Some key (and limited) info I collated from the concalls based on which I continue to like the company.
| Sartans (Expand into all the major Sartan APIs based on our backward integration strength) | Cont. Media (CM) (Continue to develop and expand into multiple products of Contrast media) | Future generics (Multiple APIs with patents expiring in the next 2-3 years were developed with sufficient capacities already established) | |
|---|---|---|---|
| Market Size | between $5-$10bn | The Contrast Media segment is growing at the rate of 15%, 20% year-on-year. Several bn USD (more than 1,2 bn) for CT Scan CM. CM for MRI is another (probably much bigger) market. |
$20bn |
| Divis’ strength / advantage |
The only backward integrated player, makes own KSM using photochemistry (unique to Divis) thus able to manage the impurities issue. Leader in 2 sartans already. |
High entry barriers, only 2-3 big players, market demand growing fast, but capacity expansion not happening. In the CT scan media, developed tech to recover iodine, become cost effective in production. In MRI media, developed Gadolinium based 2 compounds. |
Lowest cost producer in most products, careful product selection and gain majority market share. Large capacities available. |
| CS projects | 2 sartans with Big Pharma | 2 CM exclusively with Innovators | N.A |
| Risks | Fall in Iodine prices. | Pricing pressure, raw material cost volatility. |
Disc: invested
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