Showing posts with label Shasun Pharma. Show all posts
Showing posts with label Shasun Pharma. Show all posts
25 March 2012
Shasun board okays preferential allotment to Caduceus Mauritius::Business Line
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Shasun Pharmaceuticals has announced that the extraordinary general meeting of shareholders has approved the preferential allotment to Caduceus Mauritius Asia Ltd, a wholly-owned subsidiary of OrbiMed Asia Partners. The company will allot 65,78,947 equity shares at Rs 76 a share, aggregating Rs 50 crore.
Mr Abhaya Kumar, Managing Director of Shasun said, “This investment reflects the confidence of a global healthcare fund in the fundamentals of Shasun and its prospects. We are confident that their global expertise of over two decades in the health care sector will benefit Shasun over the long term.”
Dr Sunny Sharma, Managing Director of OrbiMed Advisors India, said, “Shasun has a long history of partnering with top pharmaceutical companies…We look forward to working with Abhaya and his team towards continued growth…”
Malabar Capital Advisors was the financial advisor to Shasun on this transaction.
Through the issue, Shasun plans to raise long-term funds to part finance its capital expenditure and long-term working capital requirements.
The holding of financial institutions, banks and mutual funds will come down to 14.57 per cent from 16.54 per cent. Public shareholding will come down to 27.69 per cent from 31.44 per cent.
Caduceus is the investment arm of Orbited, a US-based private equity fund focused on the healthcare sector. OrbiMed's earlier investments are in Bharat Serums and Vaccines and Ecron Acunova, a Manipal group-owned clinical research organisation. India Equity Research Reports, IPO and Stock News
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14 January 2012
SHASUN PHARMA:: Fairwealth Investment Ideas 2012
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SHASUN PHARMA
Shasun Pharma (Shasun) is engaged in manufacturing active pharmaceutical
ingredients (APIs), their intermediates and enteric coating excipients with a
significant presence in some key generics. Shasun has created a strong product
portfolio, building on its R & D Expertise, regulatory capabilities and multi scale
production capacities. Today, Shasun is one of the largest producers of Ibuprofen
worldwide. The company offers derivatives of Ibuprofen like Ibuprofen Sodium,
Ibuprofen Lysinate and S+Ibuprofen. It is also one of the major producers of
Ranitidine and Nizatidine in the world. Its products are exported to countries
across North America, Europe, Asia and Latin America.
Investment Rationale
We expect that Rhodias performance will improve significantly on back of
incremental supplies to Vertex over the next few quarters as the volume ramp up
starts for Incivek and batch supplies get replaced with bulk orders.
Incivek commands more than 70% market share with one of the strongest
launches within Pharma industry. Shasun Pharma stands to gain significantly as it
has an assured contract from Vertex (Marketing rights for North America) for
70% of its global requirement of API. We think the strong set of revenue of drug
would reflect in subsequent quarter earnings for Shasun UK.
Management has recently highlights strong growth prospects with 40-50%
revenue growth and profitability to triple in FY12. The company plans to reduce
its debt from 330 Cr to 220 Cr with majority of it being repaid through internal
accruals by the end of this financial year.Further the improvement in business
fundamentals led by series of initiatives like expansion of capacities and launch of
new products augur well for the future.
We maintain a positive outlook on the stock due to supplies for telaprevir to
vertex, increased focus on high margin APIs and various expansion drives.
Valuations
The stock has come under pressure due to steep rupee depreciation which would
lead to Market to market losses on company’s forward contract We believe going
forward the company is a candidate for re-rating due to high potential growth with
majority of earning accruing from UK subsidiary. At the CMP the stock is trading
at 8.4x for FY11P/E. We recommend BUY with a target price of Rs 90.
India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details �� ��
SHASUN PHARMA
Shasun Pharma (Shasun) is engaged in manufacturing active pharmaceutical
ingredients (APIs), their intermediates and enteric coating excipients with a
significant presence in some key generics. Shasun has created a strong product
portfolio, building on its R & D Expertise, regulatory capabilities and multi scale
production capacities. Today, Shasun is one of the largest producers of Ibuprofen
worldwide. The company offers derivatives of Ibuprofen like Ibuprofen Sodium,
Ibuprofen Lysinate and S+Ibuprofen. It is also one of the major producers of
Ranitidine and Nizatidine in the world. Its products are exported to countries
across North America, Europe, Asia and Latin America.
Investment Rationale
We expect that Rhodias performance will improve significantly on back of
incremental supplies to Vertex over the next few quarters as the volume ramp up
starts for Incivek and batch supplies get replaced with bulk orders.
Incivek commands more than 70% market share with one of the strongest
launches within Pharma industry. Shasun Pharma stands to gain significantly as it
has an assured contract from Vertex (Marketing rights for North America) for
70% of its global requirement of API. We think the strong set of revenue of drug
would reflect in subsequent quarter earnings for Shasun UK.
Management has recently highlights strong growth prospects with 40-50%
revenue growth and profitability to triple in FY12. The company plans to reduce
its debt from 330 Cr to 220 Cr with majority of it being repaid through internal
accruals by the end of this financial year.Further the improvement in business
fundamentals led by series of initiatives like expansion of capacities and launch of
new products augur well for the future.
We maintain a positive outlook on the stock due to supplies for telaprevir to
vertex, increased focus on high margin APIs and various expansion drives.
Valuations
The stock has come under pressure due to steep rupee depreciation which would
lead to Market to market losses on company’s forward contract We believe going
forward the company is a candidate for re-rating due to high potential growth with
majority of earning accruing from UK subsidiary. At the CMP the stock is trading
at 8.4x for FY11P/E. We recommend BUY with a target price of Rs 90.
04 November 2011
Buy Shasun Pharma: Strong Sales for Incivek to drive ::Globe
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Strong Sales for Incivek to drive Shasun UK
profitability
Vertex Pharma reported September quarter result ahead of
expectation. Vertex reported Sales of US659 million out of
which $420 million in net product revenue from Incivek sales in
North America (first full quarter since launch).The market
consensus was US$ 450 mn sales in H2CY11 which it achieved
in one quarter. During the quarter, Vertex launched Incivek in
Canada whereas it has received approval in Europe and Japan.
The drug is marketed by Janssen in Europe and currently
available in UK, France, Germany and Sweden. More than
17,000 people have started treatment with INCIVEK since
launch (market consensus was 17000 patients for
H2CY11).Incivek commands more than 70% market share with
one of the strongest launches within Pharma industry. Shasun
Pharma stands to gain significantly as it has an assured contract
from Vertex (Marketing rights for North America) for 70% of its
global requirement of API. We think the strong set of revenue of
drug would reflect in subsequent quarter earnings for Shasun
UK. Shasun UK has spare capacity to produce for next 2-3 years
without any capacity expansion thus leading to huge free cash
flows.
Outlook & Valuation
Management has recently highlights strong growth prospects
with 40-50% revenue growth and profitability to triple in FY12.
The company plans to reduce its debt from 330 Cr to 220 Cr
with majority of it being repaid through internal accruals by the
end of this financial year. We believe going forward the company
is a candidate for re-rating due to high potential growth with
majority of earning accruing from UK subsidiary. Shasun UK
total launched product portfolio has increased to 27 with prelaunch
pipeline of 16 live projects spanning clinical phase II and
III. On 7th October 2011, the company has passed a resolution
to issue 15, 00,000 warrants to Promoter group thus reinforcing
the confidence in company prospects. At the CMP, The stock
trades at P/E of 4.06x and 3.08x FY12E and FY13E
respectively. The sustainability of API agreement coupled with
strong product pipelines provides a huge upside and re-rating for
the stock. We expect the company to post EPS of Rs. 15.45 and
Rs. 20.40 for FY12E and FY13E respectively. We maintain our
BUY rating on the stock with a target price of Rs. 150. The
stock has come under pressure due to steep rupee
depreciation which would lead to Market to market losses
on company’s forward contract.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Strong Sales for Incivek to drive Shasun UK
profitability
Vertex Pharma reported September quarter result ahead of
expectation. Vertex reported Sales of US659 million out of
which $420 million in net product revenue from Incivek sales in
North America (first full quarter since launch).The market
consensus was US$ 450 mn sales in H2CY11 which it achieved
in one quarter. During the quarter, Vertex launched Incivek in
Canada whereas it has received approval in Europe and Japan.
The drug is marketed by Janssen in Europe and currently
available in UK, France, Germany and Sweden. More than
17,000 people have started treatment with INCIVEK since
launch (market consensus was 17000 patients for
H2CY11).Incivek commands more than 70% market share with
one of the strongest launches within Pharma industry. Shasun
Pharma stands to gain significantly as it has an assured contract
from Vertex (Marketing rights for North America) for 70% of its
global requirement of API. We think the strong set of revenue of
drug would reflect in subsequent quarter earnings for Shasun
UK. Shasun UK has spare capacity to produce for next 2-3 years
without any capacity expansion thus leading to huge free cash
flows.
Outlook & Valuation
Management has recently highlights strong growth prospects
with 40-50% revenue growth and profitability to triple in FY12.
The company plans to reduce its debt from 330 Cr to 220 Cr
with majority of it being repaid through internal accruals by the
end of this financial year. We believe going forward the company
is a candidate for re-rating due to high potential growth with
majority of earning accruing from UK subsidiary. Shasun UK
total launched product portfolio has increased to 27 with prelaunch
pipeline of 16 live projects spanning clinical phase II and
III. On 7th October 2011, the company has passed a resolution
to issue 15, 00,000 warrants to Promoter group thus reinforcing
the confidence in company prospects. At the CMP, The stock
trades at P/E of 4.06x and 3.08x FY12E and FY13E
respectively. The sustainability of API agreement coupled with
strong product pipelines provides a huge upside and re-rating for
the stock. We expect the company to post EPS of Rs. 15.45 and
Rs. 20.40 for FY12E and FY13E respectively. We maintain our
BUY rating on the stock with a target price of Rs. 150. The
stock has come under pressure due to steep rupee
depreciation which would lead to Market to market losses
on company’s forward contract.
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