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Elder Pharma
New launches to drive future growth
Mr. Rajesh Kumar Sharma – Dy. General Manager, Finance and Mr.
Reetabrata – Manager, Investor Relations shared their outlook on the
industry and the company
Key Highlights
§ The Company raised Rs619mn by way of QIP and Rs1.92bn through NCDs in two
tranches of Rs1.18bn and Rs730mn on 23rd Dec 2010 and 31st March 2011
§ Elder acquired 100% stake in UK based Nutraceutical company NutraHealth PLC UK
in November 2010 for GBP 9.8mn to access multiple Nutrition brands in UK and to
establish footprint in Regulated markets
§ Company enhanced the stake in Biomeda, Bulgaria to 92.2% by acquiring additional
stake of 31.2% with an investment of Rs400mn. Company is further planning
investment of Rs220mn in its facilities and making them EU compliant
§ In the Indian market the company is known for its shelcal brand Rs1.44bn brand),
which is 23rd largest brand in the Indian pharma market with ~25% market share.
This brand is a part of women’s healthcare portfolio (contributes 23% to domestic
sales, clocked 22% FY10-11 growth) – other brands in this category are Deviry, BLong
and Hormorin
§ In the pain management segment – Chymoral and Chymoral Plus (Rs650mn brand),
Tantum (Rs55mn brand) and Clotan (Rs17mn brand). Chymoral is a market leader in
its segment and has a robust 86% market share
§ Launched the brand “Carnisure” in CVS category which has achieved Rs174 mn
revenue in the first year of launch. The other supporting brands include Somazina
(Rs216mn), Hibor (Rs42mn) are also gaining traction
§ Going ahead – Elder Pharma is planning to foray into the growing and lifestyle
healthcare sector including hypertension, diabetes and Cardiac care
§ The company is also planning to spend up to Rs550mn in next 2 years for increasing
sales force, updating its R&D facilities and for brand building exercises. Total field
force strength as on date stands at 2500
§ Elder Pharmaceuticals will launch 12 new products this fiscal in the areas of
gynecology, pain management and nutraceuticals
§ The newly launched Vitamin D drug under the name of D-360 is expected to boost
sales in this therapy in the coming quarters
Valuations
At current price, the stock trades at 12x FY11 EPS of Rs31 and 17X FY11 EV/EBITDA.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Elder Pharma
New launches to drive future growth
Mr. Rajesh Kumar Sharma – Dy. General Manager, Finance and Mr.
Reetabrata – Manager, Investor Relations shared their outlook on the
industry and the company
Key Highlights
§ The Company raised Rs619mn by way of QIP and Rs1.92bn through NCDs in two
tranches of Rs1.18bn and Rs730mn on 23rd Dec 2010 and 31st March 2011
§ Elder acquired 100% stake in UK based Nutraceutical company NutraHealth PLC UK
in November 2010 for GBP 9.8mn to access multiple Nutrition brands in UK and to
establish footprint in Regulated markets
§ Company enhanced the stake in Biomeda, Bulgaria to 92.2% by acquiring additional
stake of 31.2% with an investment of Rs400mn. Company is further planning
investment of Rs220mn in its facilities and making them EU compliant
§ In the Indian market the company is known for its shelcal brand Rs1.44bn brand),
which is 23rd largest brand in the Indian pharma market with ~25% market share.
This brand is a part of women’s healthcare portfolio (contributes 23% to domestic
sales, clocked 22% FY10-11 growth) – other brands in this category are Deviry, BLong
and Hormorin
§ In the pain management segment – Chymoral and Chymoral Plus (Rs650mn brand),
Tantum (Rs55mn brand) and Clotan (Rs17mn brand). Chymoral is a market leader in
its segment and has a robust 86% market share
§ Launched the brand “Carnisure” in CVS category which has achieved Rs174 mn
revenue in the first year of launch. The other supporting brands include Somazina
(Rs216mn), Hibor (Rs42mn) are also gaining traction
§ Going ahead – Elder Pharma is planning to foray into the growing and lifestyle
healthcare sector including hypertension, diabetes and Cardiac care
§ The company is also planning to spend up to Rs550mn in next 2 years for increasing
sales force, updating its R&D facilities and for brand building exercises. Total field
force strength as on date stands at 2500
§ Elder Pharmaceuticals will launch 12 new products this fiscal in the areas of
gynecology, pain management and nutraceuticals
§ The newly launched Vitamin D drug under the name of D-360 is expected to boost
sales in this therapy in the coming quarters
Valuations
At current price, the stock trades at 12x FY11 EPS of Rs31 and 17X FY11 EV/EBITDA.
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