MIRA
INFORM REPORT
|
Report Date : |
05.08.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BIOCON
LIMITED |
|
|
|
|
Registered Office : |
20th
KM, Hosur Main Road, Electronics City, Bangalore – 560100, Karnataka |
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Country : |
India |
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|
Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
20.11.1978 |
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Com. Reg. No.: |
08-3417 |
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CIN No.: [Company
Identification No.] |
U00309KA1978PLC003417 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRB00214E |
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Legal Form : |
Subject
is a public limited liability company. The company’s shares are listed on the
stock exchanges. |
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Line of Business : |
Manufacturers,
Exporters and Importers of all kinds of Enzymes, Oleoresins, Catalytic
Preparations, Organic Chemicals and Organic and Bio-Chemicals, etc. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 66000000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company engaged in manufacturing and marketing of Biochemical’s,
Enzymes and Pharmaceuticals. The company’s track are fine and is making very
good progress in its turnover and profits. It has also plans to expand
further. The
company’s trade relations are reported as fair. Payments are usually correct and
as per commitments. The
company can be considered good for normal business dealings. |
LOCATIONS
|
Registered Office/ Factory : |
20th
KM, Hosur Main Road, Electronics City, Bangalore – 560100, Karnataka, India |
|
Tel. No.: |
91-80-28422169/28523434/
28082808 |
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Fax No.: |
91-80-28422623/25531662/28523423 |
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E-Mail : |
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Website : |
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Area : |
15000
sq. ft. |
|
Locations : |
Owned
|
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Factory 1 : |
Plot No 113/C2,
Bommasandra Industrial Area, Bommasandra, Bangalore – 560099, Karnataka,
India |
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Factory 2 : |
Plot No 2,3,4 and
5, Bommasandra – Jigani Link Road, Bangalore - 560099, Karnataka, India |
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Overseas office: |
1406,
Woodbridge, Commons Iselin, NJ 08830, USA |
|
Tel. No.: |
91-732
636 2950 |
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Fax No.: |
91-732
636 2951 |
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|
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|
Branch office : |
Located
at:-
Tel. No. 91-22-56919760/61/62
Tel. No. 91-11-26449819
Tel. No. 91-33-25501299 |
DIRECTORS
|
Name : |
Mrs.
Kiran Mazumdar |
|
Designation : |
Chairperson
and Managing Director |
|
Address : |
874/1,
7th Cross III Block, Koramangala, Bangalore - 560 034, Karnataka,
India |
|
Date of
Birth/Age : |
20.11.1978 |
|
Qualification
: |
B.Sc.
(Hons.), PG Diploma in Malting & Brewing |
|
Date Of
Appointment : |
01.12.1978 |
|
Previous
Employment: |
Jupiter
Breweries, Kolkata, West Bengal (Consultants) |
|
|
|
|
Name : |
Mr.
J. M. M. Shaw |
|
Designation : |
Whole-
time Director |
|
Address : |
874/1,
7th Cross III Block, Koramangala, Bangalore - 560 034, Karnataka,
India |
|
Date of
Birth/Age : |
12/04/1949 |
|
Date of
Appointment : |
29/09/1998 |
|
|
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|
Name : |
Dr.
Neville Bain |
|
Designation : |
Director |
|
Address : |
High Trees,
Cavendish Road, Waybridge, Surrey KT 13, OJX, UK |
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Date of
Birth/Age : |
17/04/1955 |
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Date of
Appointment : |
08/08/2000 |
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|
Name : |
Prof.
Ravi Mazumdar |
|
Designation : |
Director |
|
Address : |
706, Carrolton
Boulevard, West Lafayeete, IN - 47906, USA |
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Date of
Birth/Age : |
14/07/1940 |
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Date of
Appointment : |
08/08/2000 |
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|
Name : |
Prof.
Charles L. Cooney |
|
Designation : |
Director |
|
Address : |
14/09/1961 |
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Date of
Birth/Age : |
35, Chestnut
Palace, Brookline MA , USA |
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Date of
Appointment : |
27/07/2001 |
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|
Name : |
Dr.
Bala Manian |
|
Designation : |
Mr.
Catherine Rosenberg |
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|
Name : |
Mr.
Suresh Talwar |
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Designation : |
Director |
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|
Name : |
Prof Catherine Rosenberg |
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Designation : |
Alternate Director |
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|
Name : |
Mr. John Shaw |
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Designation : |
Director |
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|
Name : |
Mr.
Anthony Allison |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr.
Ajay Bhardwaj |
|
Designation : |
President
– Group Marketing |
|
Date of
Birth/Age : |
46
Years |
|
Qualification
: |
M. S. [Chemical
Engineering] |
|
Experience : |
22 Years |
|
Date of
Appointment : |
01.01.1986 |
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Last Employment
: |
Project Engineer
Max India Limited, New Delhi |
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|
Name : |
Dr.
Chaitanya R. Divgi |
|
Designation : |
Chief
Executive |
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|
Name : |
Mr. J
M M Shaw |
|
Designation : |
Vice
Chairman |
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Qualification
: |
M. A [Hons] |
|
Date of
Appointment : |
01.04.1999 |
|
Last
Employment : |
President –
Berghaus International Fashion Group, Holland |
|
|
|
|
Name : |
Prof.
Hans Wigzell |
|
Designation : |
Head
[Centre for Medical Innovations] |
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|
|
Name : |
Dr. Arun
Chandavarkar |
|
Designation : |
President
(Operations and Technology) |
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Qualification
: |
Ph. D. [Chemical
Engineering] |
|
Date of
Appointment : |
08.11.1990 |
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|
|
|
Name : |
Mr.
Murali Krishnan |
|
Designation : |
President
(Finance) |
|
Qualification
: |
B. Com. CA |
|
Experience : |
24 Years |
|
Date of
Appointment : |
09.11.1981 |
|
|
|
|
Name : |
Mr.
Rakesh Bamzai |
|
Designation : |
Vice
President, Marketing |
|
Date of
Birth/Age : |
45
Years |
|
Qualification
: |
B. Sc. [Food and Fermentation
Tech] |
|
Experience : |
17 Years |
|
Date of
Appointment : |
19.04.1995 |
|
Last
Employment : |
Assistant General
Manager – Marketing Advanced
Biochemical’s Limited |
|
|
|
|
Name : |
Mr.
Chinappa M. B. |
|
Designation : |
Vice President,
Finance |
|
Qualification
: |
B. Com. ACA |
|
Date of
Appointment : |
12.07.1999 |
|
Last
Employment : |
Finance Manager
ITC Limited, Calcutta |
|
|
|
|
Name : |
Mr.
Shrikumar Suryanarayan |
|
Designation : |
President
(Research & Development) |
|
Qualification
: |
M. Tech
[Chemicals Engineering] |
|
Date of
Appointment : |
02.05.1984 |
|
|
|
|
Name : |
Dr.
Goutam Das |
|
Designation : |
Chief
Operating Officer, Syngene |
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|
|
Name : |
Mr.
A. S. Arvind |
|
Designation : |
Chief
Operating Officer, Clinigene |
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|
Name : |
Dr.
Sambasivam Ganesh |
|
Designation : |
Chief
Scientific Officer |
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|
Name : |
Dr.
Subir Kumar Basak |
|
Designation : |
General
Manager, Business Development |
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|
Name : |
Mr. Ravindra
K. C. |
|
Designation : |
General
Manager, production |
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|
Name : |
Dr.
Harish V. Iyer |
|
Designation : |
General
Manager, Research and Development |
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|
Name : |
Dr.
Tara Jayaram |
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Designation : |
General
Manager, Quality Assurance |
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|
Name : |
Mr.
Ramalingeswara Rao K. |
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Designation : |
General
Manager, Marketing |
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|
Name : |
Mr.
Akash S. Puranik |
|
Designation : |
General
Manager, Marketing |
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|
Name : |
Mr.
Sandeep Rao |
|
Designation : |
General
Manager, Marketing |
|
Date of
Birth/Age : |
32
Years |
|
Qualification
: |
M. Sc. PGDM |
|
Experience : |
7 Years |
|
Date of
Appointment : |
15.06.1999 |
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|
|
|
Name : |
Mr.
Gautam Reddy |
|
Designation : |
General
Manager, Group HR |
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|
|
|
Name : |
Mr.
Sundaresh S. R. |
|
Designation : |
General
Manager, Commercial |
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|
Name : |
Mr.
Anindya Sircar |
|
Designation : |
General
Manager, IPR |
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|
Name : |
Mr.
Prasad B. S. V. |
|
Designation : |
General
Manager, Productions |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.06.2008)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Shareholding of Promoter and Promoter
Group |
|
|
|
Indian |
|
|
|
Individuals / Hindu Undivided Family |
40440112 |
40.44 |
|
Foreign |
|
|
|
Individuals (Non-Resident individuals /
Foreign Individuals) |
703779 |
0.7 |
|
Bodies Corporate |
19767597 |
19.77 |
|
Public
shareholding |
|
|
|
Institutional |
|
|
|
Mutual Funds / Axis |
9453627 |
9.45 |
|
Financial Institutions /Banks |
48737 |
0.05 |
|
Insurance Companies |
804335 |
0.8 |
|
Foreign Institutional Investors |
6371601 |
6.37 |
|
Non-institutional |
|
|
|
Bodies Corporate |
1931208 |
1.93 |
|
Individuals |
|
|
|
Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
7815490 |
7.82 |
|
Individual shareholders holding nominal share
capital in excess of Rs 0.100 Million |
6406200 |
6.41 |
|
Any Other- |
|
|
|
Non resident Indians |
506820 |
0.51 |
|
Clearing Members |
356445 |
0.36 |
|
Foreign Nationals |
71510 |
0.07 |
|
Foreign Bodies |
52687 |
0.05 |
|
Trusts |
5269852 |
5.27 |
|
Total
|
100000000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers,
Exporters and Importers of all kinds of Enzymes, Oleoresins, Catalytic Preparations,
Organic Chemicals and Organic and Bio-Chemicals, etc. |
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Products : |
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Brand Names : |
"BIOCON" |
PRODUCTION STATUS
|
Particulars |
Unit |
|
|
Actual
Production |
|
Enzymes |
Kg. |
|
|
4576302 |
|
Pharmaceuticals |
Kg. |
|
|
9689578 |
GENERAL
INFORMATION
|
No. of Employees : |
2772 |
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Bankers : |
·
State
Bank of India, Overseas Branch, M. G. Road, Bangalore, Karnataka
Manipal Centre, Dickenson Road, Bangalore - 560 042, Karnataka Tel. No. 91-80-5585444 Fax No. 91-80-5584411
Vasanthanagar
Branch, Bangalore - 560052, Karnataka, India |
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Facilities : |
Cash credit, packing credit, etc The Company has rupee and foreign currency denominated fund
based working capital facilities with State Bank of India (SBI) .These
facilities are repayable on demand, secured by a pari-passu first charge on
current assets. As on March 31, 2008 the Company has utilized Rs.443.148
Millions The Company has fund and non fund based working capital
facilities with Hongkong and Shanghai Banking Corporation (HSBC). These
facilities are repayable on demand, secured by pari-passu first charge on
current assets of the Company. As on March 31, 2008 the Company has utilised
fund based limits of Rs.242.738 Millions (iii) The Company has working capital facilities with Canara
Bank (‘CB’). These facilities are repayable on demand, secured by a paripassu
first charge on current assets of the Company .As on March 31, 2008 the
Company has utilised Rs.206.748 Millions (iv) The Company has fund and non fund based working capital
facility with ABN Amro Bank. These facilities are repayable on demand,
secured by a pari passu second charge on the fixed assets of the Company. As
on March 31, 2008 the Company has utilised Rs.Nil (v) All the above banks have entered into an inter-se
agreement for operational convenience for the above working capital limits
effecting the modification of the above charge and creation of a pari passu
charge on the current assets of the company in favour of all the above banks.
Under the Industrial Policy of the Government of Karnataka, the Company on November 18, 2000 obtained an order from the Karnataka Sales Tax Authority for allowing deferment of sales tax (including turnover tax) for a period upto 8 years with respect to sales from its Bommasandra manufacturing facility for an amount not exceeding Rs.24.375 Millions. As at March 31, 2008 the Company has utilized Rs.0.354 Millions
Under the Agro Food Processing Industrial Policy of the Government of Karnataka, the Company on November 18, 2000 obtained an order from the Karnataka Sales Tax Authority for allowing deferment of sales tax (including turnover tax) for a period upto 12 years with respect to sales from its Hebbagodi manufacturing facility for an amount not exceeding Rs.648.938 Millions. As at March 31, 2008, the Company has utilised Rs.542.685 Millions On March 31, 2005, the Company entered into an agreement with the Council of Sceintifi c and Industrial Research (‘CSIR’), for an unsecured loan of Rs.3.180 Millions for carrying out part of the research and development project under the New Millenium Indian Technology Leadership Initiative (‘NMITLI’) Scheme. The loans are repayable over 10 annual equal installments starting from October 1, 2008 and carry an interest rate of 3 per cent per annum. The amount of repayment within one year is Rs.0.318 Millions. |
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Banking Relations : |
Satisfactory |
|
|
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|
Auditors : |
Arthur
Anderson Chartered
Accountants |
|
Address : |
Bangalore,
Karnataka |
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|
Associates: |
Syngene
International Private Limited is a 99.99% owned subsidiary of Biocon. It was
incorporated on Novemvber 18, 1993. By way of a restructuring, 99.9% of the
shares in Syngene held by Kiran Mazumdar Shaw, ICICI and a few other
scientists were transferred to Biocon in consideration for the issue of
shares by Biocon to the shareholders of Syngene on March 31, 2002. The
paid-up capital of Syngene is Rs. 28.750 millions.
Clinigene
International Private Limited is a 100% owned subsidiary of Biocon Limited.
It was incorporated on August 4, 2000 with an authorised capital of Rs 5.000
millions. The paid-up capital of Clinigene is Rs. 0.500 million.
BBPL
is a Joint Venture company of Biocon in collaboration with CIMAB SA, Cuba.
The equity participation by Biocon is 51%. The Joint Venture agreement was entered
on February 22, 2002. The paid-up capital of BBPL is Rs. 8.800 millions. |
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Subsidiaries/ Joint venture: |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120000000 |
Equity shares |
Rs.5/- each |
Rs.600.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity shares |
Rs.5/- each |
Rs.500.000 millions |
|
|
|
|
|
Note:
Of the above equity
shares:
(i) 30,800 equity shares of Rs.100 each were allotted as fully paid bonus shares by capitalisation of general reserve in the year ended March 31, 1997.
(ii) 23,471 equity shares of Rs.100 each were allotted as fully paid-up shares in the year ended March 31, 2000 pursuant to a contract for consideration other than cash.
(iii) On March 30, 2002, the Company acquired 99.9 per cent equity in Syngene through the issue of 202,780 equity shares of Rs.10 each. The consideration was determined on the basis of a fair valuation, as approved by the statutory authorities in India. The related securities premium at Rs.403.8 per equity share has been credited to securities premium account.
On November 11, 2003, the Company issued 86,324,700 equity
shares of Rs.5 each as fully paid up bonus shares by capitalisation of the
balance in the profit and loss account of Rs.431.624 Millions.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
500.000 |
500.000 |
500.000 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
12781.963 |
8916.405 |
7530.435 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
13281.963 |
9416.405 |
8030.435 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
892.634 |
587.331 |
677.549 |
|
|
2] Unsecured
Loans |
546.219 |
480.402 |
372.927 |
|
TOTAL BORROWING
|
1438.853 |
1067.733 |
1050.476 |
|
|
DEFERRED TAX
LIABILITIES |
398.237 |
397.569 |
279.738 |
|
|
|
|
|
|
|
TOTAL
|
15119.053 |
10881.707 |
9360.649 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
6518.596 |
6649.894 |
2278.123 |
|
Capital work-in-progress
|
646.341 |
299.048 |
4564.301 |
|
|
|
|
|
|
|
INVESTMENT
|
4772.602 |
786.000 |
1390.554 |
|
Intangible Assets
|
276.000 |
512.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
1677.350
|
1506.589
|
712.922
|
|
|
Sundry Debtors
|
2256.629
|
2748.526
|
1728.842
|
|
|
Cash & Bank Balances
|
81.244
|
76.313
|
34.201
|
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances
|
1235.457
|
467.779
|
362.845
|
Total Current Assets
|
5250.680 |
4799.207 |
3345.622
|
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
2345.166
|
1759.431
|
1818.890
|
|
|
Provisions
|
0.000
|
405.011
|
399.061
|
Total Current Liabilities
|
2345.166 |
2164.442 |
2217.951 |
|
Net
Current Assets
|
2905.514 |
2634.765 |
1127.671 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
15119.053 |
10881.707 |
9360.649 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
8320.839 |
8237.402 |
6874.924 |
|
|
Other Income |
971.165 |
393.457 |
56.911 |
|
|
Total Income |
9292.004 |
8630.859 |
6931.835 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2061.975 |
1710.491 |
1608.734 |
|
|
Provision for Taxation |
106.384 |
126.989 |
273.904 |
|
|
Profit/(Loss) After Tax |
1955.591 |
1583.502 |
1334.830 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
NA |
4489.161 |
3577.231 |
|
|
Recovery of freight, insurance etc on
exports |
NA |
38.757 |
1.504 |
|
|
Technical Licensing fees |
NA |
272.352 |
10.781 |
|
Total Earnings |
NA |
4800.270 |
3589.516 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
NA |
2375.579 |
2481.980 |
|
|
Packing Materials |
NA |
15.051 |
2.164 |
|
|
Capital Goods |
NA |
188.097 |
349.095 |
|
Total Imports |
NA |
2578.727 |
2833.239 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses, Contract research
and other expenses |
6511.351 |
6266.690 |
5077.718 |
|
|
Interest and finance charge |
28.698 |
77.618 |
16.887 |
|
|
Others Expenses |
689.980 |
576.060 |
228.496 |
|
Total Expenditure |
7230.029 |
6920.368 |
5323.101 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2008 |
|
Type |
|
|
1st
Qtr |
|
Sales Turnover |
|
|
2211.800 |
|
Other Income |
|
|
162.800 |
|
Total Income |
|
|
2374.600 |
|
Total Expenditure |
|
|
1858.200 |
|
Operating Profit |
|
|
516.400 |
|
Interest |
|
|
18.200 |
|
Gross Profit |
|
|
498.200 |
|
Depreciation |
|
|
176.800 |
|
Tax |
|
|
31.500 |
|
Reported PAT |
|
|
300.100 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt
Equity Ratio |
0.11 |
0.12 |
0.12 |
|
Long
Term Debt Equity Ratio |
0.05 |
0.05 |
0.04 |
|
Current
Ratio |
1.52 |
1.29 |
0.97 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.04 |
1.51 |
2.48 |
|
Inventory
|
5.68 |
6.93 |
8.21 |
|
Debtors |
3.61 |
3.69 |
3.82 |
|
Interest
Cover Ratio |
67.71 |
21.94 |
65.86 |
|
Operating
Profit Margin (%) |
30.79 |
26.70 |
25.69 |
|
Profit
Before Interest and Tax Margin (%) |
23.15 |
20.20 |
22.54 |
|
Cash
Profit Margin (%) |
26.86 |
24.34 |
21.57 |
|
Adjusted
Net Profit Margin (%) |
19.22 |
17.85 |
18.42 |
|
Return
on Capital Employed (%) |
16.62 |
18.34 |
19.47 |
|
Return
on Net Worth (%) |
15.32 |
18.18 |
17.84 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject is a fully integrated healthcare company was
incorporated in the year 1978 as a joint venture between Biocon Biochemicals Limited
of Ireland and an Indian entrepreneur, Kiran Mazumdar-Shaw. The Company's
business model spans the entire drug value chain, from pre-clinical discovery
to clinical development and through to commercialisation and focused on
biopharmaceuticals, custom research and clinical research. Company is an ISO
9001, ISO 14001:2004, ISO 9001:2000, ISO 15189:2003 and also OHSAS 18001:1999
certified for various levels. Company have two subsidiary companies for
support, namely Syngene International Ltd and Clinigene International Limited.
Companyhas rapidly developed a robust drug pipeline, led by monoclonal
antibodies and several other molecules at exciting stages in the
biopharmaceutical value chain.
Subject manufactured and exported enzymes to USA and Europe during the year
1979, as first of its kind. In 1989, Unilever plc acquired the Biocon
Biochemicals Limited in Ireland and merges it with its subsidiary, Quest
International. Also in the same year, the company had received US funding for
proprietary technologies. After a year, in 1990, Biocon had scaled up its
in-house research programme, based on a proprietary solid substrate
fermentation technology, from pilot to plant level. Biocon's R&D and
manufacturing facilities received ISO 9001 certification from RWTUV, Germany
during the period of 1993. In the year 1994, the company had established the
Syngene International Private Limited. as a Custom research Company (CRC) to
address the growing need for outsourced R&D in the pharmaceutical sector.
The commercial success of Biocon's proprietary fermentation plant leads to a
3-fold expansion during the year 1996 and also in the same year, the company
had leveraged its technology platform to enter biopharmaceuticals and statins.
Biocon had spearheads initiatives in human healthcare in the year 1997 through
a dedicated manufacturing facility.
During the year 1998, Unilever inked a deal with ICI to sell its specialty
chemicals division of which Quest International is a part. Unilever agreed to
sell its shareholding in Biocon to the Indian promoters. Biocon becomes an
independent entity in same period. In the year 2000, Biocon had commissioned
its first fully automated submerged fermentation plant to produce specialty
pharmaceuticals and also in the same year, the company had established
Clinigene, India's first Clinical Research Organisation (CRO) to pursue
clinical research and development. During the year 2001, Biocon becomes the
first Indian company to be approved by US FDA for the manufacture of
lovastatin, a cholesterol-lowering molecule. During the same year of 2001, the
company's proprietary bioreactor, PlaFractor was granted a US 2001 and
worldwide patent. Later on, in 2002, Clinigene's clinical laboratory of the
company received CAP accreditation as the first in India. The Company had
developed the human insulin on a Pichia expression system in the year 2003.
Biocon created a buzz in the stock market in March of the year 2004 with its
hugely successful IPO. Day 1 on the bourses closed with a market value of $1.11
billion, making Biocon only the second Indian company to cross the $1 billion
mark on the first day of listing. During the same year 2004, the Syngene had
established new research centre, launched INSUGEN, the new generation
bio-insulin, manufactured in Asia's largest human insulin plant.
Biocon Limited and Vaccinex, Inc, collectively announced a broad strategic
partnership to discover and co-develop at least four therapeutic antibody
products. Biocon had signed a commercial agreement for supply of insulin API to
Asia, Africa and the Middle East during the period of 2005. During the year
2006, the company inaugurated Biocon Park, India's largest integrated
biotechnology hub, comprising an integrated cluster of research laboratories
and manufacturing facilities spread across 90 acres in KIADB (Karnataka
Industrial Areas Development Board) industrial estate and also established
Biocon Biopharmaceuticals, India's largest multi-product Biologics facility at
Biocon Park. In the same year 2006, Biocon's Syngene and Innate Pharmaceuticals
AB, Umea, Sweden conclude a cooperation agreement to jointly develop,
manufacture and market virulence blockers to counteract bacterial diarrhoeal
disease and also launched India's first anti-cancer drug BIOMAb EGFR.
Abu Dhabi based pharmaceutical company Neopharma had signed an MOU with the
company to establish a JV to manufacture and market a range of
biopharmaceuticals for the GCC countries (Gulf Cooperation Council) in the year
2007. The Company launched its Nephrology Division and a comprehensive
portfolio of renal therapy products. Syngene had entered into a research
partnership with Bristol-Myers Squibb and completes the groundbreaking ceremony
of new research facility at Biocon Park. During the identical year of 2007,
Biocon signed Memorandum of Understanding with Deakin University, Australia to
establish Deakin Research Institute in Bangalore. The Company divested its
enzymes division for USD 115 million to Novozymes. Biocon and Neopharma signed
an MOU in July of the year 2007 to establish Neobiocon, a joint venture company
in Dubai's biotechnology and research park, Dubiotech.
As at January 2008, Subject and IATRICa, Inc made a strategic partnership to
co-develop an exclusive new class of immunoconjugates for targeted
immunotherapy of cancers and infectious diseases. In February of the year 2008,
the company had acquired 70% stake in German pharmaceutical company, AxiCorp
GmbH for a consideration of? 30 Million. As at June 2008, Biocon launched a
Safety Device in the form of pre-filled syringes for two of its life saving
products, GCSF (granulocyte-colony stimulating factor) and EPO (Erythropoietin)
in collaboration with Safety Syringes Inc.
BUSINESS
Subject is engaged in the business as Manufacturers, Exporters
and Importers of all kinds of Enzymes, Oleoresins, Catalytic Preparations,
Organic Chemicals and Organic and Bio-Chemicals, etc.
Subject is also engaged in to carry on the business of
manufacturing, processing, distilling, compounding, formulating, acquiring,
buying, selling, importing, exporting and dealing in all enzyme products from
animal, microbial, plant sources, products from fish sources, vegetable and
herb extracts, agricultural products including cattle feed, and all chemicals
heavy or fine, organic, inorganic, biological or any other formulations,
derivatives and compounds thereof from mineral origin or from other chemicals
or from by-products or waste products of other trades and industries and other
branded preparations and compounds, derivatives and formulations thereof and
consumers products based thereon, pharmaceutical specialities, surgical
specialities, cosmetics, germicides, detergents and acids.
The
company is in trade terms with:
·
Anil Agro Products Private Limited
- Avani Enterprise
- Bangalore Paper Filter Company
- Bangalore Genei Private Limited
- Cauvery Mineral Water Private Limited
- Drawcans Private Limited
- Eskay Fine Chemicals
- International Fibre Glass Products (Private) Limited
- Millenium Chem Pharma Private Limited
- Quantum Drugs and Chemicals
- Ragukul Industries
- Senthil Papai and Food Products Limited
- Speciality Organics Private Limited
- Microtrol Sterilisation Private Limited
- Bayer Chemicals
- Sunil Agro Food Private Limited
- Venus Casein Products
Results
of Operations:
During the year the operations excluding exceptional items reflected 10 percent growth in consolidated revenues while Operating Profits (EBITDA) and Profit after Tax grew by 17 percent and 12 percent respectively. The performance for the year reflects strong focus on operational efficiencies and aggressively defending their market position in the face of strong competition in the generic API space, monetization of some of their research programs by way of licensing and partnering and the divestment of the Enzymes business.
Business
Operations overview and Outlook:
Significant volume growth and increased market share in the European and
US Markets for Statinshelped to negate the impact of pricing pressures and the
weakening US Dollar thereby maintaining Statin sales at previous year’s levels.
Sales of Insulin increased significantly in both the domestic and export markets. The Company entered into licensing agreements covering certain markets in Asia and has also progressed its application for registration in the European Union and several countries across Asia, Latin America and Africa. To meet the overall increased projections for Insulin, the Company has commenced an expansion of its capacities and the new facility is near completion and is expected to be commissioned later this year.
Immunosuppressant are also expected to offer significant growth opportunities consequent to product patent expiry in key markets of Mycophenolate Mofetil and Tacrolimus in the period 2008-2012.
Biocon’s foray into direct marketing of formulations continued to make impressive strides. the Nephrology Division launched ERYPROTM and ERYPROSAFETM, for treatment in renal transplant and dialysis and two Immunosuppresants – RENODAPTTM and TACROGRAFTM. Biocon’s Insugen has been widely prescribed and accepted with impressive gains in market share and BIOMAB EGFRTM has been prescribed to over a 1,000 patients since its launch in August 2006.
Company signed two important agreements with Abraxis Biosciences, USA to out- license G-CSF for the North American and European markets and in-license Abraxane® for India and a few markets across Asia and the GCC. These agreements are expected to generate a steady stream of revenues once the products get regulatory approval in the relevant territories.
Company also entered into an agreement to acquire a majority stake in AxiCorp GmbH, Germany. This strategic investment will enable Biocon to market and distribute biosimilar insulin and analogs in Europe which together with NeoBiocon, its joint venture in Dubai, thereby expanding Biocon’s global reach.
Company continues to invest incrementally to progress its innovation pipeline. While during the year Biocon monetized some of it’s research programs by way of licensing and partnering , it’s rich product pipeline including IN-105, BVX 10, BVX 20 and T1H are expected to contribute significantly to Biocon’s growth in the future years. The year company has completed Phase I studies of IN-105 in India and received approval for commencement of Phase II studies. Company has also initiated Phase I studies for IN 105 in Sweden and Phase II studies for T1H in India.
Subsidiaries and Joint Ventures:
Syngene International Limited:
Syngene has strong knowledge base where out of the total strength 907 employees (754 in the previous year) more than 90% employees are scientists. With the focused and collaborative efforts of its employees, Syngene has achieved greater heights during the year and has built a strong international reputation.
Clinigene
International Limited:
Clinigene International Limited is a wholly owned subsidiary of the Company focused on Clinical Development. For the current financial year, Clinigene earned a profit of Rs.24 million as against Rs.8 million in the previous year. The company registered revenue of 227 million as against Rs.115 million in the previous year.
During the year Clinigene has moved into a 65,000 sq. ft.
fully functional facility at Semicon Park which houses a complete array of
services including human pharmacology, clinical operations, clinical data
management, bioanlytical services and a central laboratory supporting early
phase to late phase clinical development programs. With demand for outsourced
research growing exponentially, Clinigene is
well positioned to strengthen its existing relationships and establishing new
partnerships with top MNC pharma companies for clinical development
requirements.
Biocon Biopharmaceuticals Private
Limited:
This is Biocon’s 51:49 JV with CIMAB SA, to manufacture monoclonal antibodies and other Recombinant Therapeutics. BBPL commenced operations during the current year and has primarily been engaged in the manufacture of BIOMAb-EGFR™ for the treatment of Head and Neck cancer.
As at March 31, 2008, BBPL had accumulated losses of Rs.325,611. Biocon’s share in the accumulated losses of BBPL aggregates Rs.166.062. Approval of BIOMAb-EGFR™ for new indications and commencement of sales to global markets is expected to help improve profitability in fiscal 2010.
MANAGEMENT'S
DISCUSSION AND ANALYSIS
Industry Structure and Development:
The global pharmaceutical sales grew 6 percent at constant exchange rates in 2007, to reach a record USD 712 billion. North America, Europe and Japan continued to account for about 80 percent of the total global pharmaceutical market, with North America experiencing slower growth at 4 percent. Emerging markets in Asia and Latin America continued to outpace global performance with double-digit growth. In terms of regional performance, North America, which accounts for 43 percent of global pharmaceutical sales, grew 4 percent, to USD 305 billion, while Europe buoyed by the appreciating Euro experienced higher growth of 7 percent, to USD 206 billion. Sales in Latin America grew 12 percent to USD 32 billion, while Asia Pacific (outside of Japan) and Africa grew 13 percent to USD 62 billion with China, Korea and India growing by 26 percent, 11 percent, and 13 percent respectively. Sales in Japan reversed the decline experienced in the previous year on account of the biennial price cuts which occurred April, 2006 and grew 4 percent to USD 59 billion.
Oncologics grew 16 percent to USD 41 billion and displaced Lipid Regulators as the top selling therapy class for 2007. Patent expiry of Zocor® and declining sales of Lipitor® partially contributed to Lipid Regulators sales declining by 7percent to USD 34 billion. Respiratory Agents with sales of USD 29 billion grew 12 percent and retained its position as the third largest class of therapeutic drugs. Antidiabetics at the 5th position also experienced double digit growth with sales of USD 24 billion.
The biopharmaceutical market represented 10 percent of the global pharmaceutical market, having grown 17 percent in 2007 and the double-digit growth of the market is expected to continue to the end of the decade.
Generic
Pharmaceutical Industry:
The generic drugs market refers to regulated markets for drugs whose patents have expired or been invalidated. The expiration or invalidation of product patents typically leads to the entry of generic, or non-branded, formulations in the regulated markets, resulting in increased competition and leading to a decline in price and margin of drugs.
Drugs with approximately $20 billion in annual sales will face patent expiry in 2008, similar to levels seen over the past two years. This is expected to drive growth of generics by 14-15 percent next year, to more than $70 billion. In 2008, more than two-thirds of all prescriptions written in the U.S. are expected to be for generics. New government contracting initiatives in Germany, and educational programs in Japan, Spain and Italy, will drive greater generics use in those markets. Also, generics competition within the biotech sector will rise as the biosimilarepoeitinalfa is marketed across Europe. This trend reflects a changing balance between new and old products and a growing ‘genericization’ of many primary care categories. Low cost producers such as India and China are expected to play a key role in the development of the generics industry.
Outlook:
The global pharmaceutical market is expected to grow at a 5-6 percent in 2008, compared with 6 percent in 2007. In the U.S. and the five largest European markets, sales growth in 2008 is expected to range from 4-5 percent and 1-2 percent in Japan. Key factors limiting growth in these markets include: a leveling off of growth from the introduction of the Medicare Part D prescription drug benefit in the U.S.; patent expiration of branded product, and an associated increase in the use of lower-cost generics; increased pressure from payers to control costs and limit access to certain treatments; and heightened safety scrutiny and healthcare legislation that is slowing, and in some cases halting, the introduction of new medicines. The seven “pharmerging” markets of China, Brazil, Mexico, South Korea, India, Turkey and Russia are expected to grow 12-13 percent next year, to $85-90 billion. In these markets, there is signifi cantly greater access both to generic and innovative new medicines as primary care improves and becomes more available in rural areas, and as private health insurance becomes more commonly held. Ongoing economic growth in the developing world will continue to shift the focus away from infectious diseases and toward cardiovascular, diabetes and other chronic illnesses.
Opportunities:
The surge in generics together with the expected patent expiry of
key immunosuppressant drugs provides Biocon with attractive opportunities in
the near to medium term. In addition the opening up of bio-similar in US and
Europe is seen as a large opportunity in the medium term. Success in Biocon’s
Research and Development initiatives into new drug discovery could also yield
significant benefits.
Bio-pharmaceuticals:
In pharma, they focus on the manufacture and marketing of APIs
that require fermentation and synthetic chemistry skills. their
biopharmaceuticals business contributes towards 94.5 percent & 88.5 percent
of theirsales in 2007-08 and 2006-07 respectively.
Statins:
Statins are cholesterol-lowering agents used to treat and
prevent coronary diseases and are amongst the largest selling drugs worldwide.
The
Company’s statins portfolio presently comprises lovastatin, simvastatin,
pravastatin, atorvastatin besides other statins under development.
Biocon is currently exporting simvastatin to the US, Europe, Japan and Canada,
lovastatin to the US and pravastatin to the US and European markets.
The Company has over the years been facing severe pricing pressure in this
segment due to increased competition and changing industry price
dynamics.
The US patent for Simvastatin and Pravastatin expired during
fiscal 2007 and the Company has commenced exports to USA in the 2nd
half of fiscal 2007. The Company has also during the year received US FDA
qualifi cation for its new facilities at Biocon Park thereby substantially
increasing the production capacity to address the Statin global demand.
Immunosuppressants:
Immunosuppressants prevent organ and tissue rejection in
transplants and require high technology based manufacturing capabilities.
Currently Biocon produces mycophenolate mofetil (MMF), sirolimus and
tacrolimus. MMF and tacrolimus are sold largely in the domestic market and
certain export markets. Biocon will actively promote it’s product in the US,
Japanese and European markets. Biocon has filed a DMF for MMF, tacrolimus and
sirolimus to address the US markets following patent expiry.
Other
biopharmaceutical products:
Subject also supplies a range of other Biopharmaceutical
products. Biocon markets recombinant human insulin in India under its own brand
name INSUGEN and has also registered the Insulin in several export markets. In
addition Company has supply arrangements with Pharma Majors and device
companies to supply recombinant human insulin for use in their novel insulin
formulations. Some of these delivery systems are undergoing clinical trials.
Sale of Formulations:
Company has a dedicated marketing team for finished
formulations. This segment, though in the nascent stage, has been growing
rapidly. With a focus on the anti-diabetic and cardio-vascular market, Biocon’s
own insulin brand ‘Insugen’ is also marketed by the formulation team. The
formulation segment currently has a team which comprises of field staff spread
across the country, with sales registering impressive growth in FY 2008 as
compared to FY 2007. During the fiscal year 2008, Subject launched its new
Nephrology Division and a comprehensive portfolio of renal therapy products.
Biocon’s Nephrology division is committed to finding solutions to kidney
disorders using the highest standards of biotherapeutics and will
simultaneously strive towards reducing the risks of the disease in the future,
through progressive research and innovative therapies. Company also launched
BIOMAb-EGFR™, a therapeutic monoclonal antibodybased drug for treating solid
tumors of epithelial origin, such as head and neck cancers. BIOMAb-EGFR™ is
produced at Biocon’s state-of-the-art manufacturing facility at Biocon Park.
Enzymes
Company develops and markets a mix of specialty and industrial
enzymes for a broad range of industries including food, beverages, brewing and
distilling, textiles and paper. The enzymes business has been sold to M/s.
Novozymes South Asia Private Limited during the year. Hence, Enzymes sales are
only recorded for the first 6 months during the fiscal 2008.
Technical Licensing
Fees
These fees represent income received by Biocon towards transfer
of proprietary technology in respect of certain bio-generics under long term
contracts. They also include fees received by Biocon towards out-licensing it’s
proprietary products. During the year, there has been an increase of Rs.176.061
Million in respect of such fees from Rs.272.352 Million in fiscal 2007 to
Rs.448.413 Millions in fiscal 2008. Company is committed towards tapping more
revenues from this source by scaling up a large number of bio-generics
including Insulin, GCSF, ERYPRO, Streptokinase, Retiplase, etc. and advancing
their discovery programs including oral insulin and Monoclonal Antibodies
against CD6, EGFR, CD 20 & CD 10.
Other Income
The Other income has registered a increase of 331.7 percent
compared to the previous year. Other income consists primarily of dividend
income from investment amounting to Rs.138.746Million as compared to
Rs2.922Million in the fiscal 2007. It also includes milestone receipts of
Rs.174.997Million and charges billed to group companies for services rendered
for support services which have increased from Rs.70.792Million in fiscal 2007
to Rs169.202Million in fiscal 2008.
Material costs
Material costs include Biocon’s consumption of raw materials
and traded goods and increases or decreases in stock. Materials costs have
decreased by 5.9 percent from Rs.4158.125Million to Rs.3914.284Million over the
previous year. But as a percentage of sales, the material cost has decreased by
3.5 percent mainly on account of increased manufacturing activity and reduction
in sourcing of advanced intermediates.
Employee costs
Staff
cost comprises:
• Salaries, wages, allowances and bonuses;
• Contributions to provident fund;
• Contributions to superannuation, gratuity and leave
encashment;
• Amortisation of Employees stock compensation expenses, and
• Welfare expenses (including employee insurance schemes and
other miscellaneous employee benefits) Staff costs has increased from
Rs.603.735Million for the fiscal year 2007 to Rs.696.263Million for the fiscal year
2008. The increase in employee costs is mainly due to increments during the
year and addition to employees.
Operating and other
expenses
Operating and other expenses comprises of rent; traveling and
conveyance; communication; professional charges; power and fuel; patent fees;
consumables; repairs and maintenance; general expenses; freight outwards; sales
promotion; commissions; bad debts write off; provisions for bad and doubtful
debts; printing and stationary; insurance; rates, taxes and fees; and losses on
sales of assets. Operating and other expenses have increased by 26.3 percent
from Rs1504.830Million for the year 2007 to Rs.1900.804Million for the year
2008 mainly on account of the following:
- 23 percent increase in power and fuel costs from Rs.620.715
Million in fiscal 2007 to Rs.761.171 Million in fiscal 2008 and 26 percent
increase in repairs and maintenance costs from Rs.166.500 Million in the
previous year to Rs209.925 Million in fiscal 2008 on account of increase in
production activity at Biocon Park.
- 20 percent increase in research and development expenses from
Rs.159.738 Million to 191.169 Million on account of increase in their ongoing
research initiatives including the oral insulin project.
- 38.8 percent increase in selling expenses from Rs.226.415
Million in FY 2007 to Rs.314.246 Million in FY 2008 due to increased sales of
Healthcare products and launch of oncology and nephrology marketing division.
PERFORMANCE OF SUBSIDIARIES
Syngene International Limited
Syngene
is a 99.99 percent owned subsidiary of Biocon Limited. Syngene was incorporated
on November 18, 1993 with an authorized share capital of Rs.5.000 Millions.
Syngene works in two main research areas: Synthetic chemistry and molecular
biology. Syngene is also involved in custom chemical synthesis.
Syngene’s
total income primarily consists of net sales from contract research services
and sales of compounds. Substantially all Syngene’s contracts are based on time
and material management. Revenue from these contracts are recognised as and
when services are rendered, in accordance with the terms of the contract.
Syngene’s total revenue has increased Rs.1316.928 Millions to Rs1604.283
Millions representing a growth of 22 percent. This growth in revenue is on
account of increase in the number of clients. In addition, Syngene’s income
from investment of its surplus funds in mutual fund units has decreased from
Rs.34.150 Millions in the fiscal 2007 to Rs 23.419 Millions in the fiscal 2008.
Syngene’s
expenses mainly comprises of raw-material costs and staff costs. Raw material
cost consists of lab consumables used for research. The increase in revenue was
mainly offset by increase in material cost by 39 percent from Rs.349.060
Millions in fiscal 2007 to Rs.483.715 Millions in fiscal 2008 and staff cost by
40 percent from Rs.261.855 Millions to Rs.366.835 Millions as compared to the
previous year. Increase in material cost and staff cost are due to increased
business and increase in head count. Other costs increased by 95 percent from
Rs.121.387 Millions to Rs.236.438 Millions in fiscal 2008.
Clinigene
International Limited
Clinigene is a 100 percent owned subsidiary of Company.
Clinigene was incorporated on August 4, 2000 with an authorised share capital
of Rs5.000 Millions. Clinigene was established to undertake clinical and other
trials and validation for drugs and pharmaceuticals and to conduct research in
the area of medical sciences for development of new and improved drugs.
Clinigene’s total income principally consists of income from
clinical research fees and also Bio-analytical and Bio-equivalence studies.
Clinigene enters either into time and material contracts and/or fixed price
arrangements. Revenue from time and material contracts are recognised on a
monthly basis as services are rendered in accordance with the terms of the
applicable contracts. Revenue from fixed price contracts is recognised based on
the percentage completion method. Total revenue of Clinigene increased from
Rs115.502 Millions in fiscal 2007 to Rs227.163 Millions in fiscal 2008,
primarily on account of increase in clinical research fees.
Clinigene’s expenses comprise of research material costs,
consultancy fees, staff cost, and other operating expense, interest cost, depreciation
and provisions for fringe benefi t tax. Consultancy fees has increased by 20
percent from Rs9.230 Millions to Rs11.075 Millions as compared to 2007,
Clinigene’s staff cost has increased by 46.2 percent from Rs32.252 Millions to
Rs47.147 Millions as compared to previous year. This is because Clinigene is in
the process of developing its clinical research capabilities and is hiring
employees. As Clinigene require additional funds to develop its capabilities
and become profitable, Company is supporting it in its funding. The interest
expenses have increased from Rs9.010 Millions to Rs9.807 Millions on account of
borrowings for setting up of its new clinical research facility at Semicon
Park. As at March 31, 2008, it had accumulated losses of Rs31.207 Millions.
Profit for the year ended March 31, 2008 of Rs23.739 Millions as against
Rs7.812 Millions in the previous year, has been consolidated with the profits
of the group in the consolidated financial statements.
Biocon
Biopharamaceuticals Private Limited
BBPL is a joint venture company and currently 51 percent of its
shares are held by Biocon and the balance 49 percent by CIMAB, Cuba. BBPL was
incorporated on June 17, 2002 with an authorised share capital of Rs.500.000
Millions and in the year 2004 increased to Rs.10.000 Millions. In 2007 the
authorized share capital was increased from Rs132.000 Millions to Rs.440.000
Millions. BBPL has been established to produce and sell certain biological.
BBPL has commenced commercial operations during fiscal 2008. Company holds
8,976,000 equity shares and CIMAB holds 8,624,000 equity shares of Rs.10 each
respectively.
As at March 31, 2008, BBPL has accumulated losses of Rs325.611
Millions. Biocon’s share in the accumulated losses of BBPL aggregates Rs166.062
Millions.
|
Contingent
liabilities |
Rs
in millions 31.03.2008 |
|
(a) Taxation matters under appeal |
44.336 |
|
(b) Corporate guarantees |
|
|
(i) Corporate guarantee given in favour of
the CED in respect of certain performance obligations of Syngene. The Company
has informed that necessary terms and conditions have been complied with and
no liabilities have arisen |
217.500 |
|
(ii) Corporate guarantee given by Syngene
in favour of the CED in respect of certain performance obligations of Biocon. |
465.000 |
|
(c) Corporate guarantees given in favour of the CED in respect of
certain performance obligations of BBPL. The Company has informed that the necessary
terms and conditions have been complied with and no liabilities have arisen |
131.352 |
|
(d) Corporate guarantees given in favour of the CED in respect of
certain performance obligations of Clinigene. The Company has informed that
the necessary terms and conditions have been complied with and no liabilities
have arisen |
27.205 |
|
e) Corporate guarantees given in favour of State Bank of India (SBI),
towards Term loan granted to BBPL.
The Company has informed that the necessary terms and conditions have been
complied with and no liabilities have arisen |
650.000 |
|
(f) Claims against the Company not acknowledged as debts |
- |
Fixed Assets
- Land
- Buildings
- Leasehold improvements
- Plant and machinery
- Research and development equipment
- Furniture and fixtures
- Vehicles
Milestone
|
Year |
Key Events, Milestones and
Achievements |
|
|
|
|
November
1978 |
Biocon
commenced operations as a joint venture between the promoter Ms. Kiran Mazumdar-Shaw
and Biocon Biochemical’s Limited, an Ireland based multinational. The company
began the manufacture and export of Papain, a plant enzyme, and Isinglass, a
marine hydrocolloid, which are key products for the brewing industry |
|
July
1982 |
BCZ
was incorporated to focus on research and development in relation to enzymes. |
|
1984 |
Biocon
began focussing on research and development, to develop novel enzymes for the
Biocon group worldwide through solid-state fermentation process technology
referred to as "koji technology". |
|
April
1989 |
HLX
was incorporated as a pharmaceutical biotechnology company, which later
diversified into pharmaceutical bulk activities. |
|
July
1989 |
Biocon
along with Unit Trust of India/Technology Development and Investment
Corporation of India (UTI/TDICI), Biocon Biochemical’s Limited, Ireland and
others invested in BCZ. |
|
November
1992 |
UTI/TDICI
transferred their entire shareholding in BCZ to Biocon Limited, Ireland. BCZ
commenced operations |
|
January
1993 |
Bicon
received ISO 9001 accreditation from RWTUV, Germany |
|
November
1993 |
Syngene
was incorporated as a CRO to conduct research for third party clients in the area
of drug discovery and development. Syngene's skill set in the areas of
molecular biology and synthetic chemistry are complementary to their
expertise in the areas of fermentation and microbial genetics. |
|
February
1995 |
Unilever
acquired 50% of the shares in BCZ by acquiring the entire shareholding of
Biocon Biochemicals Limited, Ireland and Biocon Limited, Ireland. Unilever
also acquired shares in Biocon from Biocon Biochemicals Limited, Ireland and
Biocon Limited, Ireland and others |
|
December
1995 |
BQIL
was established with their Company and Unilever acquiring around 50% stake
each. BQIL commenced manufacturing operations from August 1996 |
|
February
1998 |
HLX
commenced manufacturing operations |
|
June
1999 |
Glentec
International acquired the entire shareholding of Unilever in BCZ, BQIL and
the company. |
|
March
2000 |
The
company acquired the entire shareholding of BCZ, BQIL & HLX from Glentec
International, Ms. Kiran Mazumdar-Shaw and others in exchange for issue of
shares by the Company. Glentec
International acquired a majority stake (approx 64%) in Syngene as part of a
fresh issue of shares. |
|
March
2000 |
ICICI
Ventures and its affiliate funds were inducted as shareholders of the company
by way of subscription to 15.35% of the share capital of the company. |
|
May
2000 |
ICICI
Ventures, and its affiliate funds also acquired 10% in Syngene from Glentec
International. |
|
May
2000 |
The
company’s proprietary bioreactor christened PlafractorTM based on solid matrix
fermentation received a U.S. patent |
|
December
2000 |
Clinigene
was incorporated to conduct longitudinal clinical studies in select disease
segments as a wholly owned subsidiary of the company. |
|
January
2001 |
As
part of a court based restructuring, BCZ, BQIL and HLX were amalgamated into
the company, with effect from April 1, 1999. The
company Lovastatin facility was approved by the US FDA |
|
March
2002 |
The
company acquired 99.99% of Syngene from its other shareholders, including ICICI
Venture and its affiliate funds, which divested their entire stake in Syngene
in exchange for issue of shares by the company. Syngene was made a 99.99%
subsidiary of Biocon Limited. |
|
March
2003 |
BBPL was
incorporated to manufacture and market a select range of biotechnology based
life saving drugs as a 51:49 joint venture with CIMAB and the company |
|
May-September
2003 |
ICICI
Ventures along with its affiliate funds divested its shareholder interests in
the company in favour of other private equity funds, being AIG AOF, a wholly
owned subsidiary of AIG Asian Opportunity Fund L.P. and IVF and also to the
Welfare Trust. |
|
March
11, 2004 |
Biocon
goes for an IPO to raise Rs 3000.000 millions to fund its huge capital
expansion plans. |
|
March
18, 2004 |
Biocon's
IPO gets oversubscribed 32 times |
Board of Directors
Dr. Neville Bain • Chairman, Institute of
Directors, UK • Board Member, Scottish & Newcastle
Plc., Provexis Limited • Former
Group CEO, Coats Viyella Plc. • Former
Deputy Group Chief Executive and
Finance Director, Cadbury Schweppes Plc. • Author of several management
books on corporate governance, strategy and people management
Prof. Charles L. Cooney • Professor, Chemical &
Biochemical Engineering, MIT, USA • Director, Genzyme Inc. and Bio-Processors Inc. • Recipient of prestigious
awards, including Gold Medal of the
Institute of Biotechnology Studies and Distinguished
Service Award from the American Chemical Society
Dr. Bala S. Manian • Chairman and Co-founder,
Reametrix Inc. • Co-founder, Quantum Dot
Corporation and Surromed Corporation, USA • Expert in the design of electro-optical systems • Authored several peer-reviewed
scientifi c publications and holder of many patents • Recognised through several
awards for contributions as educator, inventor and entrepreneur, including
Technical Academy Award in Digital Cinematography by Academy of Motion
Pictures, Arts and Sciences
Prof. Ravi Mazumdar • University Research Chair
Professor, Department of Electrical and Computer Engineering, University of
Waterloo, Canada •
Fellow of the
Institute of Electrical and Electronics Engineers (IEEE) and Fellow of the
Royal Statistical Society
Dr. Kiran Mazumdar-Shaw • Chairman & Managing
Director, Biocon •
First generation
entrepreneur with more than 28 years experience in biotechnology and industrial
enzymes • Master Brewer, Ballarat
University, Australia • Awarded
the Padmabhushan, one of India’s highest civilian awards, for her pioneering
efforts in Biotechnology, 2005
Prof. Catherine Rosenberg • University Research Chair
Professor and Chairman, Department of Electrical and Computer Engineering,
University of Waterloo, Canada
Mr. John Shaw • Vice Chaiman, Biocon • Served in senior positions in
various locations around the world • Chairman, Madura Coats Limited between 1991-1998
Mr. Suresh Talwar • Partner, Crawford Bayley &
Company., an Indian law firm of repute. • Director, Cadbury India Limited, Birla Sun Life Insurance
Company Limited, L&T Limited • Area
of professional specialisation includes
corporate law and related fields • Legal counsel to numerous
Indian companies, multinational corporations and Indian/foreign banks
Established
in 1994 as a subsidiary of Biocon, Syngene is a chemical synthesis-driven
Custom Research Company (CRC). They are the first Indian biotechnology CRC to
receive special export status by the Government of India.
Lead by their synthetic
chemistry division, Syngene specialises in developing high value organic
molecules through multi-step synthesis involving diverse and complex
chemistries. Extending their expertise to molecular biology, they have also
developed an impressive capability to produce biopharmaceuticals through rDNA
technology using microbial, yeast and mammalian host systems.
Collaborative work underlines
Syngene's work ethos. Their team of highly skilled scientists closely interacts
with their global clients to offer them quality services with particular
attention to confidentiality, time-lines and cost-effectiveness.
Syngene
Syngene
is an internationally reputed Custom Research Company (CRC) with
multi-disciplinary skills in synthetic chemistry and molecular biology.
Leveraging the convergence of information technology and biotechnology, they
conduct high value R&D in early stage drug discovery and development for a
diverse global clientele.
A
subsidiary of Biocon, Syngene provides customised R&D services to the
pharmaceutical and biotechnology sectors, on a strong platform of
confidentiality and intellectual property protection. With state-of-the-art
facilities, dedicated connectivity and highly qualified researchers, they offer
their customers a powerful value advantage in the field of outsourced research
and development
Press release
Biocon
launches nano drug...
July
19, 2008
Publication:
Business Line
Expects to clock Rs.100.000 Millions in the first year
Biocon Ltd says it expects its just-launched breast cancer drug Abraxane to
become an Rs.1000.000 Millions product over three years.
The nano particle-based drug, unveiled here on Friday, is developed by Abraxis
Bioscience Inc and marketed by Biocon within the country and some more regions.
The paclitaxel protein and albumin bound medicine is available as a single-use
100 mg vial for intravenous administration. The drugs controller General of
India approved it in October 2007.
Addressing a news conference, Biocons chairwoman and Managing Director, Ms
Kiran Mazumdar-Shaw, called it a breakthrough therapy recommended as a safe,
`gold standard second line defence for patients for whom combination therapy
has failed or the tumour recurs after six months of chemotherapy. One breast
cancer cases are detected a year in India and 45,000 women die of it, she said,
adding that the medicine would be affordable, easily available and have fewer
side effects over certain alternatives.
Mr. Rakesh Bamzai, President Marketing, Biocon said the Rs.1000.000 Millions
domestic markets for taxanes was alarmingly heading towards double the size in
the next three years. Biocon expected to earn Rs.100.000 Millions in the first
year.
We want to build it into a Rs.1000.000 Millions product in the next 3-4 years.
We have also made sure it would be affordable. We will look at the other
taxanes and price it accordingly. A vial costs $400 (around Rs.17, 200)
compared with $1000 in the US (around Rs.43, 000).
Under an August 2007 marketing tie-up, Biocon is licensed to market, Abraxane
in India, Pakistan, Bangladesh, Sri Lanka, the UAE, Saudi Arabia, Kuwait and a
few more South Asian and Persian Gulf countries.
Biocon
and Abraxis BioScience Launch ABRAXANE in India for Treatment of Breast Cancer
BANGALORE,
India, & LOS ANGELES, Jul 18, 2008 (BUSINESS WIRE) -- Biocon
Limited, India's pioneering biotechnology company, and Abraxis BioScience, Inc.
(NASDAQ:ABII), a fully integrated biotechnology company, today announced the
launch of ABRAXANE(R) (paclitaxel protein-bound particles for injectable
suspension) (albumin-bound) in India for the treatment of breast cancer after
failure of combination therapy for metastatic disease or relapse within six
months of adjuvant chemotherapy. ABRAXANE is now available in India as a
single-use 100 mg vial (as a lyophilized powder, to be reconstituted for
intravenous administration).
In October 2007, ABRAXANE was approved by the Drug
Controller General of India. The approval was based on the clinical trial data
that was the basis of approval in the United States. The Phase III clinical
trial in the U.S. demonstrated that ABRAXANE nearly doubled the response rate,
significantly prolonged time to progression, and significantly improved overall
survival in the second-line setting versus solvent-based Taxol(R) in the
approved indication.
In the U.S. pivotal head-to-head trial, the overall response
rate of ABRAXANE was 33% vs. 19% compared to Taxol (P = .001), and ABRAXANE
achieved a 25% percent improvement in time to tumor progression (23.0 weeks vs.
16.9 weeks; hazard ratio = 0.75; P = .006) when compared to Taxol. Furthermore,
patients receiving ABRAXANE in the second-line setting had a significantly
prolonged survival by an additional 27% compared to solvent-based Taxol (56.4
weeks vs. 46.7 weeks; P = 0.24). The tolerability with ABRAXANE and Taxol was
comparable, despite the 50% greater dose of paclitaxel administered as
ABRAXANE.
"The launch of ABRAXANE in India represents a major
strategic step in our plan to provide safer and more effective cancer
treatments on a global scale," said Patrick Soon-Shiong, M.D., Chairman
and Chief Executive Officer of Abraxis BioScience. "In addition to India,
our marketing agreement with Biocon covers more than ten countries, and we are
working closely with national authorities throughout the region to receive
regulatory approvals and commence marketing activities as soon as
practicable."
"This launch provides breakthrough therapeutics to
cancer patients in India," said Kiran Mazumdar-Shaw, Chairman &
Managing Director of Biocon. "ABRAXANE is a significant advance in taxane
therapy for the treatment of breast cancer. This unique product eliminates the
need for chemical solvents and allows for higher doses of paclitaxel without
compromising safety and tolerability. The launch of ABRAXANE reiterates our
belief in strategic licensing partnerships to advance therapeutics in India,
and we take great pride in providing oncologists in India with the latest
treatment in breast cancer."
Ms. Mazumdar-Shaw noted that ABRAXANE is an important
addition to Biocon's Oncotherapeutics portfolio, which has already seen the
successful launch of its proprietary antibody, BIOMAb EGFR(TM) for the
treatment of head and neck cancers.
Neil Desai, Ph.D., Vice President of Research and
Development at Abraxis BioScience, said, "ABRAXANE is the first
nanotechnology based anti-cancer drug that is administered as albumin-bound
particles of approximately 130 nanometers and takes advantage of albumin, a
natural protein that acts as the body's key transporter of nutrients and other
water-insoluble molecules and accumulates in tumor tissues. The drug has
demonstrated superiority in progression free survival over both Taxol(R)
Injection and Taxotere (R) Injection in recent randomized clinical trials. The
initial clinical trials for ABRAXANE were conducted in India and we are very
satisfied to be able to bring this drug to the Indian patients through our
partner Biocon."
Rakesh Bamzai, President - Marketing, Biocon, said,
"Presently, more than 100,000 new cases of breast cancer occur in Indian
women every year. Breast cancer is the second largest cause of death among
women diagnosed with cancer in India. With the launch of ABRAXANE through
Biocon's innovation led Oncotherapeutics division and the growing need for this
drug in the country, we look forward to attaining market leadership in this
segment."
Cancer rates in India are lower than those seen in Western
countries, but are rising with increasing migration of rural population to the
cities, increasing life expectancy and changing lifestyles. The breast is the
second most common site of cancer in women after the cervix uteri. In the
metropolitan cities of New Delhi and Mumbai, it is the most common kind of
cancer in women. The annual age-adjusted rate (AAR) varies between the urban
and rural areas. In the urban areas, the AAR is 21.9 to 28.3 per 100,000,
whereas in rural areas, it is 8.6 per 100,000.
In August 2007, Abraxis established a licensing agreement
with Biocon for the commercialization of ABRAXANE in India. Under the terms of
the agreement, Biocon has the right to market ABRAXANE in India, Pakistan,
Bangladesh, Sri Lanka, the United Arab Emirates, Saudi Arabia, Kuwait and
certain other South Asian and Persian Gulf countries. Subsequently, Abraxis
received approval in October 2007 from India's Drug Control General to market
ABRAXANE in India.
ABRAXANE is approved for marketing in 35 countries. Abraxis
has several pending patent applications in India relating to ABRAXANE.
In the Asia-Pacific region, ABRAXANE is approved for
marketing in China and Korea in addition to India. ABRAXANE is under regulatory
review for the treatment of breast cancer by the Therapeutic Goods
Administration (TGA) in Australia, the Federal Authority for Healthcare and
Social Development Regulation in Russia, and the Ministry of Health, Labour and
Welfare in Japan.
About
ABRAXANE(R)
ABRAXANE(R) is a solvent-free chemotherapy treatment option
for metastatic breast cancer. Developed using Abraxis BioScience's proprietary
nab(TM) technology platform, ABRAXANE is a protein-bound chemotherapy agent,
which combines paclitaxel with albumin, a naturally-occurring human protein, to
deliver the drug and eliminate the need for solvents in the administration
process. Because solvents are eliminated, ABRAXANE allows for the delivery of a
49% higher dose compared to solvent-based paclitaxel (Taxol(R)) without
compromising safety and tolerability. ABRAXANE is administered in 30 minutes
(as compared to three hours for solvent-based paclitaxel).
ABRAXANE is currently in various stages of investigation for
the treatment of the following cancers: first-line metastatic breast, non-small
cell lung, malignant melanoma, pancreatic, and gastric. The most serious
adverse events associated with ABRAXANE in the randomized metastatic breast
cancer study for which FDA approval was based included neutropenia, anemia,
infections, sensory neuropathy, nausea, vomiting and myalgia/arthralgia. Other
common adverse reactions included anemia, asthenia, diarrhea, ocular/visual
disturbances, fluid retention, alopecia, hepatic dysfunction, mucositis and
renal dysfunction. For the full prescribing information for ABRAXANE, including
Boxed Warning, please visit www.abraxane.com.
ABRAXANE was developed by Abraxis BioScience and is marketed
in the United States under a co-promotion agreement between Abraxis and
AstraZeneca.
About
Biocon Limited
Biocon Limited is India's pioneer biotechnology enterprise
established in 1978. Biocon and its two subsidiaries, Syngene and Clinigene
form a fully integrated biotechnology enterprise, with specialized focus on
biopharmaceuticals, contract research and clinical research. Strategic international
acquisitions, such as acquiring a majority in the German pharmaceutical
company, AxiCorp, have given Biocon wider global access and greater market
penetration. Many of our products have USFDA and EMEA acceptance.
Biocon's proprietary technologies have been used effectively
in diabetology, oncology, cardiology, nephrology and other therapeutic
treatments. The company's robust drug discovery pipeline offers novel therapies
on a platform of affordable innovation. Biocon launched the world's first recombinant
human insulin, INSUGEN(R) in November 2004 using Pichia expression and India's
first indigenously produced monoclonal antibody BIOMAb-EGFR(TM) in September
2006. Visit the company at www.biocon.com
About
Abraxis BioScience
Abraxis BioScience is a fully integrated global
biotechnology company dedicated to the discovery, development and delivery of
next-generation therapeutics and core technologies that offer patients safer
and more effective treatments for cancer and other critical illnesses. The
company's portfolio includes the world's first and only protein-bound
chemotherapeutic compound (ABRAXANE), which is based on the company's
proprietary tumor targeting technology known as the nab(TM) platform. The first
FDA approved product to use this nab(TM) platform, ABRAXANE, was launched in
2005 for the treatment of metastatic breast cancer. Abraxis trades on the
NASDAQ Global Market under the symbol ABII. For more information about the
company and its products, please visit www.abraxisbio.com.
FORWARD-LOOKING
STATEMENTS
The statements contained in this press release that are not
purely historical are forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended. Forward-looking
statements in this press release include statements regarding our expectations,
beliefs, hopes, goals, intentions, initiatives or strategies, including
statements regarding the launch of ABRAXANE in India. Because these
forward-looking statements involve risks and uncertainties, there are important
factors that could cause actual results to differ materially from those in the
forward-looking statements. These factors include, without limitation, unexpected
safety, efficacy or manufacturing issues with respect to ABRAXANE; the need for
additional data or clinical studies for ABRAXANE; regulatory developments
(domestic or foreign) involving the company's manufacturing facilities; the
market adoption and demand of ABRAXANE, the costs associated with the ongoing
launch of ABRAXANE; the impact of pharmaceutical industry regulation; the
impact of competitive products and pricing; the availability and pricing of
ingredients used in the manufacture of pharmaceutical products; the ability to
successfully manufacture products in a time-sensitive and cost effective
manner; the acceptance and demand of new pharmaceutical products; and the
impact of patents and other proprietary rights held by competitors and other
third parties. Additional relevant information concerning risks can be found in
the company's Annual Report on Form 10-K for the year ended December 31, 2007
and in other documents it has filed with the Securities and Exchange
Commission.
The information contained in this press release is as of the
date of this release. Abraxis assumes no obligations to update any
forward-looking statements contained in this press release as the result of new
information or future events or developments.
Representative Offices:
Human
Resources
Phone: 91-80-28082808
Email: human.resources@biocon.com
Licensing/
Collaboration Opportunities
To submit licensing/collaboration opportunities enquiries:
Mr. Sandeep Rao
General Manager – Business Development
Phone: 91-80-28082070
Email: sandeep.rao@biocon.com
Healthcare
For business related and medical professional enquiries regarding
our cardiology and diabetology products:
Mr. KRL Rao
General Manager – Healthcare
Phone: 91-80-28082061
Email: krl.rao@biocon.com
Oncology
For business related and medical professional enquiries regarding
our oncology products:
Mr. Shukrit Chimote
General Manager – Oncotherapeutics
Phone: 91-80-28082161
Email: shukrit.chimote@biocon.com
Nephrology
For business related and medical professional enquiries
regarding their nephrology products:
Mr. Raghava Vempati
Head – Nephrology
Phone: 91-80-28082152
Email: raghava.vempati@biocon.com
Pharmaceuticals
For Domestic and Export enquiries on our Active
Pharmaceutical Ingredients (Bulk Drugs):
Ms. Preeti Dharmagoudar
Sr. Manager – Marketing
Phone: 91-80-28082808
Email: preeti.goudar@biocon.com
Contract
Research
For business related enquiries regarding our contract
research services:
Mr. Narendra Kumar R
General Manager – Business Development
Phone: 91-80-28083181
Email: narendra.kumar@syngeneintl.com
Clinical
Research
For business related enquiries regarding our clinical
research services:
Dr. Gaurav Mathur
Manager - Business Strategy & Regulatory Affairs
Phone: 91-80-28082732
Email: gaurav.mathur@clinigeneintl.com
Investor
Relations
For investor related queries :
Mr. Kiran Kumar
Company Secretary
Phone: 91-80-28082037
Email:investor.relations@biocon.com
Corporate
Communications
For media related queries:
Ms. Paula Sengupta
Head - Corporate Communications
Phone: 91-80-28082225
Email: corporate.communications@biocon.com
Ms. Sonia Sharma
Branch Head – Brodeur India
Phone: 91-80-40429047
Email: ssharma2@brodeurindia.com
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No 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 identify 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.42.40 |
|
UK Pound |
1 |
Rs.83.57 |
|
Euro |
1 |
Rs.66.02 |
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 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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. |
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 |
|