All focus on Shasun amalgamation… Strides Arcolab :: ICICI Securities, pdf link

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All focus on Shasun amalgamation…
Strides reported its abridged Q2FY15 consolidated numbers. Revenues
grew 19% YoY to | 292 crore. EBITDA margins improved 600 bps to 22%.
The growth in both revenues and EBITDA was attributable to growth in
emerging markets and launch of niche products in the US and Europe.
Sales from regulated markets, emerging markets and institutional
business contributed 37%, 35% and 28%, respectively, during the
quarter. Post the announcement of the Shasun amalgamation, the results
are a kind of formality and the focus now shifts to the amalgamated entity.
As the formalities will take some time to materialise (appointed month
April 2015, closure month June 2015), we will build the future estimates
of the amalgamated entity once the accounts are made public. The stock
will remain Under Review till then.
Recent developments: management estimates on amalgamation
• The boards of Strides and Shasun Pharmaceuticals approved the
proposed amalgamation of the two companies in September
• Pursuant to the scheme of arrangement, each equity shareholder of
Shasun will be entitled to receive five equity shares of Strides for
every 16 equity shares held by him in Shasun
• In the proposed merged entity, the Strides shareholders will have
74% stake while Shasun shareholders will hold the rest
• Hypothetically, the merged entity had revenues of | 2480 crore and
EBITDA of | 378 crore as of June 30, 2014
• Segment break-up of ‘would be’ combined entity- APIs- 31%,
regulated market formulations - 26%, institutional business - 18%,
CRAMs 13% and emerging market formulations - 12%
• Geography wise break-up - emerging markets - 28%, Europe - 22%,
America - 21%, global institutional sales - 18%. Asia Pacific - 7% and
others - 4%
• ANDA filings of combined entity with the USFDA - 160+18 (PEPFAR).
• Infrastructure for the combined entity - three USFDA approved
formulation plants, two USFDA approved API facilities, one USFDA
approved CRAMs facility (UK based) and six emerging market
facilities

LINK
http://content.icicidirect.com/mailimages/IDirect_StridesArcolab_QC_Nov14.pdf