Past efforts in Domestic Market paying off:
Improving on its R&D strength, the management has been laying importance on
expanding the therapy basket from the acute segment to the faster growing segments.
While it’s an alarming force in the GI, Pain and CV therapies, it made a foray in
the dental and gynaecology segments during FY’12. During FY’13, it launches each
in the derma, anti-infective and antacid segments. Apart from entering into high
growth therapies, the second growth prong is entering into Tier-II cities and rural
markets for giving its legacy brands like Metrogyl, Rantac and Nicardia a fresh
lease of life and enhancing productivity with an attractive bonus scheme. Company
has also increased to around 1500 from 850 in FY 2011.
Strong Player in GI Segment:
It’s a strong player in the GI segment with a significant presence in the Pain and
cardio segments. In the GI space, it has targeted the antacid, diarrhea, colic,
amoebiasis and dehydration segments targeting specific ailments with single medication
or in combination. It has recognized specific niches and built good brands around
them. Besides it has cashed on the brand equity of larger brands like Rantac and
Metrogyl by launching line extensions.
Contrast Media – Strong growth driver:
It’s among the top three in India in this domain. It manufactures and markets these
products under its own brand name in India and internationally. In India, it has
a field force of 30 which calls on hospitals and radiologists. With the objective
of enhancing brand equity, it has also been acquiring technology and in-licensing
products for critical unmet needs. Apart from enhancing focus on tenders, it plans
to get into backward integration to check the hike in RM cost due to currency fluctuations.
Focus shifts to US and ROW from CIS:
Exports are as critical a component as domestic sales for the company. Prior to
the exit in FY’12, sale of OTC products in the CIS market was a key growth driver.
Though highly profitable, it consisted sizable expenditure and was working capital
intensive. Taking the long term into consideration, it decided to shift focus to
the ethical markets of US and rest of the world. The transition has been smooth
as ROW sales (ex CIS) grew by 36% to Rs 221 crores during FY’13. US sales grew by
44% in dollar terms to $10mn, while that in other markets like Australia, RSA, Asia
and Middle East also fared well. Apart from generics, site transfer (for MNCs),
OTC and lozenges were the other segments that posted a good growth.
Expanding ANDA’S portfolio:
It manufactures APIs like Atenolol USP, Clinidipine, Diclofenac acid (US DMF) and
its salts Nifedipine USP (US DMF) and Gadopentatic acid. This clearly shows the
harmony it has with the core business (primarily domestic dosages, radioactive biz
and ROW exports). It filed three ANDAs during FY’13 and intended to file six ANDAs
during FY’14. During October 2013, it got approval for Tinidazole tabs 250mg and
500mg. This product is expected to be launched during Q4FY’14. The company expects
more approvals during the year. The four products in the market during FY’12 viz.,
Atenolol, Cetrizine, Ciprofloxacin and Diclofenac DR tabs (all strengths of 25mg,
50mg and 75mg) achieved sales of $7mn. In the same year, it signed a site transfer
contract with a leading South African company for the supply of a range of drops/injectables.
It plans to scale up a few more products (primarily import substitutes) for sale
and captive use.
Sales in Russia-CIS stood at Rs 100 crores during FY13. It’s making investments
to recover the earlier base prior to sale of the OTC biz. This includes identifying
new products to fill therapy gaps. It plans to scale up the supply biz with Cilag
GmbH and is expecting other biz opportunities from the tie-up. Meanwhile, new formulations
are being developed for angina and cholesterol reduction for the Asian markets.
For the South African markets, it has a JV. The venture recently acquired 50 dossiers
and the veterinary biz of a leading Canadian pharma company. These steps will drive
growth and margins for the company as most of these products would be outsourced
A mid-sized player in the domestic dosages industry with a rank of 36. Rantac, Rantac
D, Metrogyl, Nor Metrogyl and Nicardia Retard feature in the top 300 brands sold
unit-wise. It has a multi pronged strategy for driving growth. During FY’12, only
Rantac and Nicardia featured in the top 300, indicating the focus on the GI segment
among the legacy therapies. Expertise in lozenges manufacture gives it an edge in
the International markets, especially in the OTC segment of EMs. While it sold the
OTC biz of Russia in 2011, it still supplies the dosages to the buyer and has been
focusing on the prescription based business.