Q2FY22 Conf Call (Nov 07, 2022) synopsis (rephrased as per my understanding):
→ Misc: Global logistics scenario improved, witnessing receding sea and air freight costs. Energy costs continued to be high- 2x to 4x. This quarter OPM (33%) is the new normal for the immediate 1 or 2 quarters. (My Guess ….4~6 quarters as a new CSM opportunity would take that much time to materialize)
→ Generic APIs: FY23 to 25, patent expiry due for $20 billion worth of drugs. Developed processes, filed a few drug master files in several of the regulated markets, and in the process of filing the remaining; soon some of the qualifications by the customers will be completed. As the patents expire, customers will be able to launch and Divi will be able to supply the API. Post-COVID demand for anti-infective, anti-arthritic, antiallergic, and painkillers is likely to improve, especially cough and cold medicine.
→ Custom Synthesis Business: Business looks much better than at any given time. Received several opportunities in the last 6 months, mainly in phase 2, and phase 3; and hopeful to see good results from those products in the near future by FY24. Pre-COVID opportunities used to be in very early phases 1 or 2. Now, many opportunities in phase 1 and phase 2, but also a couple of fast-track phase 3 projects. During COVID most companies concentrated on anti-COVID drugs. Now, big pharma looking at the next immediate requirement and found some good compounds to launch in a fast-track manner. This augurs well for Divis after recent execution, making 100s of tons, of a fast-track project in 1 year. 2023 and 2024 are going to be the years when a lot of opportunities in custom synthesis will happen.
→ Contrast Media Opportunity: Big opportunity. Two kinds - The first one (iodine-based) is for the CT scan and the second one (Gadolinium compounds based) is for MRI. Now, entering into MRI contrast media as well.
- Filed in several countries and are in the qualification stage for our customers. Two of the APIs are being produced exclusively for the Innovators where all qualification works are in process. I assume this was for the iodine-based one…??
→ Sartan opportunity: Backward integrated as produce own raw material (Ortho Tolyl Benzonitrile, using a new technology - photochemistry) which is common to all sartans
- Leaders in 2 sartans.
- 2 more sartans in generic - decent volumes, qualifications are under progress.
- Another big pharma sartan - qualification is complete, commercial quantity manufacturing is on the progress
- Have a customs synthesis project of sartan where qualification is complete
Disc: Holding in family account.
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