Thread by @BikramSingh43

A thread on #Lauras lab stock
Company is mainly into 3 business segment
1. Generic API
2. Formulations
3. Synthesis (CDMO)

let's focus on risk & opportunity in each segment rather than focusing on number which are known to us.
.
(1/11)

Diversification : Co revenue from Generic API was at 95% & Synthesis was at 5% in FY16 to 54% revenue from API , 36% from Formulation & 10% from CDMO by FY20.
Co has done extremely well to diversify the business within 4 year.
(2/11)

Generic API:
1. Contribute more than 50% revenue & major products
are : ARV , Hepatits-C , oncology , other API which include
cardiovascular, anti-asthmatic, gastroenterology API.

2. Other API growth are at highest level 207% yoy.

3. ARV was in de-growth for 3qtr..
(3/11)

due to change in treatment regimen from Efavirenz to Dolutegravir & uncertainty in regimen change in South Africa

4. In Q1FY21,ARV finally grew at 19% yoy after 3 qtr of degrowth which triggered many market participant
ARV contribute : 64%
Oncology : 10%
Other API :26%

(4/11)

Need to see how ARV perform going forward.
mngmt is bulish on stability in the Efavirenz(treat HIV) market in ARV.
Co is diversifying API business very fast.

Capex: increasing API capacity by 20% in the next 12-month.

(5/11)

2. Formulation
Contribution from 0.1% to 36% to revenue by FY20 in 5yr
Major products are: ARVs ,Anti-diabetic,Cardiovascular PPIs CNS
TLE400 and TLE600 got approval(HIV)ARV first line treatment
High growth in developed markets of USA &Eu
due to high volume & HCQ
(6/11)

HCQ volume will reduce
Pregabalin increase in demand
Total of eight final approvals and five tentative approvals, a total of 26 ANDAs filed so far.
Acquired Aspen Pharmacare’s South African subsidiary to enable to enter the South African formulations tender market
(7/11)

South African ARV market is the world’s largest tender-driven market.
capex : FDF installed capacity will be closer to 9 billion units per year by 2021 end.

Co has strategic partnership with Global Fund who operate in 150 countries & PEPFAR (50 countries)...
(8/11)

Under this partnership co supplied TLD for LMIC countries and participate in tender.
Major funding is for HIV & maleria & funding has increased this year.

Need to track on the funding of these 2 organisation as they work in 3 year cycle.
(9/11)

Synthesis portfolio:
Commercial scale contract manufacturing.
Analytical and research services Nutraceuticals, dietary supplements and cosmeceutical products.

mngmt is very bullish is our CDMO business.

Added highest number of customer in the last two quarters.
(10/11)

CDMO growth was 37% yoy
Currently,co have 50 active projects

Company is doing extremely well in all segment & tracking point should be how fast co is diversifying the API segment & performance of ARV

@AnyBodyCanFly @punitbansal14 @safiranand @adi2five
@Dinesh_Sairam
(11/11)

@varinder_bansal bhai Co is performing extremely well in all three segment