Which will be next money making machines in Pharma Sector

Almost every one agrees that Pharma will be big money multiplier in next 5 to 10 years.But what are the sure shot winners of tomorrow irrespective of market cap.How to ride this pharma boom with minimum risk and maximum returns.I request members to give their one or maximum two top fundamental pick along with reasoning if possible.I shall review this every year on this form to salute the winner.

 

suven lifescience is the company , and can be said as the next sun pharma company in making , has great fundamentals and can be near to sun pharma in next three to five years time

 

How many of you think Sun will Rise Again in Pharma,and still has to offer its best .Can it continue to be a share for core holding of any portfolio.

 

I believe it will be Ajanta Pharma and Marksans Pharma.

 

look at lincoln pharma, anuh pharma, coral labs...these are all multibaggers in the making.

 

i know granules has already made a mark! what do you guys think of a company that contract manufatures API's and PFI's and finished dosages. they serve over 300 customers in more than 65 countries (regulated and semi regulated markets)

They are pretty innovative- especially with the way their business model has evolved over the years.

API- active pharmaceutical ingredient
This is what they started out with. I also know that its old news but they recently also bought an API manufacturing company called AUCTUS Pharma which included 2 manufacturing units and several regulatory approvals.

PFI - Pharmaceutical Formulation Intermediates
They save a lot of costs for other brands by adding value for them at different stages. Their PFI facility itself saves supply chain costs for other brands. They already do all the tests of the formulations so big companies dont have to spend time testing every formulation every time. In turn saves a lot of time for them too. MOst importantly it lowers vendor verification costs as clients (brands) only have to verify the source of the PFI. Therefore, brands find it easy to service higher demand. For most companies sourcing API's costs are ever increasing, therefore outsourcing PFI's reduces financial stress.

FD - finished dosages
one of the largest single site facilities around 18billion dosages

Further, GRANULES INDIA has its own abbreviated new drug applications (ANDAs) and dossiers which enable customers(other brands) to quickly enter a market instead of filing their own applications.
Above and beyond they always looking to capacity enhancements in existing and new products, they strongly focus on operational excellence. Mr. Krishna Prasad Chigurupati the boss at Granules India says, "Save cents per kilo. Given the volume of products, can make the difference between leaders and laggards.” They also have strategic partnerships and JV's with Ajinomoto omnichem in brussels giving them a foothold in Contract research and manufacturing services(CRAMS) one of the fastest growing segments in pharma and bio technology industry, hubei biocause from china ( a leading primary ibuprofen supplier)

Their innovation looks for ways to save costs and time for their clients (other brands). They provide clients with supply security from key intermediaries to finished dosages says that Granules india has a very customer centric marketing approach. This approach has given them an intangible asset of great value- constant search for knowledge and inturn accumalation of immense knowledge in managing applied experience, organisational technology, customer relationships and professional skills.

One more amazing thing to note about Granules is that they are very very focused. They dont work on a 100 different products simultaneously. This is what they attribute their high quality and low costs to. This is similar to what steve jobs did when he got back to apple in 1997. This is when apple started taking off.

 

Granules is Motilal's 100x stock reco...started moving after long consolidation. ..poised to move...another one is Mangalam Drug....turn around n lots of news in d pipeline coming...cheap too

 

This is Rakesh jhunjhunwala fan site.But no body discussing the Pharma company,which is one of main root cause of Jhunjhunwala, I am talking Lupin.Does Lupin has still left some steam to power our portfolio.? Or we need to find out our next lupin,to make us atleast mini Rakesh Jhunjhunwala.

 

Good point. Everyone has forgotten Rakesh Jhunjhunwala and his stocks and are busy with own stocks picks. I think LUPIN is too much of large cap to give multibagger now. I think small caps like Granules and Ajanta and Shilpa is where the money is now.

 

I keep on listening Ajanta,Torrent,Alembic ,Granules,Shilpa medicare,Aarti drugs,jb etc from different sources.Finding difficult to select one.Can members help to finalise the ultimate winner.

 

More the uncertainty in globel markets,Pharma sector becomes more attractive.This is not only a place to hide from world economic turmoil ,but also a place to mint money.But from lack of interest from fellow friends ,it looks that still they are doubtful about story.But in real world ,Pharma seems to be in sweet spot.Pl convey your bets ,so that I can increase my exposure to this sector. Also I am firm believer in Buy Right and Sit Tight. This is also true that trend is my friend.Pharma fits on both.

 

Agreed 100%. PHARMA STOCKS ARE A GOLD MINE. Pl see my post
POWER OF PHARMA !! Period (2008-2015); 7 years of WEALTH CREATION !!

THIS MEANS THAT IF YOU BUY ANY PHARMA STOCK AND SIT TIGHT YOU WILL MAKE LOT OF MONEY IN FEW YEARS. BUY Quality stocks like Ajanta, Alembic, Torrent, Shilpa, Indoco, Granules.

I THINK ALL STOCKS WILL BE ULTIMATE WINNER. JUST BUY BASKET TO AVOID FDA RISK LIKE IPCA LABS

 

i think vidhi khanna and or meenakshi razdan would be able to shed some more light

 

I think it make sense to buy a good Parma MF to capitalize on Parma growth story ... what is your opinion?

 

Agreed , some portion of Pharma play should be played through MF of Pharma and experts help in this will be helpful. Rest U can play directly,only if U r able to pin point winner.

 

Dr Reddy, Divis Lab, Cipla all three safe stocks with high corporate governance standards and no potential risk of USFDA violations

 

I also like Strides arcolab. Its one of the good companies with decent product lines, patents and quality returns.

 

Suven Life, Coral Labs still have lots of potential left in them to be unearthed. Multibaggers in a few years.

 

1.Granules India - value migration ( low margin api to high margin finished dosages), auctus turnaround, usfda approval for omnichem jv plant
2.Shilpa medicare - high margin oncology api play
3.Divis lab - capacity expansion
4.Torrent pharmaceuticals - arpiprazole exclusivity, strong pipeline, R&D, acquisitions - elder pharma products, zyg pharma ..!
5.Risk play - suven life sciences (if suvn 502 becomes commercially viable then it will give huge trigger)

 

With so much uncertainty all round,we need to hide safe and steady stocks.Pharma is the right place to hide and tide over uncertain times.Investment in Pharma is no more a choice but compulsion to preserve your capital.Which are the stocks which will swim in this time of headwinds.