There’s a gradual scale-up to Biocare Biotech seen in exports data last couple of months – almost to the tune of 200k pens. It appears more or less likely that this is the source for the 10million own IP insulin pen order.
BioCare seems to have started production fairly recently and has capacity for 60 million insulin pens
As per this news, Biocare is the first African insulin plant and was setup to reduce import bill.
It looks like Sanofi, Algeria was importing insulin and probably doing fill and finish there and had a capacity of 100 million pens (was also exporting to rest of Africa).
Somne regulation seem to have changed (either duty on imports or withdrawl of subsidies, its unclear) which has made things difficult for Sanofi once the import substituion plant of Biocare started production.
So two things are clear, there could be more to the 10 million pen order, considering the total capacity of 60 million pens at Biocare. The increase in volume from contract-manufacturing to own-IP is structural since regulation across the world have made things difficult for players like Sanofi (Lantus having price restriction in US as well at $35). Shaily volumes and margins have a potential to go up. To put it in perspective, at Rs.60 per pen, the 10 million pen order is worth 60 Cr. The whole of healthcare revenue for Shaily in FY24 was just 108 Cr in FY24 with 80 Cr coming from manufacturing. That puts this 60 Cr in context and any further volume scale as well in better context.
Disc: Invested.
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