Notes from the AGM:
Strategy
- Will remain focused on oncology API and formulations
- Cost leadership through backward integration
- Pipeline of 25 new molecules to be developed over next 5 years.
- Lung/Breast cancer and Haematology will be focus areas as these cancers affect the largest number of people
- Focus will be on molecules where they can do backward integration
Regulatory approval
- Some of the major achievements this year, as per management, were the regulatory approval from Columbia and the DCGI approval for their product. Expecting an approval from Mexico soon.
- Targeting EUGMP approval by Q2 2023.
Growth levers
- Export markets, especially LatAm, for formulations. This will be done through partners that have been identified. The Columbia approval has opened the way for LatAm markets.
- Launch 4-5 new products every year and offer a complete Onco basket
- Looking at API exports trying to replicate Shilpa’s model. They will start filing CEPs once their new API plant is ready.
Entry into Derma segment
- The selling channel and strategy in derma has similarities and they want to use that to their advantage.
- Derma and cosmetology are high margin products. They pointed to the recent Curatio acquisition by Torrent at ~9x sales.
- Currently, they are buying from 3rd parties and selling under their brand.
- If the business does well, they will look at making it themselves
Competition from Sakar
- Sakar is buying APIs from them. They don’t see any competition.
Uzbekistan
- The Uzbekistan partnership is not going as planned. They are looking at restructuring the partnership.
R&D
- Have 5 scientists
- Innovator molecules are given to them and these are then developed by them over an average 6-8 months.
Plant visit
- I visited the Quality control and Microbiology block. I could not visit the OSD section as I had to return.
- From my limted knowledge, the QC block looked modern and CFR21 compliant i.e. no manual data entry along with digitization and security controls
Other notes
- No plans to migrate to NSE main board anytime soon
- Hiring talent in Baddi is not a problem as Baddi is a big pharma cluster and people rotate between companies present there.
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