Let’s dig deeper into Strides Pharma Analysis of 2020 Annual Report.
- Develop and market niche generic formulations across several dosage formats | 124 ANDAs filed (38 pending approval)
- Among the world’s leading soft gelatin capsule manufacturers.
- Debt Repaid during the year: 1374crs | Total debt: 1020crs
- Weak operating cash flow: 35- 40% conversion (Improving)
- Capex of 130crs.
- 5 USFDA approved plants | 8 Manufacturing plants
- located in India [Bengaluru (two), Puducherry, and Chennai], the US, Singapore, Italy and Kenya.
- Significantly affected due to withdrawal of all Prescription & OTC Ranitidine drugs from the US market: written off the inventory, and along with the withdrawal cost. Here‘s the timeline:
Existing US Portfolio:
- 151 products | $23.9B opportunity (FOCUS: Regulated Markets)
- Expect to file 12-15 ANDAs & approved numbers on similar lines | During the year, filed 4 new ANDAs for the US market and received 7 product approvals.
- Focus is to grow market share in commercialised products.
- US FDA approved plant acquired in Florida, USA.
- Acquired 18 ANDAs from Pharmaceutics International, Inc. for the US market (US$2.5 Billion market opportunity)
On Puducherry OAI:
“We received a warning letter in July 2019. This event has cast a blemish on our otherwise exemplary track record in having successful outcome from inspections.” ~ Mr Arun Kumar, Founder & Non-executive director
“We now await information from the US FDA on re-inspection. We do not take this lightly. There can be no room for complacency when it comes to quality compliance.” ~ Dr R Ananthanarayanan, MD & CEO
Accepting one’s mistake is a sign of character.
Other Regulated Markets:
- Momentum continues in the front-end-led markets of the UK, Australia, South Africa and Canada | 20 new product fillings.
- Acquired a strategic stake in Fairmed Healthcare AG in Europe, thereby gaining a strong foothold in Germany, Austria and Switzerland (DACH region)
Institutional tender business:
- Shifted key products in the institutional business from India to our manufacturing site in Nairobi, Kenya, for an ‘In Africa for Africa’ market play.
- R&D spend is 3% of sales | 225+ scientists
Strides Pharma Concall Summary by Trendlyne:
- Announced our re-entry into the sterile injectables segment with an incremental investment of ~US$40 Million in Stelis Biopharma: controls 48% of the company & will increase it to controlling stake.
- 3 Segments of Stelis: biopharmaceuticals products, Contract Organisation (CDMO) and biologics services and CMO operations for sterile injectables. Paving the growth from FY23 & onwards:
- Top Investments that have High Future Potential: Consumer Healthcare & Stelis (Invested 90crs in FY20)
- Segments to focus on global speciality medicines: Oncology, Autoimmune
- 2608 employees, % increase in median remuneration is -5% while KMP had a high salary increase:
- Promoter Shareholding: 31.24% | 51% of shares Pledged (expected to go down as the Sequent- Carlyle deal takes place)
- Institutional shareholders which increased stake; contains the likes of LIC
- High Contingent liabilities, Although decreasing.