Gujarat Themis Biosyn Ltd – Bulk Drugs growth momentum

Hi Avinash (@Avinash_Baskar) –

Sorry for the delayed response. Some inputs based on my understanding:

1. Rest all things being equal, global tenders are reach (overall and geo specific number of product approvals), scale (volume, backward integration) and depth (width of product portfolio) game.

   Lupin has been largest supplier of anti-TB drugs for years. Globally Lupin has second largest product approvals (20+) from WHO while rest of the players have low single digit product approvals (except Macleod Pharma, who has 32 approvals and is emerging really well). Due to backward integration into API and intermediates (in some cases) and scale of operations, they have been able to offer competitive pricing. Another aspect, i think could be agility to adopt to newer medication developments (case in point could be MDR TB, pre-adult TB medication, Rifapentine adoption) etc. where Lupin has been able to garner a significant place for itself by being in sync.

   Keeping above points in mind, hard to fathom a situation where Lupin does not get a share in Tuberculosis tenders pie – unless, they lose focus or get caught in compliance issues.

2. Not sure on GTBLs exact valet share in Lupin and Optrix demand, however, my understanding is that only Olons (Sandoz entity) and GTBL has domestic capacity of Rifa-S and Rifa-O.

3. To best of my understanding, Lupin is customer for Rifa-S and Optrix for Rifa-O. (just my understanding).

4. Other India based competitors for Tuberculosis business are Micro labs, Cadila, Sandoz and Maclods. As I mentioned above, as of now, Olon (Sandoz) is the only other domestic fermenter of Rifa-S. Macoleds has recently got PLI approval for Rifa-S, however, that may cater in parts to captive uses. GTBL has indicated that they have started catering to 2 other domestic manufacturers, though in small quantity. Rest of the demand, if any, I presume is met from China supply. On price competitiveness, I am not too sure, however, looking at margins of GTBL, least likely that there is too much of Chinese competition at the moment (however, one never knows enough about China).

Regards,
Tarun