Thread by @drprashantmish6

#GUFIC BIOSCIENCE LTD

1- MCAP 450 Cr , BV 10.85, ROE >25 ROCE > 25 , OPM around 13%, DEBT 115 Cr. 2-Promoters holding 65.75% , SBI MF around 5% and ICICI MFaround 3% holding

3-Gufic is having 4 divisions A-Healthcare :
Herbal drugs . The manufacturing unit of herbal products are situated in Belgaum, Karnataka. And turnover for the year fy 19 was more than `. 28 crores.

B-Spark ::
It is one of the oldest division and introduced some unique products cough syrup with oral dosing syringe, sertaconazole in ointment and lactic acidosis gel with unique applications

C-Criticare & Criticare Life-Lyophilised injectable antibiotics, this division was initiated in the year 2015. This division contributes to around 40% of the Company's turnover .( Plant in Navsari )

Lyophilization transforms a drug product from a liquid to a stable solid by removing water or other solvents. Drug developers are increasingly interested in this technique as it can to extend the shelf life of both small and large molecule drugs.

D-Ferticare & Ferticare Life
This division was formed in the year 2016. It provides comprehensive fertility care through innovative, high-quality products and caters to manufacturing of hormonal products for 60% of Indian companies.

Gufic is the first Indian Company to launch Gufigest SR capsules, used for correcting menstral disorders 4-It has branded business, contract manufacturing and API business

5-Till now because of long credit days issue cash flow was the major problem but now company is keeping strict narrow credit term ( which leads to some cancellations of order this year in contract manufacturing business)

but its branded business, exports and API growth will compensate this loss of business

6-R& D - 23 active products in pipe line , launched 10 products in fy 19 , 7-API manufacturing capacity is increased to 36 Tons and started backward integration of API to reduce dependency in China

8-API Business is growing ( H1 growth 63%) although small base 9-Started Trials of Nulip ( anti viral ) WH5 ( wound management) Nucart ( osteoarthritis).

10-Company is waiting for NOC for Dalbavancin injection Trial ( first time in India )Dalbavancin injection( patent will expire in 2023) is used to treat skin infections caused by certain types of bacteria.

11-Recently got patent for levosimendan( injection used for heart failure patients ) The composition of the invention has increased solubility and stability without the use of solubility enhancing agents.( different method for composition, levosimendan is old molecule)

12-Very soon it will launch Botulinum neurotoxin in collaboration with US based company Prime Bio, Botox right now marketed by US company Allergan and used to remove fine lines , wrinkles on face , squint , muscle spasm ,

Allergan US sales was 3.57 billion Dollars in fy 18 so u can expect the demand of this unique drug, Right now we use imported Botox by Allergan and Dysport, And company expects sales of Botox only in India around 60 Cr and uses will be increased once cheaper alternative is there

Till FY 19 I was not comfortable in investing in Gufic because of cash flow problems but now cash flow problems seems to be on improving trend ( please see H1 results )

and with enhancing API capacity, Branded drugs , new unique products , Good growth in lyophilised injection segment, growing focus on export I am quite optimistic, and around 50 rs Is good accumulation price for long term .please provide more information if you know

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