Thread by @drprashantmish6

Strides pharma Sciences Ltd
What i don’t like-
Low Promotors holding (29.71%)
-Pledged shares 46.84%
- Debt of around 2200 Cr ( Net debt of 1000 Cr )
- Even with Good track record USFDA warning letter for Pudducherry plant)It was not expected with a dynamic promoter Arun Kumar

Ranitidine issue was a major setback but they are coming out of it.
- Past growth and financial parameters’ are not looking attractive to me but because of q1 results I started investing and bought some at around 530 and will buy more at corrections .

What i like
Growth hungry management –
They are having 8 manufactring units, Bengaluru (two), Puducherry, and Chennai, the US, Singapore, Italy and Kenya.
Aquired USFD approved facilty in the US. This facility will meet the enhanced requirements
So it will be Made in US products

The South African pharma market (valued at US$3.4 Billion) is the largest in the pharma market in SubSahara Africa with stringent regulations. This makes it not-readily accessible to all players.

so stride entered South Africa and acquired Trinity Pharma in December 2017. ( With Aim of In Africa for Africa)

They Aquired strategic stake in Fairmed Healthcare AG( Switzerland) in with aim of gaining a strong foothold in Germany, Austria and Switzerland (DACH region).Fairmed is a Switzerland-based company with a portfolio of high‐quality generic products, comprising prescription and OTC

In AUSTRALIA Preferred supply contract with Arrotex - the #1 generics entity in Australia(10-year preferred supply contract with Arrotex)

They Added 18 ANDAs from Pharmaceutics International, Inc( Pii). for the US market out of which , 11 are currently approved by US FDA, while the remaining seven products are submitted and are under different stages of review with the regulatory agency.

Of the 11 approved ANDAs they are currently commercialising two with product supply from Pii.
Created joint venture with Sihuan Pharmaceuticals for the China markets

US Business ( From AR 2020)

During FY 2019-20, Launched 6 products delivering revenues of US$20 Million in FY 2019-20
In FY 2020-21, they are planning to introduce 4-5 new products from already approved product basket
.

Moreover, 10-12 new product approvals are expected in FY 2020-21, and planning to file 12-15 new ANDAs with the US FDA.

Received approvals for 16 new products for Canada, Europe, Australia and South Africa
(In q1 21 Filed 2 ANDAs and received approval for 3 new ANDAs. In the other regulated markets, filed 4 products and received 2 new product approvals)

Stelis Biopharma ( Breakeven expected in 2022 )stelis is currently their associate and will become subsidiary by 2022)
Frowth drivers from stelis
1-Biopharma ( Biosimilars)
• Biosimilar PTH (Teriparatide) targeting Osteoporosis with < 4 global competitors

Disrupting high volume insulin and analogs space with low-cost technology- company feels that lower cost of their insulin will be a growth driver as compare to existing high cost insulin.
Sodium hyaluronate-for osteoarthritis (knee joint injection)

2-BioSource(Contract Research for biologics and other CDMO services.
End to end biopharmaceutical development and manufacturing needs for customers • Comprehensive services to support all phases of pre-clinical and clinical development

3-Commissioning a state-of-the-art vaccine suite for multiple vaccine types , going on stream from December 2020 , with yearly capacity of 60 million vaccines and 25 Million for Lyophilised vaccines •

Stelis biopharma ( Biosimilar portfolio) 👇🏼

So I feel that with expansion into new geographical area with expanding portfolio and made in US for US , made in Africa in Africa and Stelis biopharma business will be growth driver but only in long term , no short term gain is expected.

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