-A HYDERABAD based pharma co. having presence in 4 VERTICALS - API’S, GENERIC–FDF(fixed dosage formulations), Synthesis and Ingredients.
- founded by Dr. Satyanarayana Chava (CEO) around 2007
- R&D spend 5.7% of Rev.
-750+ scientists and 50+ PHDs
-With inc. orders n optimal utilization of its FDF facility, bckwrd integr. of their key API’S Co hs been able to get bk on track
-development and manufacture of oral solid formulations.
-expected to be a key growth driver going ahead.
We can further divide FDF business under two heads:
i.Tender Driven ii.Non Tender
-Apart frm TLD it also produces TLE400/600 (Efavirenz) which was earlier 1st line regimen for HIV & now is most preferred after TLD.
-Apart frm Laurus, only 2 players- Mylan 7 Macleods currently hv tentative USFDA app./WHO PQ fr d same.
-It mfgs all 4 imp. mol for ARV's.(DTG,3TC,EFV,TDF)
-There is price pressure in this seg. But patient base is inc therefore high vol. r expected.
-Laurus can compete in prices & maintain margins bcoz of its backward integration of key API’S
-Metformin-Co. hs 4% mkt share in Metformin
-Pegabalin- high teen mkt share
-Launched Hydroxychloroquine in US (Mar 2020)
-Also looking to mfg REMDESIVIR & FAVIPIRAVIR.
2.GENERIC API’S-57% of Rev.
-60+Commercialized API’S in d area of ARV, ONCOLOGY, Anti-Diabetic,hepC etc
-Carboplatin is another important oncology molecule.
-Onco APIs Rev. Rs 210cr in FY20.
-Total Non ARV Rev Rs.320cr in FY20 (+54%YOY).
Good growth is expected in API seg. as co. has healthy order book.
-Out of 30-40 Active projects 1 is intermediate COMMERCIALIZED & 2 r in PHASE-3
-Added a dedicated block at UNIT-4 for C2PHARMA for contract mfg of HIGH value APIs.
CAPEX- after undergoing capex in last few yrs mgt is still going ahead with Rs.300cr capex for FY21 for expanding capacities in formulations & debottlenecking of existing formulation facilities .
-Doubling of FDF Capacity
NOTE:In last 7 yrs it has already inc its fixed assets by 3.5x from 499cr to 1726crs
2.Efavirenz (ARV) offtake might take a hit due to change in WHO guidelines.
3.Pricing pressure in ARV tender Buss.
4.Raw mat sourcing from China at 50%, though it is coming down but still can effect in short term.
Promoters released pledge on 25lac shares.
Pledged shares wrt total share cap now stands at 7.32% only.