#Sequent 2021 Annual Report Details 🐕🐶
@unseenvalue @punitbansal14

Sequent Scientific just published their Annual Report for FY2021. Here are some of the key highlights.
1. 65% of revenue came from regulated markets whereas 35% came from less regulated markets.
Of this, 66% revenue was from formulations and 34% was from API.
2. Figures: ₹905Cr from Formulations and ₹456Cr from API
The business generated over ₹150Cr in cash from operations alone.
CFO/EBITDA for the year stood at 73.27%
3. Revenues for the formulation business were as follows : 46% Europe(3.8% yoy growth), 18% Turkey(37.3% yoy growth), 17% LATAM(78.5% yoy growth), 10% Emerging Markets(31.3% yoy decline), 9% India(98.4% yoy growth)
4. Cash and cash equivalents on the balance sheet - ₹53.7Cr
Short term and long term borrowing on the balance sheet - ₹196.6Cr
Amount spent on capex for the year - ₹52.83Cr
5. They now have 30 commercialized APIs and 1000+ finished dosage formulations across 12 dosage forms
6. Key highlights in the formulation business:
i) Commercialised Tulathromycin, first India R&D developed product, with major commercial success in Europe
ii)Launched Citramox LA, first long-acting injectable & Halofusol, in-house developed oral solution for European markets. Approval was received in less than 12 months of filing
iii)Operationalised multi-year,multi-product distribution arrangement with Zoetis for the Indian market
iv)Submitted first filings in US, Canada, and Australia
v)Started upgradation of the facility in Bremer, Germany for US commercialisation. Thus upgradation will take the capacity to 4X but has been delayed due to COVID related complications.
vi)Currently working on enhancing the Beta-lactam and oral solids manufacturing capacities at the Turkish facility which will be completed in 2022 which will help to meet growing demand from the European market.
7. Key highlights in the API business:
i)Commercialised 3 APIs and submitted 4 USVMF filings
ii)Completed the first phase of expansion at Vizag to and initiated the second phase of expansion which is expected to be completed by the end of this year
iii)Completed de-bottlenecking at Mahad to enhance Albendazole capacities
iv)Signed long-term arrangement with a major animal health company for CDMO and product supplies with co-investments at Vizag
v)Initiated in house manufacturing of key starting materials (KSMs) for backward integration, to mitigate the impact of supply chain disruption and geopolitical challenges
8.R&D pipeline: 35+ products in the pipeline for formulations and 8+ products for API
9.Formulations pipeline:
i)By species: 81% production animals 19% companion animals
ii)By dosage form: 55% injectable, 26% powder/premix, 13% liquid, 6% Solid
10.They now have 4 new board members: Milind Sarwate (Independent Director), Neeraj Bhardwaj(Carlyle nominee),
Gregory John Andrews(Carlyle nominee), Rahul Mukim(Carlyle nominee) and Dr. Fabian Kausche(Carlyle nominee). They bring in a lot of experience in building businesses and expertise in R&D as well as the animal health business.
11.They engaged with Stonehaven Consulting, a specialist firm in the Animal Health space, to help formulate a growth strategy and also hired PwC to help strategise operations for efficiency and cost.
Both projects have been completed and they have a blueprint for how the future business will look.
12.They consolidated the minority interest in Turkey, Belgium and the Netherlands during the year and expect to consolidate Brazil’s business later in the current financial year.
This was largely funded by liquidation of the Strides stake(about ₹157Cr).

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Value Educator

Value Educator Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @ValueEducator

29 Aug
#valiantorganics Update :
1. OA capacity expanded to 4800 MT
2. ONA (Raw material for OA) capacity increased to 7200 MT. It will increase the margins. (New Product)
3. #PAP #paraaminphenol Production started. 200 MT in Q1 and expected to be 2300 MT in FY22. Total capacity 9000MT
4. Increased the stake in bharat chemicals from dhanvallabh venture LLP ( from 40 to 50%)
5. #bharatchemicals capacity of #paracetamol increased to 9000 MT
6. Raw material price increased in Q1, which will be passed on in Q2. #OA,#ONA,#PA,#PNA,#PAP will started contributing
7. New capex for #apis (chemicals for APIs). Mostly for apis manufactured by #aartiindustries and #aartidrugs
Intermediates will be manufactured for following APIs :
1. Ranolazine
2. Benazeprill
3. Elagolix
4. Pranlucast
5. Moxifloxacin
6. Ramipril
7. Montelukast
8. Quinapril
Read 4 tweets
7 Aug
An analysis of #Sequent - India’s largest Animal Health Company
Like and retweet for more learnings 🐶🐕
A thread!🧵
1. Points covered :
2. Promoters and management
3. Company overview
4. Why is it different from human pharma
5. Opportunity size
6. Stability of business
7. FMCG like business
8. Barriers to entry
9. Manufacturing facilities
10. Summary of financials
11. Major acquisitions
12. Capex Details
13. Reduced Debt
14. Future Growth prospects
15. Valuation
Promoters and management
Carlyle Group - Private equity firm Carlyle Group acquired a majority stake in Sequent in 2020 and are the new promoters of the company. They have a lot of experience investing in the healthcare sector both in India and globally.
Read 34 tweets
7 Aug
Here are some downstream derivatives for #phenol
#Deepaknitrite will be doing 700 Cr capex for the products which are used in paints & coatings , lifesciences.
Check the following list & comment what can be downstream derivatives of #phenol ?
Like and retweet for more learnings🧪
Read 5 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!