@Vivek_6954

If venturing into commercial manufacturing is successful, then 5 years post start of commercial manufacturing, opportunity could be huge for this company…..It will not be right to put any number to it but one can gauge the size from the fact that industry itself is likely to grow in double digits in foreseeable future.

Getting associated with an innovator for NME takes atleast 8-10 years of trust building….forget here the high quality standards you need to maintain and multiple inspections that you need to clear not only from regulatory authorities but also from the innovator.

Just wait for Sep.’15 shareholding vivek, its not far away…..we might find good institutional holding in that shareholding disclosure. With rgds. to Columbia Pacific, you can find its details on https://www.columbiathreadneedleus.com ….its heartening to see the fund investing more than 3 % of its corpus in Syngene……the fund seems to be a long term investor with many bluechip names in its holding….

Rgds.

@Mahesh I like both Syngene and Suven – both would be among my top 6-7 bets (if I was forced to take 6-7 bets). With Syngene, what I like more is that they are involved from discovery stage for many molecules. With Suven, what I like is that they have mind-blowing margins for CRM (ex their in-house research); inspite of their cash guzzling research, and assuming none of this fructifies, I still believe Suven is a very good business. If one wants to take the inhouse research into consideration for valuation, then I agree – Suven has no place in a concentrated portfolio. Syngene I feel is slightly overvalued at CMP, Suven is fairly valued.

@Vivek_6954 As Mahesh has mentioned, the 3 phases of clinical trials take 6-8 years, not even considering the discovery phase. So if a company enters this business today and if they get small contracts, the partner might see that they are doing good work after few years, but to build trust about privacy with the partner, and particularly in the industry would take a longer time. The other aspect is one would need to start with smaller number of scientists and increase as one gets more contracts. One can poach a handful of experienced scientists here-there but not a team as large as Syngene.

Q for scuttlebutt: How satisfied are the scientists at Syngene/Suven with their careers?

Discl.: No holding in Syngene or Suven. Recently sold off stake in Suven on realizing mistake that there is no MoS.

Mahesh,

Thanks for explaining the Syngene story in a lucid way.

Whats your take on Opp size & ROCE for the co?Will it be in an ever increasing model?

Are entry barriers so high that it will take a long time for competitors to creep in?

Any update on instl holding in the co ? who is this columbia pacific which bt 18 lacs shares on listing day?

When we see the Annual results for some companies the screener shows Mar 14 as last year and some companies Mar 15 as Last year. Is this some kind of error? Some companies example listed below

Premco -Mar 14
Kaveri seeds -Mar 14
Ajanta Pharma -Mar 15
Poly Medicure -Mar 14