at
~3.5% over the next few years.
Multi-purpose API And Intermediate Facility At
Ambernath
Source: Company, HDFC sec Inst Research
Solara acquired 4 large-scale
API facilities, two each from
Sequent and Strides, post the
de-merger in FY18.
Subsequently, it also acquired
Strides’ Ambernath facility in
FY19
At present, 4 out of 5 plants
are operating at optimal
levels while the Ambernath
facility is at 30% utilization
rate. Solara has the required
capacity to support growth till
FY21E and is building a
greenfield facility to drive
revenues beyond FY21E
For its CRAMS business, the
company is open to inorganic
opportunities to scale up in
regulated markets. We believe
this segment will start
contributing meaningfully to
revenues from FY22E
Page | 7
8. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
Fund-raise to build more capabilities
In Feb-19, Solara announced that the company will raise
an aggregate of Rs 4.6bn over a period of 18 months from
the Promoter’s group and TPG Ltd (a PE investor).
Following are the terms of the fundraising:
The Promoter’s group will infuse Rs 2.6bn for 6.5mn
warrants at Rs 400/sh.
TPG will infuse Rs 2bn for 4.0mn warrants at Rs
500/sh.
The PE investor will have no special rights. However,
it will receive one seat at the Board of Solara.
Application of the funds:
Setting up of a large-scale Greenfield manufacturing
facility in Atchutapuram, Vizag (no additional
leverage required).
Setting up backward integration for key APIs.
Certain inorganic opportunities, likely within the
CRAMS business.
Reduction in existing debt (we believe ~Rs 2bn will be
used to pay-off existing debt).
Implications of the fundraise
On the Balance Sheet: Solara will be using ~Rs 2bn to
repay existing debt, which will turn Solara into a net-
cash company by FY20E.
On the Income Statement: Reduction in debt will lead
to finance cost savings and improve EPS by Rs 8.2
FY21E (20% of our EPS estimate of Rs 41.8).
On shareholding: Promoter shareholding will increase
from 38% (Dec-18) to 45% post completion of the
fundraise.
Progress so far:
As of May-19, Solara has completed the allotment of
1.1mn shares on conversion of an equivalent number
of warrants to the promoter’s group. The preliminary
consideration received thus far is Rs 1.5bn.
Implications Of The Fundraise
Before After
Net Debt (Rs bn) 3.63 (0.24)
Total no of shares (mn) 24.7 35.2
Shares held by Promoter (mn) 9.4 15.9
Promoter holding (%) 37.90 45.07
Source: Company, HDFC sec Inst Research
In Feb-19, Solara announced
capital infusion of Rs 4.6bn by
way of issuing 10.5mn equity
shares
These funds will be used for
setting up a large-scale
greenfield manufacturing
facility, setting up of
backward integration for key
APIs, inorganic opportunities
in the CRAMS business, and
reduction of debt (Rs 2bn debt
reduction in our view)
As of May-19, the co has
received a consideration of Rs
1.5bn
Post completion, the company
will turn net-cash (FY20E).
Promoter holding will increase
to 45%
Page | 8
9. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
Improving fundamentals
Strong revenue growth over the last 2 years
FY19 was the first full year of operations for Solara
and on reported numbers, revenue at Rs 13.9bn grew
166% YoY.
On proforma numbers, revenue grew 35% YoY (22%
CAGR over FY17-19P) and was driven by new product
launches, growth in the base business aided by the
favourable market for Ibuprofen API, and higher
capacity utilization with the acquisition of the
Ambernath plant.
The co is operating at optimal capacity utilization in
its 4 key plants whereas the newly commissioned
facility at Ambernath (FY19) is at ~30% utilization.
Expect ~16% Revenue CAGR Over FY19-21E
Source: Company, HDFC sec Inst Research
A healthy outlook on the revenue growth momentum
Key products like Ibuprofen, Gabapentin, and
Ranitidine forming the base business will continue to
grow at a stable rate of 8-10% over the coming years
owing to favourable market conditions and long-term
contracts with key clients.
Additionally, Solara filed 9 DMFs during FY19 (50+
cumulatively till date) and aims to file 10+ DMFs
annually going ahead, which will drive new product
launches.
Moreover, the Ambernath facility is expected to
reach 50/80% capacity utilization by FY20/21E while
the others will continue at optimal levels.
These factors will enable Solara to comfortably
achieve ~16% revenue CAGR over FY19-21E.
Greenfield expansion at Atchutapuram will get
commissioned by FY21E and drive growth thereon.
Robust Quarterly YoY Growth Over FY19P
Source: Company, HDFC sec Inst Research
Solara has reported a stellar
performance in FY19P with
35/59% YoY revenue/EBITDA
growth (proforma nos)
Each quarter of FY19 has also
grown consistently at 20%+
YoY, reaching quarterly
revenue of Rs 3.9bn by
4QFY19
We believe the company can
comfortably achieve our
estimate of ~16% CAGR in
revenue over Fy19-21E on the
back of new product launches
(supported by 10+ DMF filings
yearly), continued growth in
the base business, and scale
up in the newly acquired
Ambernath facility
9.5 10.4 14.0 16.1 18.6
9.6
35.0
14.9 15.4
FY17
FY18
FY19P
FY20E
FY21E
Proforma Revenue (Rs bn) YoY (%)
2.3 2.8 2.6 3.0 3.0 3.4 3.6 3.9
29.5
22.3
37.9
26.7
1QFY18
2QFY18
3QFY18
4QFY18
1QFY19
2QFY19
3QFY19
4QFY19
Proforma Revenue (Rs bn) YoY (%)
Page | 9
10. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
Regulated Markets: 76% Of Revenue In FY19P
Source: Company, HDFC sec Inst Research
Favourable Filings Track Record
Source: Company, HDFC sec Inst Research
Reducing Concentration Risk (% of sales)
Source: Company, HDFC sec Inst Research
R&D Spend To Ramp Up Further
Source: Company, HDFC sec Inst Research
32
30
3
9
26
37
25
6
8
24
NA EU Japan WHO ROW
(%)
Inner circle - FY18
Outer circle - FY19P
59
79
52
78
Top 10 Customers (%) Top 10 Products (%)
FY18 Fy19P
Regulated markets of US, EU,
Japan and WHO account for
76% of Solara’s revenue
(FY19P). The US is the biggest
geography within this
segment
Solara’s biggest client is
Strides, which accounts for
less than 25% of total revenue
(FY19P)
Solara has filed 9 DMFs in
FY19 and 50+ DMFs
cumulatively till Mar-19. The
co aims to file 10+ DMFs
annually over the next two
years
Robust R&D pipeline to
expand the current range of
product offerings
6 6 9 10 12
FY17
FY18
FY19P
FY20E
FY21E
DMFs Filed(x)
103
448 563 650
1.0
3.2
3.5 3.5
FY18
FY19P
FY20E
FY21E
R&D(Rs mn) R&Dto Sales (%)
Page | 10
11. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
Gross Profit Margin
Solara has achieved a 140bps YoY improvement in
gross margin over FY19P owing to synergy benefits
and cost reduction initiatives, which will continue
over the next two years.
Additionally, with an aim to file 10+ DMFs annually,
Solara will achieve a healthy rate of new product
launches.
As the contribution of more lucrative molecules (like
niche APIs, Ibuprofen derivatives, etc.) increases,
product mix will improve over FY20-21E.
The company is also looking to set up backward
integration for some key molecules which will lead to
additional savings in RM cost.
We expect further expansion of ~160bps in gross
margin over FY19-21E.
Improving Product Mix & Backward Integration To
Drive Gross Margin
Source: Company, HDFC sec Inst Research
EBITDA margin
Owing to higher operating expenses led by
restructuring activities and commissioning of the new
facility, EBITDA margin remained subdued in FY18
(14%). However, benefits from synergies between the
Strides and Sequent businesses forming Solara and
absence of restructuring costs have enabled a 390bps
expansion in EBITDA margin (+250bps in proforma
numbers) during FY19P.
R&D (3.2% of sales) will remain heightened to
support DMF filings, whereas employee cost could
increase owing to capacity expansions and ramp up in
CRAMS. However, improvement in product mix
coupled with oplev and cost-saving initiatives will
drive 140bps margin expansion to 17.3% (reported)
over FY19-21E in our view.
EBITDA Margin: Expect a ~140bps Expansion Over
FY19-21E
Source: Company, HDFC sec Inst Research
Synergy benefits from the
merger of Sequent’s and
Strides’ business units, as well
as cost reduction initiatives
have led to a 140bps YoY
improvement in gross margin
for Solara in FY19P
Improving mix (higher
contribution from niche APIs)
and setting up of backward
integration will drive further
margin expansion over FY19-
21E
The EBITDA margin was
subdued due to restructuring
activities in FY18. However,
synergy benefits and absence
of the one-off restructuring
costs led to a 250bps YoY
increase in FY19P
Going ahead, we believe oplev
and cost rationalization will
expand margins further,
despite increased R&D spend
and employee costs
1.2 1.5 2.3 2.6 3.2
12.5
14.1
16.6 16.4
17.3
FY17
FY18
FY19P
FY20E
FY21E
Proforma EBITDA (Rs bn) Margin(%)
47.8 49.2 50.3 50.8
FY18
FY19P
FY20E
FY21E
ReportedGross Margin(%)
Page | 11
12. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
Earnings to double in two years
The reduction in debt following the recent fundraise
(and also aided by healthy FCF) will reduce interest
costs by ~40% over FY19-21E. This would boost the
EPS by ~Rs 8.2 in FY21E (20% of our estimate).
Additionally, the co has ~Rs 2bn of carried-forward
losses, which will keep effective tax rates at single
digits over FY20-21E.
Considering this, we model a 50% CAGR in PAT over
FY19-21E.
PAT: 50% CAGR In Proforma PAT Over FY17-19P
Source: Company, HDFC sec Inst Research
The key growth drivers for
earnings over FY19-21E apart
from the strong operating
performance are: (1) reduced
interest cost following debt
reduction, and (2) carried-
forward losses which leave
effective tax rate at single-
digits 0
60 671 946 1,518
300
522
FY17
FY18
FY19P
FY20E
FY21E
ReportedPAT (Rs mn) Proforma PAT (Rs mn)
Page | 12
13. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
Improving Balance Sheet
The merger of Strides’ and Sequent’s business units
to form Solara led to the creation of a Rs 3.6bn
goodwill (not subject to amortization, will only be
tested for impairment), thereby inflating the BS.
The merger also led to the acquisition of a high level
of debt, which stands at Rs 4.4bn as of FY19P (net
debt at Rs 3.6bn). However, the recent fundraising
activities will inject Rs 4.6bn cash in the books, part of
it (~Rs 2bn in our view) will be used to repay debt.
Subsequently, Solara will become net-cash by FY20E.
Fundraise And Internal Accruals To Relinquish Net
Debt By FY20E
Source: Company, HDFC sec Inst Research
FCFs to show uptick in FY21E
Following the strong improvement in operating
performance and limited capex needs owing to
additional capacity with the recently acquired
Ambernath plant, FCF has seen a healthy turnaround
from Rs -364mn in FY18 to Rs 1.7bn in FY19P.
We believe the capex needs would remain low over
the next few years with only one Greenfield
expansion (Atchutapuram facility) planned as of now,
whereas the co could go for acquisitions to boost its
CRAMS business. This would be funded by a part of
the funds raised recently.
Healthy FCF To Be Maintained
Source: Company, HDFC sec Inst Research
While Solara’s balance sheet
remains elevated due to the
merger-related goodwill (Rs
3.6bn), we expect net debt of
Rs 3.6bn as of FY19P will be
relinquished with the recently
raised funds and continued
operating cashflows by FY20E
While Solara’s greenfield
expansion in Vizag will require
capex of ~Rs 2.5bn, and the co
has also indicated its
willingness to go for inorganic
growth in the CRAMS
business, we believe
incremental capex would be
limited over FY19-21E and the
requirements would be
fulfilled by the recent
fundraise as well as internal
accruals
5.3 3.6
-0.2 -0.3
0.7
0.4
(0.0) (0.0)
FY18
FY19P
FY20E
FY21E
Net Debt (Rs bn) Net D/E (x)
0.5
2.9
2.6
2.9
0.9
1.7
2.5
2.2
(0.4)
1.2
0.1
0.8
FY18
FY19P
FY20E
FY21E
OCF (Rs bn) Capex (Rs bn) FCF (Rs bn)
Page | 13
14. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
Return ratios improving
Adjusting for goodwill, RoE came in at 2.9% for FY18.
The robust performance in FY19P has boosted Adj.
RoE to 13.4% for the year. Going ahead, with the
expectation of ~50% PAT CAGR, we believe the co will
achieve double-digit RoE despite the fundraising
activities (which will inflate equity).
Goodwill Suppressing RoE
Source: Company, HDFC sec Inst Research
Re-rating likely
At CMP, the stock trades 16.4/10.2 FY20/21E EPS.
Given its steady base business and high visibility on
improving operating performance, we believe the
stock will re-rate and move closer to its peer-set
average of 15x.
While we don’t actively cover Solara, we assign a
multiple of 15x and arrive at a Fair Value of Rs
650/sh. Solara looks best-placed in the pure-play API
Pharma space.
Lucrative Valuations: ~30% Discount To Peers
Source: Company, HDFC sec Inst Research
While operating performance
will remain robust over FY19-
21E, inflated equity capital
following the fundraise will
pressurize return ratios
Solara is trading at a discount
of 30% to our coverage
universe. Given the high
visibility on growth over the
next two years, improving
balance sheet, and clean
regulatory compliance, we
believe the stock is bound to
re-rate in the near-term
1.6
7.8 7.7
9.7
2.9
13.4
10.9
12.6
FY18
FY19P
FY20E
FY21E
ReportedRoE (%) Adj. RoE (%)
25.9 6.8 5.8 4.8
17.0 16.4
10.2
FY18
FY19P
FY20E
FY21E
EV/EBITDA (x) P/E (x)
Page | 14
15. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
A Glance At The Trailing 4 Quarters
Quarterly Financials Snapshot (Standalone)
Particulars (Rs mn) 4QFY19 YoY (%) QoQ (%) 3QFY19 2QFY19 1QFY19
Net Sales 3,853 26.7 8.2 3,562 3,423 3,028
Material Expenses 2,014 29.9 14.7 1,755 1,761 1,518
Employee Expenses 483 (1.0) 487 461 428
R&D 136 403.7 30.8 104 111 97
Other Operating Expenses 574 (44.5) (3.6) 596 610 524
EBITDA 647 50.3 4.3 620 481 461
Depreciation 234 33.0 10.3 212 194 191
EBIT 413 62.4 1.2 408 287 270
Other Income 66 39 14 5
Interest Cost 217 225 199 182
PBT 262 99.7 18.3 221 102 92
Tax (0) - 6 -
PAT 262 138.2 18.5 221 96 92
Source: Company, HDFC sec Inst Research
Margin Analysis
4QFY19 YoY (bps) QoQ (bps) 3QFY19 2QFY19 1QFY19
Material Expenses % Net Sales 52.3 131 299 49.3 51.4 50.1
Employee Expenses % Net Sales 12.5 (116) 13.7 13.5 14.1
R&D % Net Sales 3.5 264 61 2.9 3.2 3.2
Other Expenses % Net Sales 14.9 (182) 16.7 17.8 17.3
EBITDA Margin (%) 16.8 264 (62) 17.4 14.1 15.2
Tax Rate (%) (0.2) (1,618) (15) - 6.2 -
APAT Margin (%) 6.8 318 59 6.2 2.8 3.1
Source: Company, HDFC sec Inst Research
Solara has grown at strong
double-digits YoY over the
previous four quarters
R&D spend has also been
increasing consistently, now
at 3.5% of sales
Finance cost will reduce as
debt is reduced owing to
recently raised funds
Carried forward losses will
reduce tax expense, thus
improving earnings over the
next few years
Page | 15
16. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
Key Management
Director Designation Description
Jitesh Devendra CEO
Jitesh has more than 20 years’ experience and has led the North America API business
as well as managed the Formulations P&L business of erstwhile Shasun
Pharmaceuticals Limited, which got merged with Strides Shasun Limited. Jitesh has
been responsible for P&L business for North America and Europe Finished Dosage
Form (Regulated Markets-Region 1) and overall responsible for API business P&L.
Hariharan S. CFO
Hariharan is a Cost Accountant with rich and varied experience of more than 30 years
in the field of Corporate Finance, Accounts and Strategic planning. He played a vital
role in the merger process of Shasun Pharmaceuticals Ltd. with Strides Shasun Limited.
Sreenivasa Reddy B. COO
Sreeni has over 24 years of experience in Pharmaceutical Manufacturing, Technology
Transfer, Project Management in setting up facilities, Quality Assurance, Plant
operations, and Sales & Marketing.
Source: Company
Page | 16
17. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
Attractive Valuation
Solara is currently valued at a steep discount
compared to its peers. The average P/E, EV/EBITDA,
and P/S comes to 22.3, 11.7, and 2.3 respectively.
Solara is 24%, 42%, and 65% below the average on
these parameters.
As expected in our earlier two notes on Solara, the
management has decided is committed to reduce the
debt using some of the funds raised through
warrants. We believe it will have positive impact on
both earnings and valuations.
With debt reduction of Rs 2bn, we expect a 40%
decrease in interest cost by FY21E. This, coupled with
a 16/21% revenue/EBITDA CAGR over FY19-21E will
enable PAT to jump >2x. Adjusting for the Rs 3.6bn
goodwill, return ratios will be in high-teens by FY21E.
A focus on lucrative APIs and CRAMS is likely to
improve business fundamentals further, beyond
FY21E. While we don’t actively cover the stock, we
arrive at a fair value of Rs 650 (15x FY21E EPS).
Peer Set Comparison
CMP
(Rs/sh)
Mkt Cap
(Rs bn)
Revenue
(Rs bn)
EBITDA
Margin (%)
Net Debt
(Rs bn)
Net Debt/
EBITDA
EPS
(Rs)
ROE
(%)
P/E
(x)
EV/EBITDA
(x)
P/S
(x)
Divi’s Labs 1,547 411 49.46 37.8 (19.55) (1.0) 48.8 20.1 31.7 20.9 8.3
Dishman Pharma 221 36 20.59 26.8 6.20 1.1 16.7 15.4 13.2 7.6 1.7
Laurus Labs 332 35 22.92 15.5 9.40 2.6 10.7 6.2 31.1 12.6 1.5
Suven Life 270 34 6.64 24.2 (2.07) (1.3) 6.8 10.9 39.6 20.1 5.2
Shilpa Medicare 348 28 7.33 21.2 0.73 0.5 13.8 9.4 25.3 18.7 3.9
Granules India 93 24 22.79 16.8 8.44 2.2 9.3 16.7 10.0 8.4 1.0
Hikal 169 21 15.90 18.8 5.68 1.9 8.4 13.6 20.2 8.9 1.3
Aarti Drugs 518 12 15.61 13.3 4.66 2.2 38.6 16.5 13.4 8.0 0.8
Solara 442 11 13.87 15.9 3.63 1.64 26.0 13.4 17.0 6.8 0.8
IOL Chemicals 189 11 16.85 24.3 2.28 0.6 41.7 49.9 4.5 3.2 0.6
Morepen Labs 17 8 7.69 8.8 (0.21) (0.3) 0.6 11.4 26.4 11.0 1.0
Neuland 521 7 6.67 8.8 1.64 2.8 12.8 2.6 40.7 14.3 1.0
SMS Pharma 55 5 4.65 19.4 1.15 1.3 4.8 11.8 11.4 6.4 1.0
Source: Company, HDFC sec Inst Research
All numbers are based on FY19 data and CMP as on 21st
June 2019.
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21. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
Rating Definitions
BUY : Where the stock is expected to deliver more than 10% returns over the next 12 month period
NEUTRAL : Where the stock is expected to deliver (-)10% to 10% returns over the next 12 month period
SELL : Where the stock is expected to deliver less than (-)10% returns over the next 12 month period
1YR PRICE MOVEMENT
100
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250
300
350
400
450
500
Jun-18
Jul-18
Aug-18
Sep-18
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Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Solara
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22. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
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Any holding in stock – No
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23. SOLARA ACTIVE PHARMA SCIENCES: COMPANY UPDATE
HDFC securities
Institutional Equities
Unit No. 1602, 16th Floor, Tower A, Peninsula Business Park,
Senapati Bapat Marg, Lower Parel, Mumbai - 400 013
Board : +91-22-6171-7330 www.hdfcsec.com
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