MIRA
INFORM REPORT
|
Report Date : |
27.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
NICHOLAS PIRAMAL INDIA LIMITED |
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Registered Office : |
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Country: |
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Financials (as on): |
31.03.2007 |
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Date of Incorporation : |
26.04.1947 |
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Com. Reg. No.: |
11-5719 |
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CIN No.: [Company
Identification No.] |
U24110MH1947PTC005719 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
MUMN07675D |
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PAN No.: [Permanent
Account No.] |
AAACN4538P |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers of tablets, capsules, liquids, powders, creams & ointments, granules, bulk drugs & intermediates, vitamin A in various forms and combinations, sodaline and borosilicate and also glass manufacturers. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
RATING
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STATUS |
PROPOSED
CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution
needed for credit transaction. It has above average (strong) capability for
payment of interest and principal sums |
Large |
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Maximum Credit Limit : |
USD 422556 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed pharmaceutical company having fine track. Directors are reported as well known industrialists. Their trade relations are fair. General financial position of the company is good. Business is active. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings. |
LOCATIONS
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Registered Office : |
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Head Office : |
100, Centrepoint, |
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Tel. No.: |
91-22-66636666/24134653/24102082 |
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Fax No.: |
91-22-24163787/24172861/24163787/24144687 |
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E-Mail : |
spiramal@giasbm01.vsnl.net.in / spiramal@giasbm01.vsnl.net.in
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Website : |
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Administrative Office : |
Morarjee Mills Compound, Administrative Building, |
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Tel. No.: |
91-22-66636666 |
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Fax No.: |
91-22-66636416 |
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E-Mail : |
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Plant Locations : |
Overseas: subject Pharmaceuticals (
Torcan Chemical Limited ( |
DIRECTORS
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Name : |
Mr. Ajay G. Piramal |
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Designation : |
Chairman |
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Age : |
48 Years |
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Qualification : |
B.Sc, M.M.S., A.M.P. |
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Date of Joining : |
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Experience : |
26 Years |
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Last Employment and Position Held : |
Morarjee Goculdas Spring and weaving. Company Limited as Chairman and Managing Director |
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Name : |
Mr. C. M. Hattangdi |
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Designation : |
Director |
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Name : |
Mr. Y. H. Malegam |
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Designation : |
Director |
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Name : |
Mr. Rajesh Khanna |
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Designation : |
Director |
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Name : |
Mr. G. P. Goenka |
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Designation : |
Director |
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Name : |
Dr. William Jenkins |
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Designation : |
Director |
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Name : |
Ms. Urvi A. Piramal |
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Designation : |
Director |
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Name : |
Mr. Harsh Piramal |
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Designation : |
Director |
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Name : |
Mr. R. A. Shah |
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Designation : |
Director |
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Name : |
Mr. Vijay Shah |
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Designation : |
Director &
Chief Operating Officer |
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Age : |
47 years |
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Qualification : |
B.Com., F.C.A.
AMP (Harvard) |
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Date of Joining : |
14.12.1887 |
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Experience ; |
24 years |
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Last Employment and Position Held : |
Management Structure
and Systems Private Limited- Sr. Consultant |
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Name : |
Mr. M. R. Shroff |
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Designation : |
Director |
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Name : |
Mr. N. Vaghul |
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Designation : |
Director |
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Name : |
Mr. S. Venkitaramanan |
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Designation : |
Director |
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Name : |
Mr. Deepak Satwalekar |
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Designation : |
Director |
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Name : |
Mr. S. Ramadorai |
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Designation : |
Director |
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Name : |
Dr. (Mrs.) Swati A. Piramal |
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Designation : |
Director-Alliances
and Communications & Chief Scientific Officer |
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Age : |
49 Years |
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Qualification : |
M.B.B.S, D.I.M.,
M.P.B. (Harvard) |
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Date of Joining : |
01.10.1994 |
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Experience ; |
24 Years |
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Last Employment and Position Held : |
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Name : |
Mr. Keki Dadiseth |
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Designation : |
Director |
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Name : |
Mr. Michael
Fernandes |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Leonard D'Souza |
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Designation : |
Company Secretary |
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Management Committee: |
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Name : |
Mr. Harsh Piramal |
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Designation : |
Chief Operating
Officer |
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Age : |
30 Years |
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Qualification : |
B.Sc., MBA |
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Date of Joining : |
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Experience : |
6 Years |
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Last Employment and Position Held : |
Indocean Chase as
Analyst |
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Name : |
Mr. N Sanathanam |
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Designation : |
Group President –
Finance and Legal and Chief Financial Officer |
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Age : |
56 Years |
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Qualification : |
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Date of Joining : |
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Experience : |
32 Years |
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Last Employment and Position Held : |
The Bombay Dyeing
and Manufacturing Company Limited as Group Senior ice President (Corporate
Affairs) |
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Name : |
Mr. Shreekant
Gupte |
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Designation : |
Director |
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Name : |
Dr. Somesh Sharma |
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Designation : |
Chief Scientific
Officer |
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Age : |
60 Years |
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Qualification : |
Ph.D. |
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Date of Joining : |
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Experience : |
27 Years |
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Last Employment and Position Held : |
Monoclonal
Antibody and Vaccine Business Unit, Anosys Inc. |
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Name : |
Mr. Ananthanarayanan R. |
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Designation : |
President – international Operations |
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Name : |
Mr. Asaikar Umesh |
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Designation : |
President – international Operations |
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Name : |
Mr. Athreya Shankar |
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Designation : |
Senior Vice President, Strategic Investments (M&A) |
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Name : |
Mr. Bansi Lal |
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Designation : |
President-Quest, |
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Name : |
Mr. Bhatia Satish C. |
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Designation : |
President – Clinical Research and Regulatory Affairs |
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Name : |
Mr. Chawla Harish |
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Designation : |
Chief Information Officer |
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Name : |
Mr. Gad Narayan B. |
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Designation : |
President – Marketing and Sales, Multi speciality and Extra Care Division |
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Name : |
Mr. Iyer Bhasker |
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Designation : |
President – Sales and Marketing, Cardex Division |
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Name : |
Mr. Iyer Sainath |
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Designation : |
President – Marketing Actis Division[ |
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Name : |
Mr. Kamath V.P. |
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Designation : |
Senior Vice President – Biotek Division |
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Name : |
Mr. Mahadevan Ajit |
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Designation : |
Vice President – Group Strategic Planning |
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Name : |
Mr. Mukhopadyaya T |
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Designation : |
Vice President – Research |
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Name : |
Mr. Oke Vidyadhar G. |
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Designation : |
President – Medical Services |
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Name : |
Mr. Piramal Ajay G. |
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Designation : |
Chairman |
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Name : |
Mr. Saigal J C |
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Designation : |
Executive Director (International) Bulk Drugs Division |
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Name : |
Mr. Sengupta S.S. |
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Designation : |
C.E.O. – S.P.Division |
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Name : |
Mr. Shah Vijay |
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Designation : |
Chief Operating Officer |
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Name : |
Mr. Singh Praneet |
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Designation : |
Director – Formulations |
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Name : |
Verma Rajiv |
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Designation : |
Vice President – Operations Bulk Drugs |
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Name : |
Mr. Michael Fernandes |
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Designation : |
Director |
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Name : |
Mr. Praneet Singh |
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Designation : |
Director |
MAJOR SHAREHOLDERS
According to categories of Equity Shareholders as
on 31st March, 2007.
|
Names of Shareholders |
No. of Shares |
|
Shareholding of
Promoter and Promoter Group Public shareholding |
10,46,98,447 |
1 Institutions
|
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(a) Mutual
Funds/ UTI |
25,67,501 |
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(b) Financial
Institutions / Banks |
50,063 |
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(c) Insurance Companies |
1,25,48,474 |
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(d) Foreign
Institutional Investors |
3,00,24,252 |
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2 Non-Institutions |
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(a) Bodies
Corporate |
3,37,18,198 |
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(b) Individuals |
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(i) holding nominal share capital up to
Rs 0.001 million |
2,40,10,046 |
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(ii) holding nominal share capital in
excess ofRs. 0.001 million |
13,96,152 |
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Total |
20,90,13,133 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of tablets, capsules, liquids, powders, creams & ointments, granules, bulk drugs & intermediates, vitamin A in various forms and combinations, sodaline and borosilicate and also glass manufacturers. |
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Products with ITC No.: |
·
Phensedyl-
300440 ·
Paraxin-300310 ·
Haemaccel-300310 Ř Formulations Ř Diagnostics and Patient Care Ř Vitamins Ř
Product Finder |
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Brand Names : |
Ř
Anti-Infectives · Paraxin · Bactrim · Genticyn · Omnatax Ř Cardio- Vasculars · Sorbitrate · ISMO · Enace-D · Calaptin · Cytogard · Bezalip Ř Nutritionals · Becozym C Forte · Supradyn · Redoxon · Exerge Ř Respiratory · Deletes Ř Others · Haemaccel Ř
Anti-Diabetics ·
Euglucon ·
Semi-Euglucon ·
Glimmer ·
Gluformin ·
Diabetrol Ř CNS ·
Rivotril ·
Librium ·
Valium ·
Assert Ř NASID’s · Rejoint · Orthobid · Micropyrin · Multigesic Ř Biotek · Recormon · Neupogen · Cellecept |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Trade |
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Creams and powder |
Kgs |
-- |
-- |
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Vials |
Ltrs |
-- |
-- |
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Tablets and capsules |
Mios |
-- |
-- |
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Liquids, drops and solutions |
Ltrs |
-- |
-- |
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Manufactured |
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|
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Tablets |
Mios |
11495.0 |
4974.8 |
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Capsules |
Mios |
580.0 |
330.6 |
|
Liquids |
KLs |
26147.4 |
9877.7 |
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Powders, creams and ointments |
MTs |
|
67.3 |
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Bulk drug and intermediates |
MTs |
1696.2 |
1415.6 |
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Vitamin A in various forms and combinations |
mmu |
276.0 |
180.4 |
GENERAL INFORMATION
|
Trade terms with : |
· Adams Fine Chemicals Private Limited · Patel Papain Industries · Supreem Pharmaceuticals · Seasons Polymers · Vasant Process · Ansa Printpack Private Limited |
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No. of Employees : |
6812 |
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Bankers : |
· Allahabad Bank · Deutsche Bank · Corporation Bank ·
Bank of · Citibank N.A. · HDFC Bank · Standard Chartered Bank · Calyon Bank · UTI Bank · IDBI Bank ·
State Bank of · ICICI Bank Limited · ING Vysya Bank Limited · The Hong Kong & Shanghai Banking Corporation Limited |
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Facilities : |
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Banking Relations
: |
Good |
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Auditors : |
Price Waterhouse Chartered Accountants Mumbai, |
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Associates: |
·
Allergan
India Private Limited (Allergan) ·
Boots
Piramal Healthcare Private Limited (Boots) ·
Morarjee
Realties Limited (Formerly The Morarjee Goculdas Spg. & Wvg. Co. Limited)
(Morarjee Realties) ·
Morarjee
Textiles Limited (Morarjee Textiles) ·
Morarjee
Castiglioni ( ·
Piramal
Healthcare Private Limited (Piramal Healthcare) ·
Piramal
Enterprises Limited (Piramal Enterprises) ·
Piramal
Holdings Limited (Piramal Holdings) ·
Thundercloud
Technologies ( ·
Piramyd
Retail and Merchandising Private Limited · The Swastik Safe Deposits and Investments Limited |
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Membership: |
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Subsidiaries : |
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Solicitors : |
· Crawford Bayley and Company |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25,00,00,000 |
Equity Shares |
Rs.2/- |
Rs. 500.000 millions |
|
30,00,000 |
Preference Shares
|
Rs.100/- |
Rs. 300.000 millions |
|
2,40,00,000 |
Preference Shares
|
Rs. 10/- |
Rs. 240.000 millions |
|
10,50,00,000 |
Unclassified
Shares |
Rs. 2/- |
Rs. 210.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
209013133 |
Equity Shares of |
Rs.2/- |
Rs. 418.000 millions |
|
15,00,000 |
5% Cumulative Redeemable Preference Shares |
of Rs. 100/- each |
Rs. 150.000 millions |
|
|
Preference shares are redeemable on the expiry
of 5 years from the Appointed Date October 1,2003, with an option for the
Company for early redemption, but not before March 31,2005 |
|
|
|
2,33,72,280 |
5% Cumulative Redeemable Reference Shares of |
Rs, 10/- each |
Rs. 233.700 millions |
|
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Preference
shares are redeemable on the expiry of 5 years from the Appointed Date December
01, 2003, with an option for the Company for early redemption, but not before
March 31, 2005 |
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Total |
|
Rs.
801.700 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
801.700 |
951.700 |
913.700 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9762.200 |
8742.900 |
4543.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10563.900 |
9694.600 |
5456.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1793.300 |
1620.500 |
3092.200 |
|
|
2] Unsecured Loans |
2168.800 |
312.000 |
448.900 |
|
|
TOTAL BORROWING |
3962.100 |
1932.500 |
3541.100 |
|
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DEFERRED TAX LIABILITIES |
1033.600 |
858.500 |
768.600 |
|
|
|
|
|
|
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TOTAL |
15559.600 |
12485.600 |
9766.400 |
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
8701.500 |
6752.400 |
5827.500 |
|
|
Capital work-in-progress |
459.700 |
1754.500 |
1051.800 |
|
|
|
|
|
|
|
|
INVESTMENT |
1265.000 |
789.400 |
258.300 |
|
|
DEFERREX TAX ASSETS |
162.100 |
153.000 |
183.300 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2264.800
|
2147.500 |
2746.700 |
|
|
Sundry Debtors |
2298.800
|
1747.500 |
1409.000 |
|
|
Cash & Bank Balances |
220.500
|
109.200 |
74.900 |
|
|
Other Current Assets |
86.500
|
72.900 |
60.800 |
|
|
Loans & Advances |
2677.600
|
1888.500 |
1209.500 |
|
Total
Current Assets |
7548.200
|
5965.600 |
5500.900 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
2328.700
|
2082.700 |
2261.100 |
|
|
Provisions |
248.200
|
846.600 |
794.300 |
|
Total
Current Liabilities |
2576.900
|
2929.300 |
3055.400 |
|
|
Net Current Assets |
4971.300
|
3036.300 |
2445.500 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
15559.600 |
12485.600 |
9766.400 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
16013.800 |
14062.800 |
12760.700 |
|
|
Other Income |
385.000 |
431.600 |
0.000 |
|
|
Total Income |
16398.800 |
14494.400 |
12760.700 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2224.400 |
1842.500 |
2062.900 |
|
|
Provision for Taxation |
341.600 |
139.000 |
367.200 |
|
|
Profit/(Loss) After Tax |
1882.800 |
1703.500 |
1695.700 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
Total Earnings |
0.000 |
2201.500 |
1263.200 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
Total Imports |
0.000 |
1746.400 |
1507.900 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
6683.800 |
5325.300 |
|
|
|
Staff cost |
1857.900 |
1519.100 |
|
|
|
Research and development expenses |
878.900 |
639.300 |
10844.800 |
|
|
Increase/(Decrease) in Finished Goods |
(214.300) |
672.200 |
|
|
|
Other Expenditure |
4154.100 |
3750.900 |
|
|
Total Expenditure |
13360.400 |
11906.800 |
10844.800 |
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
0.29 |
0.36 |
0.70 |
|
Long Term Debt
Equity Ratio |
0.17 |
0.18 |
0.49 |
|
Current Ratio |
1.39 |
1.14 |
1.20 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.67 |
1.83 |
1.90 |
|
Inventory |
7.78 |
6.25 |
5.58 |
|
Debtors |
8.42 |
9.53 |
8.27 |
|
Interest Cover
Ratio |
6.58 |
8.02 |
5.77 |
|
Operating Profit
Margin (%) |
19.53 |
17.82 |
15.01 |
|
Profit Before Interest
and Tax Margin (%) |
15.39 |
13.98 |
11.35 |
|
Cash Profit
Margin (%) |
15.19 |
15.16 |
11.36 |
|
Adjusted Net
Profit Margin (%) |
11.05 |
11.33 |
7.71 |
|
Return on Capital
Employed (%) |
20.05 |
20.39 |
17.53 |
|
Return on Net
Worth (%) |
19.23 |
23.79 |
22.01 |
STOCK PRICES
|
Face Value |
Rs.2/- |
|
High |
Rs.236.00/- |
|
Low |
Rs.231.10/- |
LOCAL AGENCY FURTHER INFORMATION
Fixed
Assets :-
·
Intangible
assets
·
Brand
/ Know- How/ Intellectual Property Rights *
·
Computer
software
·
Tangible
assets
·
Land
leasehold
·
Land
freehold **
·
Building
·
Plant
and machinery
·
Furniture
and fixtures and office equipments
·
Motor
vehicle / transport
* The brands are in the process of being registered in the name of the company, for which the necessary application has been made with trade mark registry
** A part of the land purchased at Baddi and land, building
and motor vehicle purchased at
MANAGEMENT DISCUSSION & ANALYSIS
Was 0.65 In for
the year2007, Compared To 0.38 In for the year2006. The Debt Level And Interest
Costs For for the year2007 Were Higher As They Used Internal Funds And Debt To
Finance Capital Expenditure For The Year And For Acquisition Of Pfizer's
Morpeth Facility.
Depreciation for
the year was Rs. 818.2 million compared to Rs. 688.1 million in for the
year2006.
Income Tax and
Fringe Benefit Tax for for the year2007 was Rs. 388.9 million, compared with
Rs. 238.1 million in for the year2006.
Profit After Tax
after exceptional items (net of tax) was Rs. 2.2 billion in for the year2007 as
compared to Rs. 1.2 billion in for the year2006, registering a growth of
80.7%.
Earnings per share
for for the year2007 were Rs. 10.3 per share vs. Rs. 5.8 per share in for the
year2006, an increase of 77.6%.
Net Sales analysis (Consolidated):
subject's domestic
branded formulations business, which at Rs. 11.7 billion contributed 47.5% of
Total Operating Income, increased 11.9% for the year2006. Global Sales -
growing to 43.1% of Total Operating Income - were Rs. 10.6 billion as compared
to Rs. 3.4 billion for for the year2006.
Change in Reporting Format:
Starting for the year2007,
they have changed the reporting format for global sales to align it with
revenue segments of their global Custom Manufacturing business. The global
sales are now sub-divided into:
1. PDS
(Pharmaceutical Development Services): This includes Process Development
Services for API and Formulations.
2. PMS
(Pharmaceutical Manufacturing Services): This includes commercial-scale Custom
Manufacturing contracts for APIs and Formulations.
3. MMBB
(Marketable Molecules and Building Blocks): This includes off-patent APIs and
Formulations products, Inhalation Anaesthetic products, Vitamin-A products and
other catalogue products.
Vitamins sales in
domestic market are now reported under Custom Manufacturing Operations (CMO)
category in the
Domestic Branded Formulations
Market commentary
and Industry Outlook:
Backed by a strong
growth in GDP, the Indian Pharmaceutical industry experienced a strong growth
rate of 14.3% during the year (ORG IMS MAT March 2007). An important
contributor to industry growth in for the year2007 was the spread of epidemics
such as Dengue and Chickungunya, which led to a sharp increase in sales of
antibiotics and painkillers during the first half of the year. A redeeming
feature of growth during the year was the rise in volumes contributing to bulk
of the 14.3% growth. On the new products front, there has been a fair amount of
innovation by Indian companies in the area of combination therapy. The domestic
pharmaceutical? industry is centered on branded generics, and is intensely
competitive. Top-10 companies account for only 37% of the market. The new
patent regime which came into effect from January 2005 disallows generic copies
of any drug patented after 1995. Given this industry structure, they expect
brands franchise; field force strength and product innovation to be key success
factors in the coming years. Industry studies suggest that modern medicine
still covers less than a third of the population. They believe that coverage
will substantially improve in the coming years because of higher economic
growth and focus of pharmaceutical companies to increase service to semi-urban
and rural areas. If this happens, the domestic pharmaceuticals industry would
continue to grow faster than GDP
Subject
consolidated formulations performance:
During the year,
Subject's domestic branded formulations grew 11.9% in aggregate terms to Rs.
11.7 billion as compared to Rs. 10.5 billion for for the year2006. Launch of
Healthcare division: They have created a new division as a 100% subsidiary
named subject Healthcare Pvt. Ltd., targeting Mass Market Branded Formulations
(MMBF). Currently, they are in a pilot phase. They have recruited 400 people
who will service about 50,000 General Practioners in 12 states.
Portfolio
performance: Joint Ventures & Subsidiaries,
Allergan India
Limited ('AIL'):
AIL is a 51:49
Joint Venture between Allergan Inc.,
Subject Consumer
Products Pvt. Ltd. ('NPCPPL'):
(formerly Boots
Piramal Healthcare Pvt. Ltd.('BPHPL'))
On September 29, 2006,
subject acquired the balance 51.0% equity stake held by The Boots Company Pic,
a subsidiary of Alliance Boots Pic, in the Joint Venture Company, Boots Piramal
Healthcare Private Limited. BPHPEs marketing rights for the btands Strepsils,
Clearasil and Sweetex in
BPHPL has since
become a wholly owned subsidiary of the company and has been renamed as Subject
Consumer Products Pvt. Ltd. (NPCPPL). NPCPPL will continue to actively market
and distribute its own Over The Counter (OTC) products viz. Saridon, Polychrol
and Lacto Calamine. In addition, NPCPPL also plans to launch OTC brands in new
therapy areas as well as transition some of subject's Rx brands to OTC by
leveraging its sales and marketing team.
Net Sales for
NPCPPL for for the year2007 was Rs. 506.1 million, PBIDT was Rs. 34.4 million
and PAT was Rs. 26.7 million.
Core Brand
Analysis:
Sales of top-10
brands was 29.8% of the consolidated total branded formulations sales and that
of the top-30 brands was 55.7% of the total branded formulations sales. Sales
from Lifestyle segment (which include therapy areas of CVS, CNS, Anti-diabetic
and Biotech) contributed to 31.2% of the total branded formulations sales.
Brands portfolio
expansion:
New Products
launch:
Subject launched
22 new products (including extensions) during for the year2007. Sales from new
products (launched during the past 24 months) were Rs. 611.2 million during the
year. Seven new brands have become market leaders in their respective
sub-segments.
DPCO:
Products under the
Drug Price Control Order (DPCO) contributed 14.1% of domestic branded formulations
sales in for the year2007, against 14.5% in for the year2006.
Field Force
(standalone):
Nicholas'
Formulations field force of 2,986 personnel continues to be one of the largest
in the Indian Pharmaceutical industry. They believe their investment in field
force is one of their key strengths. Their vast yet specialized field presence
also adds to their in-licensing attractiveness. Subject now has 14 Divisions,
out of which 7 focus on specific therapies.
Sharper
therapy-wise focus has enabled them to attain high coverage in specialty doctor
segments. Their Multi-specialty Divisions, meanwhile, focus on General
Practitioners and build mass consumption brands and primary care products.
Subject has a
tertiary field layer of two Franchisee Divisions: First division comprising of
116 persons which markets older brands to General Practitioners in semi-urban
and rural areas; and second division comprising of 168 persons that does retail
order booking for big brands.
Global Sales and
Custom Manufacturing Business Group
Market commentary:
The Global Custom
Manufacturing market has shown good growth as large pharmaceutical companies
face rising cost-pressures and patent expiry of block-buster drugs; and are
forced to look at improving manufacturing efficiencies. The market is still in
consolidation mode and the year witnessed a number of merger/acquisition
transactions.
The outsourcing
industry is expected to continue growing faster than global pharmaceuticals industry
over the next 5-7 years, driven by need for increased outsourcing by
pharmaceutical companies. Hitherto, western companies have led the outsourcing
industry. However, it is expected that Asian companies will gain market share
and importance because of their cost advantage and chemistry innovation skills.
The industry might experience consolidation in geographical and value chain
terms, with Asian companies trying to gain customer relationships, while
Western companies try to secure lower-cost manufacturing assets.
Nichoks Piramal
performance:
International
sales grew 214.1%, driven by consolidation of revenues from Avecia and Morpeth.
and higher custom manufacturing revenues from Indian assets. Sales from
contracts from Indian Assets and PDS business out of
Within the MMBB
segment, they successfully shifted production of Inhalation Anesthetic products
from Rhodia
Acquisition of
Pfizer's Facility at
In keeping with
their intent of being a leader in the custom manufacturing space, they have
acquired the manufacturing facility of Pfizer, Inc. located at Morpeth,
Morpeth's team of
about 450 people has rich experience in new product launch, site technical
transfer and operational excellence initiatives such as JIT &
Right-First-Time. Its facilities are approved by USFDA and UKMHRA. Morpeth is a
supply hub for certain Pfizer products supplied to
Turnaround of
Avecia Operations:
They had acquired
Avecia Pharmaceuticals,
Research & Development
program
Research &
Development:
During the year,
their R&D pipeline has shown significant traction. Their lead oncology
molecule P276-00 that was in clinical trials in
During the year,
they signed an agreement with Eli Lilly and Company,
During the year,
Subject entered into a plant-screening agreement with Napo Pharmaceuticals,
Inc.
SUBSIDIARY
COMPANIES:
Pathlabs:
They continued to
build their Pathlabs business by acquiring new laboratories and building
They also entered
in to a 50% joint venture with Doctors Diagnostic & Research Centre (DDRC)
during the year. DDRC is the largest diagnostics network in Kerala with 34 labs
across the state. The new venture will have under its wing some of the most
advanced diagnostic analysis available. The Total Operating Income for Pathlabs
grew by 54.5% from Rs. 449.7 million in for the year 2006to Rs. 695.0 million.
Operating Profit for the year was up by 14.4% to Rs. 118.2 million. However,
acquisition of new labs and setting up
SUBJECT
Pharmaceuticals (
During the year, they
continued to expand their global footprint in the custom manufacturing business
and acquired Pfizer's manufacturing facility at Morpeth which came with a
supply arrangement till November 2011. As a result, the net sales for for the
year2007 for subject Pharmaceuticals (UK) Ltd. Was Rs. 6.3 billion as against
Rs. 748.0 million for for the year2006, Operating profit for the year was Rs.
707.9 million as compared to an operating loss of Rs. 254.0 million and PAT for
the year was Rs. 515.0 million as compared to net loss of Rs. 281.7 million for
for the year2006. The financials however are strictly not comparable on a
like-to-like basis as they did not have revenues from Morpeth facility in for
the year2006, and the revenues from the erstwhile Avecia operation had come
only for four months, in for the year2006.
They were able to
achieve the turnaround of erstwhile Avecia operations during the year. This was
achieved because of the following reasons:
1. Significantly
higher capacity utilization
2. More efficient
procurement of raw materials by Avecia's integration with Indian assets; and
3. Rationalization
of fixed costs
Torcan Chemical
Limited:
Net Sales for for
the year2007 for Torcan was Rs. 1.1 billion as compared to Rs. 311.8 million
for for the year2006, Operating Profit for the year was Rs. 106.1 million as
compared to Rs. 7.0 million for for the year2006, and PAT was Rs. 65.5 million
as compared to a net loss of Rs. 18.7 million for for the year2006.
Note:
The Central
Government has granted exemption under section 212(8) of the Companies Act
1956, from attaching to the Balance Sheet of the Company, the Accounts and
other documents of its subsidiaries. However, the Consolidated Financial
Statements of the Company, which include the results of the said subsidiaries,
are included in this Annual Report. Further, a statement containing the
particulars prescribed under the terms of the said exemption for each of the
Company's subsidiaries is also enclosed. Copies of the audited annual accounts
of the Company's subsidiaries, can also
be sought by any investor of the Company or its subsidiaries on making a
written request to the Company Secretary at the registered office of the
Company in this regard. The Annual Accounts of the subsidiary companies are
also available for inspection tor any investor at the Company's and/ or the
concerned subsidiaries' registered office.
JOINT VENTURES:
Allergan India Limited ('AIL')
AIL is a 51:49
Joint Venture between Allergan Inc.,
Subject Consumer
Products Pvt. Ltd ('NPCPPE)
(formerly Boots
Piramal Healthcare Pvt. Ltd. ('BPHPL'))
On September 29,
2006, subject acquired the balance 51% equity stake held by The Boots Company
PLC, a subsidiary of Alliance Boots pic, in the Joint Venture Company, Boots
Piramal Healthcare Private Limited. BPHPLs marketing rights in the brands
Strepsils, Clearasil and Sweetex in
BPHPL has become a
wholly owned subsidiary of the company and has been renamed as Subject Consumer
Products Pvt. Ltd. (NPCPPL). NPCPPL will continue to actively market and
distribute its own Over The Counter (OTC) products viz. Saridon, Polychrol and
Lacto Calamine. In addition, NPCPPL also plans to launch OTC brands in new
therapy areas as well as transition some of NPILs Rx brands to OTC by
leveraging its sales and marketing team.
Net Sales for
NPCPPL for for the year2007 was Rs. 506.1 million, PBIDT was Rs. 34.4 million
and PAT was Rs. 26.7 million.
INDUSTRY OUTLOOK:
Backed by a strong
growth in GDP, the Indian Pharmaceutical industry has experienced a strong
growth rate of 14.3% (ORG IMS MAT March 2007). An important contributor to
industry growth in for the year2007 was the unfortunate spread of epidemics
such as Dengue and Chickungunya, which led to a sharp increase in sales of
antibiotics and painkillers during the first half of the year. A redeeming
feature of growth during the year was volumes contributing to bulk of the 14.3%
growth. On the new products front, there has been a fair amount of innovation
by Indian companies in the area of combination therapy.
The Global Custom Manufacturing
market has also shown good growth as large pharmaceutical companies face rising
cost-pressures and patent expiry of block-buster drugs and are forced to look
at improving manufacturing efficiencies. The market is still in consolidation
mode and this year saw a number of mergers/acquisitions transactions
PRESS
RELEASE
Nicholas Piramal reports HY-for the year05 results;Sales from continuing
operations up 16.4%, Profit after tax up 34.2% Company's Board approves a
5:1 Stock Split
Mumbai 21 October 2004:Nicholas Piramal India Limited (subject)
registered * a 16.4% growth in Net Sales from
Continuing Operations and a 34.2% growth in Net Profit for the Half-year ended
30 September 2004 (HY-for the year05).
The Company today also announced that it has concluded an agreement for
discontinuation of exclusive distribution of Roche Diagnostic Products in
At Rs. 3,530.5 million, subject Q2-for the year05 Sales grew 11.7% on
continuing business basis. The Company had lower Sales of Roche Diagnostic
products and certain other Roche biotech formulations because of the planned
return to the parent Company.
During Q2-for the year05, Nicholas Piramal continued its drive to improve
product-mix. Gross Contribution improved 14.5%. R&D expenditure more than
doubled to Rs. 118.2 million during the Quarter, in-line with the Company’s
greater focus on research.
Operating Margins improved to 21.7% on better portfolio mix, higher Exports,
and the Diagnostics Sales shrinkage; as did Profit after tax, which grew 7.7%
to Rs. 543.9 million. This resulted in an EPS (not annualized) of Rs. 14.1 per
share, compared with Rs. 13.2 per share in Q2-for the year04.
On a continuing businesses basis, subject’s Domestic Formulations continued to
outperform the market for the tenth consecutive quarter, growing 12.5% against
industry growth rate of 7.7% (ORG-IMS-MAT-Aug-04). Formulations growth -
without excluding the returned Roche Biotech products, was 5.8% during Q2-for
the year05. During the Quarter, subject outperformed therapy area growth in
6-of-10 therapy areas. Performance was particularly strong in Respiratory,
Anti-infective, CVS, Anti-diabetic, GI, and Dermatology segments. Recently,
Strepsils and Saridon have also been selected among the Top-100 Super Brands of
India. subject’s inlicensing strategy also gained momentum during HY-for the
year05 resulting in in-licensing deals with Ethypharm, Genzyme, Pierre Fabre,
and takeover of Dobutrex rights for
Nicholas Piramal’s Exports continued to expand, reaching 11.8% of Net Sales,
for Q2-for the year05 vs. 7.2% in Q2-for the year04. These Exports Sales, at
Rs. 444.1 million, do not yet include any turnover under the AMO
custom-manufacturing contract, which is under implementation and slated to
commence shipment in January 2005.
The Board of Nicholas Piramal, at its meeting today, also approved a 5:1
The results in the press release are on
audited stand-alone basis. Stand Alone Accounts represent results without
considering Joint Venture and Subsidiaries.
Wellquest becomes the first Indian CRO to receive
Statement of GCP Compliance from UK-MHRA
Mumbai 23 August
2004: Wellquest, the independent clinical research division of Nicholas
Piramal India Limited (subject), becomes the first Indian CRO (Clinical
Research Organisation) to receive the Statement of GCP (Good Clinical
Practices) Compliance from the UK-MHRA (Medicines and Healthcare Products
Regulatory Agency), for clinical studies carried out to support the
registration of generic products in the international regulated markets.
While marketing authorization has been given to Pharma companies in the past
based on studies carried out at Wellquest, the GCP Compliance Statement comes
on the heels of a strict facility inspection of Wellquest conducted by the
Speaking about the achievement, Dr. Swati Piramal, Director Strategic Alliances
and Communications at subject, said, “They are poised for rapid growth with
such compliance recognition. This will augur well for Wellquest to provide its
quality services in clinical research to the international pharmaceutical
industry.”
About Wellquest
Established in 2000 by subject as an independent division, Wellquest’s
state-of-the-art facilities occupy 20,000 sq ft of space over four floors of
the
Nicholas Piramal Seals Product In-Licensing Agreement with
Mumbai 16 August 2004: Nicholas Piramal India Limited
(subject) today announced the completion of their product in-licensing
agreement with
subject’s in-licensing deal with
Under the agreement, subject will source raw material from Ethypharm and
manufacture dispersible formulations using the technology at its Pithampur
Plant. Nicholas Piramal will distribute the product in the Indian market under
its own brand name. The Indian market for this segment is estimated to be Rs.
1000.000 millions.
Ethypharm is one of the World's leading drug delivery system (DDS) companies
that provides health scientists with effective solutions to optimize the
delivery of active molecules into the body. The use of Ethypharm's DDS
technologies delivers important benefits including improving the drug's
efficacy, enhancing patient compliance and comfort, extending the life cycles
of existing pharmaceutical products, and reducing the total cost of treatment.
Ethypharm is an established DDS company with capabilities from research through
to manufacturing and has successfully launched 50 products in over 70
countries. RandD activities are also conducted at local facilities in connection
with their operations in
Ethypharm's oral enhanced absorption technologies are designed to optimize the
delivery profile of active ingredients. Ethypharm's innovative technologies
make it possible to improve the solubility and oral absorption of a range of
active molecules, which are vulnerable to more traditional techniques due to
their chemical fragility. These technologies can be used for both the oral and
pulmonary delivery of macromolecules that otherwise could only be administered
through injection. This has obvious benefits such as enhanced patient comfort
and convenience. In addition, the use of oral enhanced absorption technologies
make it possible to lower health care costs by allowing the patients to take
medicines that previously had to be administered by healthcare professionals.
Nicholas Piramal India Limited is one of
Friday July 8, 04:04 PM
BioSyntech, Inc. and Nicholas Piramal India Limited Announce Letter of Intent
By Business Wire
LAVAL, Quebec and MUMBAI, India July 8, 2005 BioSyntech, Inc. (TSX
VENTURE:BSY) has signed a letter of intent with Nicholas Piramal India Limited
("subject"), one of India's leading pharmaceutical companies,
pursuant to which subject will subscribe to 7,500,000 common shares of the
company at a price of C$0.80 per share. subject's post-issue shareholding will
be approximately 17% of issued shares.
Biosyntech, Inc. is a Canada-based biotechnology research company that
specializes in the discovery, development and manufacturing of cost-effective
and physician-friendly biologic implants for therapeutic delivery and
regenerative medicine.
Biosyntech specializes in Gel-based platforms that are liquid at room
temperature and solid at body temperature. The gels are biodegradable, have
porous internal structure and enable easy flow of blood nutrients, cells and
fluids. These gels are minimally invasive and have controlled residence time.
The Company's lead products under advanced development are BST-CarGel(,
BST-DermOn and BST-InPod, which are for cartilage regeneration, wound healing
activation and fat pad reconstruction for heel pain respectively. Biosyntech
has six other products under development for regenerative medicine and therapeutic
delivery platforms.
As part of the arrangement, subject will acquire exclusive rights for
marketing, sales and distribution of current and future products of BioSyntech
for
In addition, the Companies have agreed to explore opportunities to
collaborate for research and development activities with respect to future
products of subject using BioSyntech's technological platforms.
The letter of intent provides that for so long as subject shall be the
registered holder of at least 5,000,000 shares of the company, the board of
directors of BioSyntech shall include representatives of subject in proportion
to its shareholding, Subject to a minimum of one director. In addition, subject
will have proportional pre-emptive rights in the event the company offers
further equity securities. This arrangement, which has been approved by the
board of both companies, is conditional on satisfactory completion of due
diligence, on regulatory approvals and on the signing of definitive agreements.
Commenting this transaction, Mr. Claude LeDuc, CEO of BioSyntech said:
"They are very excited about this collaboration which brings to BioSyntech
significant funding from a committed strategic partner, distribution for its
products in South-East Asia and the possibility to joint venture R&D
activities in
About BioSyntech - BioSyntech is a biotechnology company specializing in
the discovery, development and manufacturing of innovative cost-effective and
physician-friendly advanced therapeutic thermogels for regenerative medicine
and therapeutic delivery. BioSyntech's Quality Management System is registered
to ISO 9001:2000. BioSyntech is listed on the TSX Venture Exchange,
With growth fuelled through a strategy of partnerships, quality
acquisitions, brand building, focused selling and manufacturing, subject's
consolidated net sales were THEM$ 300 million in 2004-05. subject has emerged
among the leaders in Indian pharma with one of the widest product portfolios in
www.nicholaspiramal.com
Nicholas Piramal to issue rights shares
The
Board of Directors of Nicholas Piramal India Limited has approved a rights
issue of equity shares to the company’s shareholders. The rights issue will
raise equity funds not exceeding Rs 3,500 million.
A
subject press release said, the Board has appointed a committee to finalise
detailed terms of the issue, including number of shares to be offered and issue
price per share.
Commenting
on the decision, Ajay Piramal, chairman, subject said, ‘‘This is a fund raising
programme for financing their plans in the immediate future. Considering the
latent value creation opportunity in the company, they thought it fit to
conserve the value for existing shareholders in this investment phase, and
hence decided on rights issue as the mode of fund raising.’’
PRESS RELEASE
Nicholas Piramal wins The 2006 International Spirit at work
Award
22.08. 2006: The International Spirit at Work Award (formerly
the Willis Harman Spirit at Work Award) was created in 2001 to honor
organizations that have explicit spiritual practices, policies or programs. The
Award was inspired by the late visionary futurist Willis Harman, PhD
(1919-1997). Four groups “co-own” and “co-organize” the Award: The Association
for Spirit at Work , the Spirit in Business Institute ,The World Business
Academy . and the European Bahá’í Business Forum.
The Selection Committee for The 2006 International Spirit at Work Award has
selected Nicholas Piramal, Limited. as an honoree for several reasons. You are
being recognized for the success in imbuing the organization with spiritual
values. You have provided spiritual guidance to the business community in the
publishing of the book, "The Light has come to me", which uses 18
verses for the Geeta to serve as the company's management philosophy. They wish
to recognize the dedication to provide spiritual guidance to the employees by,
providing yoga and meditation from one of the world's foremost exponents, and
allowing employees of all religions the expression of their own spiritual
beliefs. The commitment to the community by establishing programs to help
empower women, teach the poor, and nurture people's health is highly laudable.
You are to be commended for the compassion you showed on Parel Island by
eliminating polio from a 10 mile radius, and the lives you saved and inspired
by enriching a community with new life
Nicholas
Piramal reports Q2 for the year2007 results; Consolidated Revenues up by 79.3%
to Rs. 6.5 billion, Operating Profit up by 76.7% to Rs. 1.1 billion, Net Profit
up by 17.7% to Rs. 536.900 million
Mumbai,
18.10. 2006: Nicholas Piramal India Limited (subject) today reported
second quarter (Q2) results for for the year2007. Total Operating Income on
consolidated basis for the quarter ended 30 September 2006 was up by 79.3% to
Rs. 6.5 billion over Q2for the year06. Operating profit increased by 76.7% to
Rs. 1.1 billion. Net profit for the quarter after providing for an amount of
Rs.102.000 million towards proportionate share of Income/Expense in the Boots
Piramal JV for for the year2006 was up by 17.7% to Rs. 536.900 million.
During
the quarter, subject’s domestic branded formulations business reported a robust
growth of 22%. As per ORG-IMS MAT August-06 reports, subject continues to be
the second fastest growing company among the Top-10 companies with growth rate
of 20.9% against the market growth of 16%. subject has performed particularly
well in Respiratory, Anti-Diabetic, Gastro-intestinal, Dermatology and NSAIDS
segments with growth rates in each of these therapeutic areas being higher than
25%.
Subject’s
international sales (excluding
Subject
continues to invest in R&D. R&D expenditure during the quarter was up
by 87.7% from Rs. 155.000 million in Q2for the year06 to Rs. 290.900 million.
During
the quarter, subject acquired the balance 51% equity stake in its 49:51 joint
venture company Boots Piramal Healthcare Private Limited (BHPL). Pursuant to
the agreement, the Joint Venture's marketing rights in the brands Strepsils,
Clearasil and Sweetex in
During
the quarter, subject acquired the balance 40% equity stake in its 60:40 joint
venture company Subject – Dr. Phadke Pathology Laboratory & Infertility
Center Private. Limited. for an aggregate consideration of Re.140.000 Million. The
company has now become a wholly owned subsidiary of subject. Further, Subject
has also entered into a Joint Venture Agreement (effective 01.07.2006) to take
a 50% stake in DDRC Wellspring Pathlabs Private Limited for Rs.70.000 Million.
Wellspring, the Pathlabs arm of subject now has presence across
For
further information contact:
Vijay
Sathye Ganesh Somwanishi
Sagar
Gokani Imprimis Life PR
Nicholas
Piramal India Limited
Contact:
+91-22-3046 6412/3046 6474
investorrelations@nicholaspiramal.co.in
About
Nicholas Piramal India Limited:
Nicholas
Piramal India Limited ("subject") is one of
subject
has a long track record of successful collaboration with innovator companies.
Since 2003, the Company has made significant investments to become a global
custom manufacturing organisation (“CMO") for large and medium-sized
innovator companies. Nicholas Piramal has a global CMO footprint across North
America, Europe and
Subject
is listed in
Formulation
Capabilities to leverage Subject Pharma growth
Mumbai, 14 February 2007: subject Pharma has announced a new programme
to leverage its global strengths in formulation services to further advance its
position as a top tier player in custom development and manufacturing. The
company is using InformexUSA to set out its integrated formulation development
and manufacturing capabilities and to announce investment in new formulation
facilities.
“Subject Pharma is uniquely positioned to offer integrated formulation services
at all phases of drug development – from preclinical formulations to launch of
commercial formulation - and with the additional assets and experience for
global launch and commercial supply in final dosage form”, says Michael
Fernandes, Executive Director responsible for subject pharma’s custom
manufacturing business.
“This sets a new and highly competitive benchmark for what CMOs can deliver
under the heading of integrated services”, notes Fernandes.
Across its early phase (development) and late phase (manufacturing) formulation
services, in the
By integrating its capabilities and assets in
As part of
The focus on formulation services and final dosage forms follows capabilities
added in last June’s acquisition from Pfizer of the fully integrated API
production and formulation facility at Morpeth, UK.
As a result, subject Pharma now has an annualized aggregate drug formulation
capacity of: 3 billion tablets; 500 million low RH (<8%) tablets; 270
million hard gelatin capsules; 180 million opthalmic liquids (FFS
Technology); 48 million. glass vials and 30 million ampoules – supported
by full packaging and supply chain capability.
The company will launch its fully integrated formulation capabilities to both
existing and new small/virtual and large pharma customers in Europe and
Distinctive combination:
With annual custom manufacturing revenues of them $250m. – including
approximately them $100m. in formulation - subject pharma is one of the world’s
top 10 pharma outsourcing companies. Leveraging its formulation strengths, by
integrating capabilities in
“It’s a distinctive combination of capabilities and experience along the total
formulation and API value chain that creates the competitive edge”, notes Mike Fernandes.
“subject Pharma’s integrated approach to drug development, with full
partnership all the way from drug pre-formulation to launched product and
lifecycle management is a highly distinctive offer to small/virtual and big
pharma companies alike”.
Formulation facilities:
Subject Pharma combines pre-formulation, dosage formulation development
and commercial scale formulation manufacturing across three sites – Mumbai and
Pithampur in
Morpeth has added a major suite of FDA-approved formulation assets to subject’s
existing api development and manufacturing capabilities in
The company stresses the benefits of synergies between sites – recognising
pre-formulation work at its Torcan early phase API facility in
subject Pharma’s formulation development capabilities now span conventional and
new dosage forms including tablets and capsules; sterile injectables; blow fill
seal; lyophilized dosage forms; solid dosage forms under very low humidity;
solutions; transdermals; sprays and foams.
By 2010, subject Pharma aims to be the market leader in preformulation and
formulation development to clinical manufacture of capsules, liquid-filled hard
gelatine capsules, tablets, and in sterile asceptic solution and lyophilized
injectables.
Latest in a series:
Development of an integrated formulations service is the latest in a
series of investments/acquisitions to expand subject’s pharma custom services
footprint, following acquisition of UK/Canada-based Avecia Pharmaceuticals in
late 2005.
At CPhi 2006, subject Pharma announced the creation of a new business unit,
Subject Innovations – Subject(i), to bring forward and apply new technologies
for API process development and production. Dedicated to step changes that can
accelerate commercial production efficiencies, Subject(i) is working with both
customers and the academic community.
Its portfolio includes the new catalyst-based chiral racemisation technology
SCRAM™, developed by subject Pharma (UK) to deliver process, cost and
environmental benefits – and the technology focus also prominently includes
biocatalysis, chemocatalysis and flow processing.
In the HPS niche, Subject Pharma last Summer announced a THEM$500,000 upgrade
investment at its High Potency APIs manufacturing facility in
Business units:
Subject Pharma provides full lifecycle custom manufacturing and
formulation services primarily through its early phase Pharma Development and
Scale-up (PDS) and late phase Pharma Manufacturing Services (PMS) business
units.
Subject’s early phase API development capability is led by Torcan in
The PDS and PMS business units are complemented by niche capabilities in
pharma. technologies – notably through subject (i) - and in High Potency
Substance manufacturing, including cytotoxics and bioconjugates.
Subject Pharma’s parent Nicholas Piramal India Ltd. is part of Piramal
Enterprises Ltd. - one of
Press Release:
Notes to editors:
Formulation Facilities –
The Mumbai R&D Centre houses a
Preformulation team with capability for solubility, solution and solid state
stability, early toxicity formulations, solubilization strategies, and full
phyisco-chemical characterization. Early formulation capabilities offer fast
turnarounds via efficient dosage form and analytical method development. A state-of-the art sterile supplies pilot
plant is being built in Mumbai for commissioning in Q4 2007. Clinical manufacturing
of capsule and tablet dosage forms is focused at the Pithampur pilot
plant.
Formulation Facilities –
Facilities at Morpeth have capability for
preformulation and early phase development formulation (small scale batches for
pre-clinical and clinical studies); Phase III/commercial scale formulation
manufacturing; tablet manufacturing and packaging and a containment suite for
manufacture and packaging of hormonal/high potency tablet formulations.
Production assets embrace large scale
granulation, compression, encapsulation and coating capability – including
press-coated, tablet-in-tablet capability and blister packaging lines with
outputs ranging to 450 blisters/minute.
Morpeth has a proven track record and
capability to support multiple market launches and ongoing supply of packaged
products, and is currently supplying over 300 finished dosage product forms to
over 100 markets.
Subject Pharma:
subject Pharma has seven API and finished
dosage production sites in
subject Pharma employs over 2,000 people
across its nine business locations. Parent business subject had financial 2006
sales of THEM $352m. subject is the flagship of Piramal Enterprises (PEL).
Headquartered in Mumbai, PEL also has interests in retailing, textiles,
auto-components and engineering.
For further information contact:
Ajit Mahadevan
President - Pharma Manufacturing Services (Formulations)
Nicholas Piramal
Tel: +91 22 3046 6483
Fax: +91 22 24902385
Roger Johnstone
Account Director
Deben Editorial ServicesTel" Tel: +44 (0)161 614 1450
Mobile:+44(0)7841433141
rdi@debened.co.ik
Vijay Sathye
President - M&A and Investor Relations
Nicholas Piramal India Limited
Tel: +91 22 3046 6412
Fax: +91 22 24934 708
History
Nicholas Piramal was incorporated in 1947 as Indian Schering
as subsidiary of British
Nicholas Piramal
The company has a portfolio of around 160 brands. Recently, it purchased two
brands from Hoechst - Omnatax (cefataxim) and Zidime (ceftazidime). Allergan
India Limited is 51:49 joint venture company between Allergan Inc.,
The subsidiaries of subject are subject Laboratories and Diagnostics Private
Limited, subject- Dr. Phadke Pathology Laboratory and Infertility Center
Private Limited, subject-Dr. Golwilkar Laboratories Private Limited, subject
Fininvest Private Limited, subject Pharma Inc., Piramal International and
subject Life Science Limited.
Nicholas Piramal had earlier acquired Nicholas Laboratories in 1988, Roche
Products in 1993, Boehringer Manheim in 1996 and an R and D unit of Hoechst
Marion Rousell in 1998. It has also formed strategic alliances and joint
ventures, viz. Scholl Piramal in 1994, Alergan in 1995, Sarabhai Piramal in
1997, Reckitt Piramal in 1998, Solumiks Pirmal in 1998, Boots Piramal in 1999
and Charak Piramal in 1999.
During 2000-2001, the company through its wholly owned subsidiary, subject
Fininvest acquired 40% equity stake in Rhone Poulenc
In an EGM held on 14.06.2001, the shareholders have approved the scheme of
arrangement for the merger of Rhone Poulenc, Super Pharma - a distributor
company acquired in April 2001 and certain assets and liabilities of subject
Fininvest with the company. The company has acquired Pharmaceutical Business of
ICI India for a consideration of Rs.700.000 Millions including for acquiring
the net current assets.
By a scheme of arrangement between the company and Kojam Finvest Limited (KFL)
the company has transferred the investment held by the company in its
subsidiary Gujarat Glass Private Limited to KFL. subject has transferred its
investments in Gujarat Glass Private Limited and its subsidiaries w.e.f.
01.07.2004 into a new holding company Kojam Fininvest Limited (Kojam). The
shares of Kojam were allotted free-of-cost to shareholders of subject in
proportion to their ownership of subject and the allotment ratio was 1:4.
The year 2003 was significant for subject since in that year Global Bulk Drugs
and Fine Chemicals Limited(GBDFC) was amalgamated with the company. GBDFC
manufactures APIs, Intermediates and
Formulations for the regulated markets and also its plant near
In January 2005 the company sub-divided its equity share face value from
Rs.10/- per share to Rs.2/- per share. Further in July 2005 the company came
out with a rights issue of equity shares for its shareholders in the ratio of
In 2006, The company has increased its installed Capacities Liguids 14613.2 KLs
to 14744 KLs, Bulk Drugs and Intermediates 733 MT to 920 MT and Vitamin A in
Various Forms and Combinations 77.7 MMU to 92.00 MMU.
The company has acquired Avecia Pharmaceuticals,
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating Subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that Subject is
or was the Subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the Subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against Subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against Subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against Subject: None
7] Criminal Records
No
available information exist that suggest that Subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the Subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the Subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identifor the year management and governance. These
factors often have been predictive and in some cases have created
vulnerabilities to credit deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the Subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.95 |
|
|
1 |
Rs.81.80 |
|
Euro |
1 |
Rs.55.09 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
73 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|