See Panacea Biotec: Vaccine for risk.
Panacea Biotec continued its’ path of growth and profitability. Panacea Biotec reported good results for the 1st Quarter of FY 2011.
Panacea Biotec‘s operating income was up a whopping 42.89% at Rs. 258.41 crores while it’s Operating Profit kept pace at Rs. 60.06 crores, up 31.45%. The adjusted net profit was up to Rs. 32.55 crores, a whopping 149.81% over last year’s first Quarter comparison.
Panacea Biotec‘s superior financial performance was aided by an increase in demand for its popular products “Easyfive” and “BOPV vaccine”. These products were responsible for the 46% growth in the vaccine business of Panacea Biotec.
Panacea Biotec also commenced supply of organ transplant products to Latin American countries which resulted in a four-fold growth in Panacea Biotec‘s export pharma formulation segment.
Panacea Biotec Key Financials
|
| (Rs cr) | Jun 2010 | Jun 2009 | YOY |
|---|---|---|---|
| Operating Income | 258.41 | 180.85 | 42.89 |
| Total Expenses | 198.35 | 135.16 | 46.75 |
| Operating Profit | 60.06 | 45.69 | 31.45 |
| Other Income | 1.26 | 1.27 | -0.79 |
| PBDIT | 61.32 | 46.96 | 30.58 |
| PBT | 35.39 | 21.12 | 67.57 |
| Adjusted Net Profit | 32.55 | 13.03 | 149.81 |
Panacea Biotec also has a contract with UNICEF to supply “Easyfive”. Supplies by Panacea Biotec under this contract to UNICEF began in Jan 2010. Panacea Biotec also has a long term contract worth US$222mn which has to be executed till Dec 2012.
The other important event with Panacea Biotec is the buy-back of 5.5mn shares at a price not exceeding Rs 229. Panacea Biotec has started the buy-back of a maximum of 5.59mn shares (8.3% of existing equity) at a price not exceeding Rs229. Panacea Biotec will need between Rs 1 bn to 1.25 bn to fund the buy-back. Panacea Biotec has stated that the funding will be done through internal accruals and borrowed funds.
Buy-backs are usually a good sign of confidence by the management that the market price of the shares is low and under-priced.
About Panacea Biotec
Panacea Biotec is one of India’s leading research-based health management companies with established research, manufacturing and marketing capabilities. Panacea Biotec is the 2nd largest vaccine producer in India. Panacea Biotec has been ranked as the 3rd largest biotechnology company (ABLE Survey- June 2009) and is also amongst the top 50 pharmaceutical companies in India. Panacea Biotec‘s product portfolio includes highly innovative prescription products in important therapeutic areas such as pain management, diabetes management, renal-disease management, anti-osteoporosis, anti-tubercular, gastrointestinal care products and vaccines. Panacea Biotec has collaborations and tie-ups with leading national and international research organizations and corporations. Panacea Biotec‘s state of the art manufacturing facilities for vaccines and pharmaceutical formulations comply with the US-FDA, UK-MHRA, SA-MCC and WHO-cGMP standards. Panacea Biotec has five dedicated research and development centers. Panacea Biotec has around 3200 employees including over 300 scientists. Panacea Biotec also has 24 product patents, valid in more than 60 countries worldwide.
Panacea Biotec’s Research Report
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