MIRA
INFORM REPORT
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Report Date : |
18.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
MATRIX LABORATORIES LIMITED |
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Registered Office : |
1-1-1151/1,
Sairam Towers, 4th Floor, Alexander Road, Secunderabad – 500 003,
Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
29.11.1984 |
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Com. Reg. No.: |
01-5146 |
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CIN No.: [Company
Identification No.] |
L24231AP1984PLC005146 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDM02247A |
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Legal Form : |
Public Limited
Liability Company. The company’s Shares are listed on the Stock Exchange. |
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Line of Business : |
Manufacturers of
Bulk Drugs, Formulations, Medicinal Chemicals and Botanical Products such as
Ibuprofen, Sulphamethoxazole, Pefloxacin, Ciproflxacion, Nimesulide and
Norfloxacin. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
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 48000000 |
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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 and reputed company having fine track records. Available information
indicates high financial responsibility of the company having fine track
records. Trade relations are fair. Payments are correct and as per
commitments. The company can
be considered good for normal business dealings at usual trade terms and conditions.
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LOCATIONS
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Registered Office : |
1-1-1151/1,
Sairam Towers, 4th Floor, Alexander Road, Secunderabad – 500 003,
Andhra Pradesh, India |
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Tel. No.: |
91-40-27700363/361/347/55327722 |
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Fax No.: |
91-40-27700343 |
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E-Mail : |
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Website : |
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Factory 1 : |
Survey No. 10, Gaddapotharam Village, Kazipally
Industrial Estate, Jinnaram Mandal, Medak District - 502 319, Andhra Pradesh,
India |
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Factory 2 : |
Survey No. 10 & 42, Gaddapotharam
Village, Kazipally Industrial Estate, Jinnaram Mandal, Medak District - 502
319, Andhra Pradesh, India |
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Factory 3 : |
Plot No.s 38, 39,
40, 49, 50 & 51 Phase - IV, IDA Jeedimetla, Hyderabad - 500 055, Andhra
Pradesh, India |
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Factory 4 : |
Plot No. 36, Phase - IV, IDA, Jeedimetla Quthubullapur
Mandal, R. R. District - 500 055, Andhra Pradesh, India |
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Factory 5 : |
Plot No. 16/B/1 S
V Co-operative Industrial Estate, Jeedimetla, Quthubullapur Mandal, R.R.Dist
- 500 055, Andhra Pradesh, India |
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Factory 6 : |
10/A, Model Industrial Estate,
Gaddapotharam, Jinnaram Mandal, Medak District, Andhra Pradesh, India |
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Factory 7 : |
Plot Nos. 14, 99 and 100, Chemical Zone,
Pashamylaram, Patancheru Mandal Medak District- 502 319, Andhra Pradesh,
India |
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Factory 8: |
G. Chodavaram Village, Poosapatirega
Mandal, Vizianagaram District - 535 204, Andhra Pradesh, India |
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Factory 9 : |
Plot No.45 A & B, Anrich Industrial
Estate, Bollaram, Medak District - 502 325, Andhra Pradesh, India |
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Factory 10 : |
Plot No.35/A, S. V. Co-operative
Industrial Estate, Jeedimetla, Hyderabad, Andhra Pradesh, India |
DIRECTORS
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Name : |
Mr. Robert J. Coury |
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Designation : |
Chairman cum Director |
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Name : |
Mr. N. Prasad |
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Designation : |
Vice Chairman cum Director |
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Name : |
Mr. Rajiv Malik |
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Designation : |
Managing Director and Chief Executive Officer |
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Name : |
Mr. C. Ramkrishna |
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Designation : |
Director |
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Name : |
Mr. K. R. V. Subrahmanian |
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Designation : |
Director |
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Name : |
Dr. Fred E. Cohen |
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Designation : |
Director |
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Name : |
Mr. Puneet Bhaatia |
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Designation : |
Alternate Director |
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Name : |
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Designation : |
Dr. C.
Satyanarayana |
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Address : |
Chief Operating
Officer |
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Date of Birth/Age : |
42 Years |
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Qualification : |
Ph.D in Chemistry |
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Experience : |
17 Years |
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Date of Appointment : |
03.02.2001 |
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Previous
Employment : |
Vorin
Laboratories Limited |
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Name : |
Prof. P. V. Indiresan
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Designation : |
Director |
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Name : |
Mr. S. Iswaran |
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Designation : |
Director |
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Name : |
Dr. Fred. E.
Cohen |
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Designation : |
Director |
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Name : |
Dr. Micheal
Wooldridge |
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Designation : |
Director |
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Name : |
Mr. Ong Beng Teck |
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Designation : |
Alternate
Director to Mr. S.Iswaran |
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Name : |
Mr. Ashish J.
Shastry |
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Designation : |
Alternate
director To Fred E. Cohen |
KEY EXECUTIVES
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Name : |
Mr. N. Anjaneyulu
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Designation : |
Company Secretary
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MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2008
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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SHAREHOLDING OF
PROMOTERS AND PROMOTER GROUP |
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Indian |
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Individuals / Hindu Undivided Family |
7677818 |
4.97 |
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Foreign |
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Bodies Corporate |
110024634 |
71.18 |
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Institutions |
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Mutual Funds/UTI |
488767 |
0.32 |
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Financial Institutions/Banks |
44186 |
0.03 |
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Foreign Institutional Investors |
24043919 |
15.55 |
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Non Institutions |
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Bodies Corporate |
879202 |
0.57 |
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Individuals |
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i Individual Shareholders holding Nominal Share Capital upto 0.100
Million Rs. |
8176320 |
5.29 |
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ii Individual Shareholders: holding Nominal Share Capital in excess of
Rs. 0.100 Million |
392190 |
0.25 |
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Any other
(Specify) |
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i. Non Resident Individuals |
1316610 |
0.85 |
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ii. Foreign Nationals |
1535502 |
0.99 |
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GRAND TOTAL |
154579148 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of
Bulk Drugs, Formulations, Medicinal Chemicals and Botanical Products such as
Ibuprofen, Sulphamethoxazole, Pefloxacin, Ciproflxacion, Nimesulide and Norfloxacin. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Active Pharmaceutical Ingredients |
MT |
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1136.49 |
806.21 |
GENERAL
INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
2002 |
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Bankers : |
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Rs.
In Millions |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Joint Statutory Auditors Rambabu and Company Chartered Accountants, 31 Pancom Chambers, Raj Bhavan Road,
Hyderabad - 500 082, Andhra Pradesh, India Deloitte Haskins and Sells Chartered Accountants, Lingapur House, 7th Floor, Amrutha
Estates, Himayathnagar, Hyderabad - 500 029, Andhra Pradesh, India |
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Associates: |
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Subsidiaries : |
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Joint Venture
: |
Medikon
Gelenicals Private Limited |
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Holding Company : |
Mylan
Laboratories Inc. (USA) |
CAPITAL STRUCTURE
As on 31.03.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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200000000 |
Equity Shares |
Rs. 2 each |
Rs. 400.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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154107805 |
Equity Shares |
Rs. 2 each |
Rs. 308.215
Millions |
Notes:
Of the above Equity Shares :
14999350 shares represent after subdivision of
2999870 Equity Shares of Rs. 10/- per share which were issued as fully paid up
to the shareholders’ of the erstwhile Vorin Laboratories Limited, Medicorp
Technologies India Limited, Vera Laboratiries Limited, Fine Drugs and Chemicals
Limited, Medikon Laboratories Limited and Calibre Engineering Private Limited
on their respective amalgamation with the Company, for consideration other than
cash.
74841605 shares were issued as fully paid
bonus shares by utilization of Rs. 149.680 Millions from Securities Premium
account.
110024352 shares (31.03.2006-Nil) are held by
MP Laboratories (Mauritius) Limited, a wholly owned subsidiary of Myloan
Laboratories Inc, the Ultimate Holding Company.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
308.240 |
307.260 |
299.470 |
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2] Stock Option |
88.370 |
53.160 |
5934.090 |
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3] Reserves & Surplus |
9388.770 |
8333.870 |
6.480 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
9785.380 |
8694.290 |
6240.040 |
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LOAN FUNDS |
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1] Secured Loans |
2230.840 |
1515.420 |
394.900 |
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2] Unsecured Loans |
39.350 |
42.460 |
65.720 |
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TOTAL BORROWING |
2270.190 |
1557.880 |
460.620 |
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DEFERRED TAX LIABILITIES |
375.390 |
329.380 |
175.230 |
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TOTAL |
12430.960 |
10581.550 |
6875.890 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4374.550 |
3615.400 |
3323.550 |
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Capital work-in-progress |
247.820 |
556.680 |
387.520 |
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INVESTMENT |
5073.960 |
3440.370 |
1594.930 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
2181.660
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1958.430 |
1710.100 |
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Sundry Debtors |
2095.930
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2032.340 |
1367.440 |
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Cash & Bank Balances |
493.460
|
177.750 |
87.590 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
1318.050
|
2125.780 |
1260.730 |
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Total
Current Assets |
6089.100
|
6294.300 |
4425.860 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2550.160
|
2370.270 |
2045.970 |
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Provisions |
804.310
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954.930 |
810.000 |
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Total
Current Liabilities |
3354.470
|
3325.200 |
2855.970 |
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Net Current Assets |
2734.630
|
2969.100 |
1569.890 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
12430.960 |
10581.550 |
6875.890 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
7495.060 |
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Income from Potential patent infringement suit |
268.390 |
268.390 |
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Conversion Income |
72.660 |
4.420 |
6522.900 |
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Other Income |
163.720 |
1312.840 |
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Total Income |
7999.830 |
8257.010 |
6522.900 |
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Profit/(Loss) Before Tax |
1075.150 |
2117.190 |
1609.940 |
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Provision for Taxation |
79.020 |
293.390 |
307.27 |
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Profit/(Loss) After Tax |
996.130 |
1823.800 |
1302.670 |
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Earnings in Foreign Currency : |
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FOB Value of Exports |
4994.260 |
3902.660 |
115.080 |
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Potential Patent Infringement Suit |
268.390 |
268.390 |
0.000 |
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Total Earnings |
5262.650 |
4171.050 |
115.080 |
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Imports : |
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CIF Value of Imports |
2569.730 |
2473.440 |
3404.220 |
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Total Imports |
2569.730 |
2473.440 |
3404.220 |
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Expenditures : |
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Manufacturing Expenses |
787.090 |
694.710 |
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Personnel Expenses |
598.380 |
480.000 |
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Administrative Expenses |
491.020 |
508.410 |
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Research and Development Expenditure |
800.920 |
311.190 |
11344.870 |
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Raw Material Consumed |
3847.160 |
3862.010 |
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Interest |
154.010 |
81.500 |
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Depreciation & Amortization |
250.710 |
223.420 |
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Expenses Capitalised |
[4.610] |
[21.420] |
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Total Expenditure |
6924.680 |
6139.820 |
11344.870 |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
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Sales Turnover |
2061.000 |
2132.300 |
2757.200 |
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Other Income |
161.300 |
41.400 |
38.300 |
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Total Income |
2222.300 |
2173.700 |
2795.500 |
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Total Expenditure |
1787.700 |
1823.300 |
2195.900 |
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Operating Profit |
434.600 |
350.400 |
599.600 |
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Interest |
47.700 |
55.900 |
79.700 |
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Gross Profit |
386.900 |
294.500 |
519.900 |
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Depreciation |
74.500 |
71.400 |
74.000 |
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Tax |
7.000 |
86.700 |
10..700 |
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Reported PAT |
257.900 |
136.400 |
343.500 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
0.21 |
0.14 |
0.32 |
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Long Term Debt-Equity Ratio |
0.00 |
0.01 |
0.14 |
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Current Ratio |
1.10 |
1.23 |
1.18 |
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TURNOVER RATIOS |
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Fixed Assets |
1.46 |
1.50 |
1.79 |
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Inventory |
3.74 |
3.72 |
4.49 |
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Debtors |
3.75 |
4.02 |
5.75 |
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Interest Cover Ratio |
7.34 |
15.16 |
20.63 |
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Operating Profit Margin(%) |
19.30 |
24.61 |
28.35 |
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Profit Before Interest And Tax Margin(%) |
16.06 |
21.34 |
25.47 |
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Cash Profit Margin(%) |
16.09 |
20.40 |
22.49 |
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Adjusted Net Profit Margin(%) |
12.86 |
17.13 |
19.61 |
|
Return On Capital Employed(%) |
11.23 |
17.25 |
32.07 |
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Return On Net Worth(%) |
10.86 |
15.72 |
32.52 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was
incorporated on 29th November, 1984 at Secunderabad in Andhra
Pradesh under the name and style of “Herren Drugs & Pharmaceuticals
Limited” having Company Registration Number 5146.
The name of the
company has been changed from Herren Drugs & Pharmaceuticals Limited to
Matrix Laboratories Limited as per provision of the Companies Act, 1956.
The company was
jointly promoted by Mr. Sarat Gopal and Mr. Krishna Prasad. Mr. Sarat Prasad
has also promoted companies like Dolphin Drugs Private Limited, United
Intermediaries & Chemicals Private Limited, Dymes Exports, etc.
The company entered
into diversification arena by manufacturing formulations such as tablets,
capsules, etc. at a cost of Rs. 131.50 millions and this was financed by a
maiden public issue of Rs. 54.50 millions in 1994.
In 1998-99, Dolphin
Drugs Private Limited and United Intermediaries & Chemicals Private Limited
has been amalgamated with the company.
During 2001-2002,
the company has acquired 100% controlling interest in Medikon Laboratories
Limited a Hyderabad based Formulation company at a consideration of Rs. 14.700
millions. It has upgraded its
manufacturing facilities to the CGMP standards in Jeedimetla plant during the
year. In 2002-03 the company has acquired 21% stake in Medicorp Technologies
from Shriram Group. Further to this, it
had made an open offer and has further acquired 3.47% of equity at a cost of
Rs. 23 per share. It has also acquired
Vorin Laboratories viz a subsidiary of Ranbaxy Laboratories. The amalgamation between three companies was
approved by the Shareholders and appointed date was on 1st April
2002. The shareholders of Vorin and
Medicorp were issued shares in the company in the ratio of two shares for every
13 shares held.
The company
commercialized 14 new products in 2002-2003 and 30 APIs under development in
the pipeline.
The company has strengthened its business in 2003-2004 through the merger of Vera Laboratories Limited with the company in exchange for a synergy in manufacturing capacity, product profile and effluent handling facilities. Consequent of this acquisition, Matrix has emerged as one of the largest USFDA approved API manufacturers in India.
As per the Scheme of amalgamation, for every 163 Equity Shares of Rs.10/- each
held by the shareholders of Vera Laboratories Ltd, One Equity Share of Rs.10/-
each of Matrix Lab have been issued. Apart from Vera Lab,the company has also
amalgamate Fine Drugs & Chemicals Ltd and Calibre Engineering Pvt Ltd with
itself.As per the scheme of amalgamation,i) for every Twenty Five Equity Shares
of Rs.10/- held by the shareholders of Fine Drugs & Chemicals Ltd, One
Equity Share of Rs.10/- each of the company have been issued, ii)for every
Eight Equity Shares of Rs.100/- each held by the shareholders of Calibre
Engineering Pvt Ltd, One Equity Share of Rs.10/- each have been issued
Robert J. Coury
Chairman
Robert J. Coury was elected to the Board of Directors of Mylan
Laboratories in 2002 and currendy serves as Vice Chairman. Mr. Coury also
serves as Mylan's Chief Executive Officer, a position he has held since 2002.
In addition, he is a member of the Mylan Finance Committee.
Prior to joining Mylan, Mr. Coury was the principal of Coury Consulting
L.P., Pittsburgh, Pennsylvania, a corporate strategy advisory firm he formed in
1989. Among his accomplishments, Mr. Coury led the $181 million sale/business
combination of Crown Communications to Castle Tower, Houston, Texas. Following
the sale, Mr. Coury served on the board of the company's largest subsidiary,
which was responsible for its United States operations. Later, he was
instrumental in the company's SI 82 million initial public offering and listing
on Nasdaq. Today, Crown Castle International Corp. trades on the New York Stock
Exchange under the symbol "CCT."
In addition to his business commitments, Mr. Coury is an active
participant in civic activities, especially those focusing on the promotion of
economic development. Most recently, Mr. Coury assisted community leaders in
the successful effort to secure a minor league professional baseball team for a
newly constructed stadium in Washington Count}1, Pennsylvania. He also serves
as a member of the Allegheny Conference on Community Development.
Mr. Coury received a bachelor of science in industrial engineering from
the University of Pittsburgh in 1984.
Mr. N. Prasad
Vice Chairman
Mr. N. Prasad currently serves as the Non-Executive Vice Chairman at
Matrix. Upon the successful completion of the Mylan-Matrix transaction, Mr.
Prasad joined the executive team at Mylan Laboratories as the Head of Global
Strategies in the Office of the CEO. He also serves on Mylan's Board of
Directors.
Mr. Prasad began his career in 1984 as a Management Trainee with the
Indian Molasses Company. In 1989, he joined the India division of Rhone Poulenc
Chemicals, a French chemical and pharmaceutical company now known as
Sanofi-Aventis, as an Area Sales Officer. He was soon promoted to Regional
Sales Manager and was based in Hyderabad. In 1995, he became Managing Director
of the active pharmaceutical ingredient (API) manufacturer Vorin Laboratories
Limited.
Mr. Prasad steered the transformation of Matrix Laboratories from a $1
million (market capitalization) API company into a $1 billion global
pharmaceutical business in a span of only six years. Among other recognition,
the Indian equity research firm Motilal Oswal Securities presented the
"Fastest Wealth Creator" award to Matrix Laboratories in 2004, 2005
and 2006.
Mr. Prasad earned a degree in science from Delhi University and an MBA
from the Institute of Management and Technology at Ghaziabad, India.
Mr. Rajiv Malik
Managing Director & Chief Executive Officer (CEO) Mr. Rajiv Malik,
the Managing Director & Chief Executive Officer of Matrix Laboratories,
brings with him over 24 years of experience in global generic pharmaceutical
industry. Prior to joining Matrix, Mr. Malik was associated with Sandoz, the
global generics arm of Novartis, as its Head of Global Development and
Registration, based at Vienna, Austria.
At Sandoz, Mr. Malik was responsible for its worldwide product flow,
global project management, development strategy tor R&D, besides overall
planning, strategising, budgeting and resource allocation and necessary
interaction with the customers. He was also responsible for overseeing the
network of eight development centers of Sandoz worldwide.
Mr. Malik had a 20 year stint with Ranbaxy Laboratories Limited before
joining Sandoz in 2003, during which he served as the head of Pharma Research
and Global Regulatory Affairs. At Ranbaxy, Mr. Malik's responsibilities
included development and registration of generics for US, F_urope,
Australia,New Zealand, Latin America and China.
Mr. Malik has a Masters in Pharmacy from Punjab University. With about
60 formulation process patents and 10 publications in pharmaceutical journals to
his credit, Mr. Malik has a comprehensive knowledge of global regulatory
matters in the pharmaceutical industry. He is a member of the Regulatory
Affairs Professional Society, USA.
Mr. C.
Ramiikrishna
Director
Mr. C. Ramakrishna currently serves as a non-executive director on the
Board of Matrix and advises the Company on all strategic issues in the capacity
of a Corporate Advisor.
Mr. Ramakrishna is a reputed Management consultant based in Hyderabad,
with an experience of over two decades in various facets of Finance and General
Management. Mr. Ramakrishna is a professionally qualified Chartered Accountant
of the Institute of Chartered Accountants of India and Cost Accountant of the
Institute of Cost and Works Accountants of India.
Mr. Ramakrishna was appointed as a Director on the Board of Matrix
Laboratories Limited in February 2001, as a Whole Time Director (WTD) in April
2003 and continued as WTD up to October 2004. As a WTD he occupied the position
of Executive Vice President – Corporate Finance and Corporate Services heading
the areas of Finance, Accounts, Corporate Affairs, Insurance and Legal. Under
his guidance, the Company has successfully handled Amalgamations, Preferential
Issues, Bonus Issue, Sub-division etc.
Mr. K.R.V. Subruhnianian
Director
Mr. K.R.V. Subrahmanian holds a B.A. Hons. Degree in Economics from the
University of Madras and has received management education from Urwick Orr and
Partners, UK and the Columbia University, USA. He has over 51 years of
industrial/commercial experience and was from 1969 with Colour-Chem Ltd. (then
an associate of Bayer AG and Hoechst AG) till his retirement from the position
of Vice Chairman and Managing Director in 1995. He continued as a non-executive
independent Director of Colour Chem Ltd till 23rd March, 2006. His functional
experience covers Commercial and General management.
He is presently on the Boards of Corporates in the fields of Banking
(ING VYSYA) Mutual Fund (DSP MERRILL LYNCH), Polymers (LanxessABS) Chemicals
(two of Bayer Group of Companies), Pharmaceuticals (MATRIX) and Ferrous metal
related industries (SESA Goa- a MITSUI Company which is the largest exporter of
Iron Ore from India).
Dr. Fred E. Cohen
Director
Dr. I-'red E. Cohen is a Professor, University of California, San
Francisco, Departments of Cellular & Molecular Pharmacology, Medicine and
Biochemistry & Biophysics. He was a fellow of Postdoctoral Research in
Department of Pharmaceutical Chemistry at University of California. Dr. Cohen
has a rich experience in the global pharmaceutical industry as a member of
Scientific Advisory Boards ot several companies. He was also a consultant to
F7.li T jlly & Co., Indianapolis, IN. Dr. Cohen has filed several patents
and has several research publications to his credit and has received various
awards and honours for his contribution in academics and public service.
Mr.
Puneet Bhatia
Alternate Director
Mr. Puneet Bhatia is Managing Director of TPG Capital India Private Limited.
Prior to this, Mr. Puneet was the Chief Executive, Private Kquity Group for GK
Capital India. He was responsible for conceptualising and creating GE Capital's
direct and strategic private equity investment group in India and handled a
portfolio of almost a doxen companies aggregating investments of close to
US$100 million, in companies like TCS, Patni Computers, BirlaSoft, Sierra
Atlantic, iGate, Indus Software and Rediff. He was also responsible for
consummating some of GE's joint ventures in India. Prior to this, he was with
ICIC1 (from 1990 to 1995) and with Crosby Securities (1995 to1996).
Mr.Puneet Bhatia has a 13.Com 1 lonours degree from the Sriram College
of Commerce, Delhi and an MBA from the Indian Institute of Management,
Calcutta.
Directors Report
The Company has achieved net revenues of Rs. 7495.06 Millions for the
year ended 31st March, 2007 compared to Rs. 6671.36 Millions in the previous
year. The profit after tax (PAT) for the year declined by 45% to Rs. 996.13
Millions from Rs. 1823.80 Millions in the previous year. Previous year profit
after tax includes exceptional income to the extent of Rs 685.90 Millions.
Without exceptional income the profit after tax for the previous year is at Rs
1,137.90 Millions. The decline in the profit after tax is primarily due to
increased R & D spends and higher interest cost.
During the year, the company successfully completed US FDA audits of API
manufacturing facilities located at Vizianagram (Unit VIII), Kazipally (Unit
I), feedimetla (Unit 111) and FDF manufacturing facility at Nashik. With these
approvals, all API and FDF manufacturing facilities of the company are approved
by US F'DA.
During the year, 28 regulatory filings for finished dosages forms were
made, out of which 12 filings
are ANDAs with US FDA. 3 ANDAs were approved by US F'DA and 2 more
approvals have been received for the
dossiers filed with the European Regulatory agencies during the year.
Apart from the above, 25 US Drug Master Files (DMFs) and 12 EU DMFs were also
filed by the Company, during the year.
During the year; Mylan Laboratories Inc., a leading pharmaceutical
company in USA, has acquired a
controlling interest in the Company. MP Laboratories (Mauritius)
Limited, a wholly owned subsidiary of Mylan Laboratories Inc., USA ('the
Acquirers') entered into a Share Purchase Agreement (SPA) with key shareholders
of the Company viz., Mr. N. Prasad, N. Prasad- HUF, G2 Corporate Services
Limited, India Newbridge Investments Limited, India Newbridge Partner I'D I
Limited, India Newbridge Coinvestmeiit Limited, Maxwell (Mauritius) Pte Limited
and Spandana Foundation ('Selling Shareholders'), to purchase up to
approximately 51.5% of the paid-up share capital of the Company. Thereafter,
the Acquirers made a public announcement of an open offer for acquiring up to
20% of the paid-up share capital of the Company in terms of Regulations 10 and
12 of the SEBI (SAST) Regulations. On completion of the open offer and closing
of the SPA, MP Laboratories (Mauritius) Limited
are holding approximately 71.5% of the paid-up share capital of the
Company. Consequently, the Company became a subsidiary of MP Laboratories
(Mauritius) Limited, with effect from 8th January, 2007.
They expect that the Company will derive advantages in terms of
economies of scale by supplying a number of APIs to Mylan Laboratories, in
addition to its present business with third party customers. Further, the
Company will also be benefited in the development and manufacture of finished
dosage forms, due to association with Mylan.
Since the close of the financial year, Mylan Laboratories Inc., has
signed a definitive agreement to acquire the generics business of Merck KGAa,
Germany. The Directors are confident that the synergistic benefit of this
acquisition will also flow to the Company in due course.
Roles on Subsidiaries
The Company has 26 subsidiary companies (including step down
subsidiaries) as on 31st March, 2007. The Members may refer to the Statement
under Section 212 of the Companies Act, 1956 for further information on these
subsidiaries.
In terms of approval granted by the Central Government under Section 212
(8) 6f the Companies Act, 1956, copy of the Balance Sheet, Profit and Loss
Account, Report of the Board of Directors and Auditors of the subsidiaries have
not been attached with the Balance Sheet of the Company. Shareholders desirous
to obtain a copy of the said documents of the Company's subsidiaries may write
to the Company Secretary.
Notes on joint Ventures
As you are aware, the Company during the financial year 2005-06, in
collaboration with Aspen Pharmacare Holdings Limited (Aspen), a South African
Pharmaceutical Company has formed two joint ventures, one each in India and
South Africa. The two joint ventures are as under:
• Astrix Laboratories Limited, India
• Fine Chemicals Corporation (Pty) Limited, South Africa
Astrix Laboratories limited (Astrix)
During the year, Astrix has recorded a total turnover of Rs. 2289.93
Millions, with a net profit of Rs. 139.99 Millions. The Company's share in
Astrix is to the extent of 50%.
Fine Chemicals Corporation (Pty) Limited (I
'('.C)
During the year FCC has recorded a total turnover of Rs. 1405.21
Millions, with a net profit of Rs. 280.23 Millions.
The Company's share in FCC is to the extent of 50%.
Report on Corporate Governance
The detailed Report on Corporate Governance forms part of this Annual
Report.
Management Discussion and Analysis Report
The Management Discussion and Analysis Report (MDA) of the Company is
discussed elsewhere in this Annual Report.
The Global Generic
Pharmaceutical industry
The global generic pharmaceutical industryA generic formulation contains
the same APIs as an innovator drug and is therapeutically equivalent. Generic
formulations are typically marketed in regions where their sales are not
prohibited by patent protection or products where patents or other regulatory
protections of the relevant innovator drug have expired. Given that generic
drugs require less investment in research and development and have a
significantly faster time to market than innovator drugs, they are generally
priced significantly below their innovator drug equivalent, providing a
cost-effective treatment alternative.
In most countries generics are predominately marketed under their
chemical name. However, in certain markets, generics are commonly marketed
under a brand name to stimulate brand loyalty and sustain higher pricing.
Typically, multiple generic versions of a drug are sold in a given market. Consequently,
generic drugs are not only cheaper but also compete on price to a greater
extent than innovator drugs. The generic drug market is characterised by a
significant price erosion, with market growth coming from the entry of new
generic drugs and from the increased penetration of generics in the overall
pharmaceutical market.
The large number of patent expirations fuelled the growth of the generic
pharmaceutical market. According to the latest data from Datamonitor (as reported
in the Generics: Global Industry Guide, September 2005), total global generic
pharmaceutical sales in 2005 stood at US$ 52.2 billion. According to the
Generics: Global Industry Guide (September 2005), the industry has grown at an
annual rate of 14.3 per cent from 2000 to 2004 and has an expected compounded
annual growth rate over the next five years of 14.5 per cent. In addition to
patent expiries,
other significant drivers fuelling this growth of the generics market
include:
• Global proliferation of legislation and regulation permitting,
incentivising or requiring pharmacists to substitute generics equivalents for
innovator Pharmaceuticals.
• Pressure from governments, managed care and other third party payers
on health care providers and consumers to minimize costs.
• Increased acceptance of generic pharmaceuticals by physicians,
pharmacists and consumers.
The US generic pharmaceuticals market is the largest in the world
representing approximately 41 per cent or US$ 28 billion of the global market
for generic drugs, according to Espicom Business Intelligence 2006 and is
expected to grow at a compound annual growth rate of 10.9 per cent over the
next five years. According to the same source, generic drugs now account for
approximately 51 per cent by volume and approximately 8 per cent by value of
all drugs prescribed in die United States.
As the largest generics market in the world, the United States attracts
significant competition resulting in a more rapid price erosion than the other
markets. As a result, generic drug companies in the United States are
increasingly finding it necessary to develop competitive advantages such as:
• Aggressive challenging of patents with para IV filings to attempt to
gain a 180-day exclusivity period.
• Focusing on "difficult to manufacture" products.
• Sourcing from the lowest cost producers to facilitate price
competitiveness (this is driving an increasing number of pharmaceutical majors
to source products from low-cost countries including India).
• IP filing by generic, companies as an entry barrier to competition
• Vertical integration
In Europe, market penetration rates for generics vary significantly by
country and are generally lower than the United States. Market penetration of
generics is the highest in the well developed generics markets of the United
Kingdom and Germany but is low in Southern European countries such as France,
Spain and Italy.
In the United Kingdom, approximately 58 per cent of prescriptions are
dispensed generically, representing around 26 per cent by value; in Germany
generics account for approximately 47 per cent of prescriptions representing
around 28 per cent by value and in The Netherlands, generics account for
approximately 47 per cent by volume and around 23 per cent by value (source:
Espicom Business Intelligence). By contrast, in France generics account for
approximately 14 per cent of the total pharmaceutical market by volume and
approximately 8 per cent by value, while in Spain generics account for
approximately 8 per cent by volume and approximately 6 per cent by value. The
governments in Europe are increasingly focusing On growing the penetration of
generics as a means to manage healthcare costs. Many European markets are
growing more rapidly than the US market, especially those countries with lower
generic penetration rates, including France, Spain and Italy, which are
projected to grow at a compound annual growth rate of approximately 20 per
cent, 25 per cent and 15 per cent respectively. Additionally, each European market
requires differing strategies due to different levels of branding versus
non-branding of generic drugs, as well as differences in product packaging,
reimbursement systems and drug distribution infrastructure.
The ability to introduce generic substitutes in the quickest possible
time after an innovative pharmaceutical product loses its patent protection is
one of the key determinants of success for generic pharmaceutical companies
like Matrix. As a result, robust generic product pipelines are an important
factor in the generics industry, as are economies-of-scale due to the price
competitiveness of the generics market.
Indian Scenario
Indian drug companies produce over 22 percent of the world's generic drugs
and account for 23 percent of generic approvals since December 2006. In
addition to this, more than 50% of the new DMF filings with USFDA in 2006 are
by Indian companies.
There are reasons to be sanguine of the prospects of the industry over
the longer term. Key factors for the success in the global marketplace continue
to remain in place: compliance with stringent regulation, established
skill-sets in chemistry, competitiveness on the cost front, and, finally, an
encouraging pipeline of launches, especially among the majors, in the
remunerative US and European markets.
Going with the trend of M&A and strategic alliances; Indian Pharma
space was the hotbed for multi-billion dollar deals in API manufacturing,
Formulations manufacturing and R&D space. Most global majors now have a
presence in India and are rapidly expanding their base.
The geographical expansion that Indian pharma Companies have undertaken
is also significant. Indian firms have targeted markets in Europe, South Africa
and Africa through organic or inorganic means.
Scenario at Matrix
2006 was a watershed year for Matrix in all ways, in line with the
company's stated strategy to build a strong presence in the regulated markets.
Mylan and Matrix entered into a strategic partnership where Mylan purchased
71.5% of Matrix's shares in one of the biggest deals in the generic
pharmaceutical space. Integration of Matrix with Mylan has been very
successful. This transaction would bring new opportunities in the areas of APIs
and Finished Dosage Forms (PDF) to Matrix. The economies of scale derived from
larger scale will not only benefit Mylan but also third party API customers of
Matrix. This strategic development will help Matrix to derrick from the
volatility associated with the API business and will throw open a number of
opportunities in the area of development and manufacture of PDF for global
marketing by Mylan.
During last year, Matrix also intensified the efforts to integrate its
affiliate companies including Concord Biotech Limited (Concord), Mchem Pharma
Group Limited (Mchem) and Docpharma into the Matrix table. Docpharma provides
the Matrix - Mylan combine with a presence in some parts of EU.
The Anti Retro Viral business continues to remain an area of prime focus
for Matrix. Even though the market witnessed sharp price cuts for most of the
first line products, volumes continued to grow. Matrix has made significant
investments in building resources for the Anti-AIDS business. Matrix is today
one of the few players in the world that are completely integrated right from
the intermediate stage to the finished dose stage for ARV products. With
presence across all the Access markets through partners / on its own in the
future, the Mylan-Matrix combine in the future is ideally poised to partner with
international programs to bring lower-cost solutions to patients in those parts
of the world most severely stricken by HIV in regions currently
under-penetrated by the pharma industry.
Opportunities
& Threats / Risks & Concerns
The next five years could see more than 70 major drugs come off-patent
in the major markets of the US and Europe. Patent expiries of blockbusters like
Risperdal, Effexor, Fosamax, Prevacid, Nexium, Pantozol and Cozaar will drive
growth for generic companies in the regulated markets.
The ARV business continues to grow and Matrix has braced itself to play
a significant role in this segment. Our focus on drugs in the second line
therapy will also stand us in good stead as the shift from second line to first
line intensifies in future.
On the flip side, the generic as well as ARV business continue to be
fiercely competitive with the number of Indian andChinese players in this space
increasing. Margins will continue to shrink and only vertically integrated
players with the ability to exit last from the market will survive.
Indian generic companies will also focus on newer territories,
especially in the emerging markets, outside of US and Europe.
Generic APIs:
Generic API product segment contributed 33% of total sales for both the
periods. The growth in this segment constituted 43% over the previous year.
The growth in this segment is attributable to supply of certain generic
APIs to both US and European markets, in addition to the retention of the
market share for Citalopram. Further, Amplodipine besylate API which has been
supplied to Mylan for its generic launch in the US has been a significant value
driver.
Anti-retro Virals
(ARVs):
ARV API product segment contributed 21% of total sales for the financial
year 2007 as compared to 24% of total sales for the financial year 2006. The
growth in this segment constituted 21% over the previous year.
The segment sales includes the
income derived from supplying both first and second line ARVAPIs to domestic as
well as international customers.
Finished Dosage
Forms:
Significant amount of the revenues under this product group segment is
contributed by Docpharma N.V., a 100% subsidiary of the company. The company
operates in the generic markets of Belgium, Netherlands, and Luxembourg. Net
sales of Docpharma under this product group segment stood at Rs. 3.777 Millions
for FY07 as against Rs.2.471 Millions recorded in the previous year. As
Docpharma was acquired in July 06, the financials of FY06, had income from
Docpharma approximately for 9 months. Hence, the growth is strictly not
comparable.
Further, during the year FY07, Matrix India realized certain milestone
payments against development of Finished Dosage Forms, from Mylan and other
third party customers. The same forms part of this product group.
Hospital business:
Revenues under this product group segment are contributed by the Medical
devices/hospital business of Docpharma N.V., a 100% subsidiary of the company.
Net sales of Docpharma under this product group stood at Rs. 2.209
Millions for FY07 as against Rs. 1.654 Millions recorded in the previous year.
As Doc pharma was acquired in July 06, the financials of FY06 had income from
Docpharma approximately for 9 months. Hence, the growth is strictly not
comparable. However, the sales of Aprime and AB Medical - two entities of
Hospital division were adversely impacted in the second half of FY07, due to
consolidation between AUegran and Inamed. Products of Inamed were earlier
distributed by Aprime and AB Medical accounting for 70% of their revenues.
Growth in sales is 42.2% YoY.
EBITDRA:
In FY06, the company had certain exceptional income and hence EBITDRA of
FY07and FY06 are not comparable.
EBITDA:
During the full year FY07, the lower EBITDA is primarily due to lower than
expected earnings from Doc pharma NV, a subsidiary of the company and higher
R&D spend. During FY07, Docpharma's results were lower than expected, due
to price erosion for key products in pharmaceutical business, initial costs
incurred for the entry into new markets as well as lower margins in Hospital
business.
pharmaceutical business via Contract Manufacturing opportunities. This
business group contributed approximately 7% of total sales for the both
periods. The growth of this business constituted 36% over the previous year.
The growth is attributable to the projects initiated with leading pharma
companies over the period of time.
Financial review
Key financial items are given below as per Indian GAAP consolidated for
the financial year i.e., FY2007 compared to previous year FY2006
During the year, the R&D spend was at Rs. 1.008 Millions, showing an
increase of 156% over the previous year. The increase in R&D expenses is
due to development of more number of APIs as well as ramping up of the Finished
Dosage Development and filings. The Finished Dosage Development team was set up
during the middle of financial year FY06 and in the first full year of
operation in the financial year FY07, the company has made 28 Regulatory
Filings. Of this 12 ANDAs have been filed with US FDA, 6 with the European
regulatory
agencies and 10 with WHO.
Depreciation & Amortisation:
Depreciation and Amortisation increased by 61.5% to Rs. 541 Millions in
FY07 from Rs. 335 Millions in FY06. The increase is primarily on account of
subsidiaries/Joint ventures, which got consolidated in FY06 only for
short-period from the date of acquisition of respective subsidiaries/Joint
Ventures.
Notes
Notes to the
Balance Sheet & Profit and Loss Account
1. Contingent
Liabilities
a)
Claims against the Company not acknowledged as debts:
• Excise Duty, Sales Taxes and Indirect Taxes claims disputed by the
Company relating to issues of applicability and classification aggregating to
Rs. 65.87 Millions (31st March 2006:
Rs.78.74 Millions)
• Local Authority Taxes
claims disputed by the Company relating to issues of applicability and
determination aggregating Rs. 3.71 Millions (31st March 2006: Rs. 3.71 Millions)
• Third Party claims
arising from disputes relating to contracts aggregating Rs. 3.44 Millions (31st March 2006: R.rJ.22 Millions)
b) Bills discounted with banks: Rs. 421.16 Millions (31st March 2006: Rs. 528.53 Millions)
c) Corporate Guarantee to ABN Amro Bank NV onbehalf of Matrix
Laboratories NV for loans availed
by the latter towards acquisition of Docpharma N V: Rs. 9,558.43MiUions (31st
March 2006: Rs. 8,907.5}
Millions). The loans so
availed are further secured by pledge of the Company's entire holding in Matrix
Laboratories NV and Matrix Laboratories NV's holding in Docpharma NV.
d) Corporate Guarantee to Rabo Bank Singapore and ABN Amro Bank NV
Singapore towards issuanceof Standby Letter of Credit (SBLC) for Mchem Pharma
Group Ltd. : Rs. 608.18 Millions. (31st
Mcnh 2006: Xil)
e) Uncalled Liability in respect of pardy paid shares: Rs. 30 Millions (31st March 2006: Rs. 48 Millions).
Secured Loans
& I . nsccurccl Loans
a) Working Capital facilities availed from State Bank of India, Andhra
Bank, The Bank of Nova Scotia, ABN Amro Bank and HDFC Bank are inter alia
secured by way of paripassu first charge on the current assets and pan
passu second charge on fixed assets both present and future. Working
Capital facilities from Rxport Import Bank of India are secured by first charge
on the Company's moveable fixed assets.
b) Amounts repayable within twelve months in respect of unsecured loans:
Rs.3.09 Millions (31st March 2006
Rs. 3. 1 1 Millions)
Utilisation from Securities Premium Account of Rs.Nil (31st March 2006: Rs.60.78 Millions) represents
expenditure incurred in connection with proposed raising of capital.
Investment
The following Current Investments were sold during the year:
- 3,700,288.79 Units of HSBC Mutual Fund – HSBC cash Fund Institutional Dividend
Plan - Carrying cost as at 31 March 2006: Rs. 37.02 Millions
- 68,447.51 Units of DSP Merrill 1 .ynch Mutual Fund, Liquidity Fund,
Daily Dividend Plan C - Carrying
cost as at 31 March 2006: Rs. 68.46 Millions
- 6,858,361.39 Units of Birla Sunlife Mutual Fund - Birla Cash Plus
Institutional Premium Plan Dividend
- Carrying cost as at 31 March 2006: Rs. 68.72 Millions
Fixed Assets:
v Land
v Leasehold land
v Buildings
v Plant & Machinery
v Electrical Equipment
v Lab Equipment
v Office Equipment
v Furniture & Fixture
v Computers
v Vehicles
v Library
v Trademarks
Press Release
Matrix Laboratories Announces Appointment of Jagdish Dore’ as CEO
Secunderabad, India –Feb. 27, 2008–Matrix Laboratories Limited today announced
the appointment of Jagdish Viswanath Dore’ as CEO. Mr. Dore’ will assume the
responsibilities of Rajiv Malik who became Executive Vice President and Head of
Global Technical Operations for Mylan Inc. (NYSE: MYL) in October 2007and has
been serving as interim CEO for Matrix, a majority-owned subsidiary of Mylan.
Mr. Malik will be relocated to the U.S in connection with his employment by
Mylan.
Mr. Dore’ joins Matrix after a distinguished 29 year career with Sandoz most
recently as Managing Director and India Country Head. In this role, Mr. Dore’
was responsible for all of Sandoz’s operations in India including global
development and manufacturing; local and export sales; day-to-day operations;
and technical operations in the Asia Pacific region. He was previously
responsible for business operations in the Asia Pacific cluster and involved in
the startup of Novartis Enterprises Private Limited (now Sandoz), Novartis
Consumer Health India Private Limited and Master Builders Technology India
Private Limited, India.
Matrix Chairman Robert J. Coury said: “Jagdish’s impressive industry reputation
is well known, and I believe he will be a huge asset to Matrix as it continues
to expand its integral role in support of Mylan’s global platform. I have every
confidence that Jagdish will ensure that Matrix continues its strong growth and
supports Mylan in becoming the world’s leading, fully-integrated generic
pharmaceuticals company.”
N. Prasad, Matrix’s Vice Chairman, commented, “I have known Jagdish for some
time, and I am absolutely delighted that he will be assuming Rajiv’s role as
CEO of Matrix. During his tenure at Sandoz, Jagdish was responsible for
managing the company’s 1,800 employees based in India along with developing a
rapidly growing business across the Asia Pacific region. He brings a great deal
of experience on a strategic and operational level that will be invaluable to
Matrix as it strengthens its leadership in active pharmaceutical ingredients
(API), further develops its finished dosage form (FDF) capabilities and
continues to grow its antiretroviral (ARV) business.”
Mr. Dore’ said: “Matrix is an established, highly respected and high-quality
company in the pharmaceuticals industry both in India and world-wide. It is
only enhanced by being part of Mylan. I look forward to leading Matrix into the
next phase of its growth and working with the Mylan and Matrix senior
management teams to further align our organizations and leverage the
opportunities available to us in the global generics market.”
Mr. Dore’ earned a Bachelor of Technology degree from the Indian Institute of
Technology, Chennai, and a postgraduate degree in business management from the
Xavier Institute in Jamshedpur specializing in marketing.
Matrix Laboratories Limited, a subsidiary of Mylan Inc., USA, is a public
limited company listed on BSE and NSE, and is engaged in the manufacture of
Active Pharmaceutical Ingredients (APIs) and Solid Oral Dosage Forms. Matrix is
one of the fastest growing API manufacturers in India and focuses on regulated markets
such as U.S. and EU. The company has a wide range of products in CNS,
anti-bacterial, anti-AIDS, anti-asthmatic, cardiovascular, gastrointestinal,
anti-fungal, pain management and life style related therapeutic segments. All
API and FDF manufacturing facilities of the Matrix are approved by the US FDA.
For more information about Matrix, please visit www.matrixlabsindia.com
Matrix to Pursue Strategic Alternatives Including Potential Divestiture
of Docpharma
Secunderabad, India-Feb. 28, 2008-Matrix Laboratories Limited, a subsidiary of
Mylan Inc. (NYSE: MYL), today announced that its Board of Directors has
authorized its management to pursue strategic alternatives up to and including
the divestiture of its Docpharma subsidiary, a leading marketer and distributor
of generic pharmaceuticals in Belgium, the Netherlands and Luxemburg
("Benelux").
Shortly following Matrix's acquisition of Docpharma, Matrix underwent
significant activity including the acquisition of a 71.5% controlling interest
by Mylan, a U.S.-based generics pharmaceutical company. Since then, Matrix has
realigned its strategic focus with Mylan to yield greater value for
shareholders. In light of Mylan's acquisition of Merck Generics, Matrix will
further refocus its business to reflect the importance of strategic
arrangements with Mylan in support of its enlarged global platform.
Robert J. Coury, Matrix's Non-Executive Chairman stated, "After careful
review and upon recommendation from its senior management team, Matrix has
decided to explore strategic alternatives for Docpharma including a potential
sale. We believe our determination represents better growth in shareholder
value for our shareholders. As it has continued to realign itself to predominantly
serve Mylan's global generics business, Matrix will also continue to focus on
its core API business and finished dosage form development as well as on the
continued growth of its antiretroviral business. Docpharma offers a strong
platform for the marketing and distribution of generic pharmaceuticals in the
Benelux countries. We believe that Docpharma will be better situated in an
organization that is compatible with its core competencies."
Strategic alternatives for Docpharma, up to and including divestiture, remain
subject to approval by Matrix shareholders. Matrix will provide further detail
once it has reached any definitive agreement.
Matrix Laboratories Limited, a subsidiary of Mylan Inc., USA, is a public
limited company listed on BSE and NSE, and is engaged in the manufacture of
Active Pharmaceutical Ingredients (APIs) and Solid Oral Dosage Forms. Matrix is
one of the fastest growing API manufacturers in India and focuses on regulated
markets such as U.S. and EU. The company has a wide range of products in CNS,
anti-bacterial, anti-AIDS, anti-asthmatic, cardiovascular, gastrointestinal,
anti-fungal, pain management and life style related therapeutic segments. All
API and FDF manufacturing facilities of the Matrix are approved by the US FDA.
For more information about Matrix please visit www.matrixlabsindia.com
Corporate Notices
Source: BSE - Matrix
Laboratories Ltd has informed BSE that the Compensation Committee of the Board on May 10, 2008, by
circulation, has allotted 26,775 Equity Shares of Rs 2/- each under ESOP-2004
Scheme. Consequent to the above allotment, the paid-up share capital of the
Company has increased to Rs
30,92,11,846. Date: 2008-05-22
Source: NSE - Matrix Laboratories
Limited has informed the Exchange vide
its letter dated May 12, 2008 that "Mylan Inc., USA, (Mylan) the ultimate
holding company of Matrix Laboratories Limited (Matrix) has reported today (12th May, in the
US), the unaudited interim consolidated financials of Mylan for the quarter
ended 31st March, 2008 under US GAAP reporting, which inter alia included the
following unaudited details of Matrix:
Segment profitability (on a US GAAP basis) of $3,617,000 for the three months
ended 31 March, 2008. Please note that financial results of Matrix for the quarter ended / year ended 31st
March, 2008 are yet to be reported under Indian GAAP and the above information
is as reported by Mylan, which is being forwarded to you by Matrix for your information. Please also note
that Indian GAAP and US GAAP differ in certain significant respects, and the US
GAAP figures reported above may not be indicative of the results under Indian
GAAP." Date: 2008-05-13
Source: BSE - Matrix Laboratories Ltd
has informed BSE
about the following: "Mylan Inc., USA, (Mylan) the ultimate holding
Company of Matrix Laboratories Ltd (Matrix) has
reported today (May 12, local time), the unaudited interim consolidated
financials of Mylan for the quarter ended March 31, 2008 under US GAAP
reporting, which inter alia included the following unaudited details of Matrix: Segment profitability (on a US GAAP
basis) of $3,617,000 for the three months ended March 31, 2008. Further note
that financial results of Matrix for
the quarter ended / year ended March 31, 2008 are yet to be reported under
Indian GAAP and the above information is as reported by Mylan, which is being
forwarded to you by Matrix for your
information. Further also note that Indian GAAP and US GAAP differ in certain
significant respects, and the US GAAP figures reported above may not be
indicative of the results under Indian
GAAP." Date: 2008-05-13
Source: NSE - Matrix Laboratories
Limited has informed the Exchange vide its letter dated May 09, 2008
that "Mylan Inc., USA, (Mylan) the ultimate holding company of Matrix Laboratories
Limited (Matrix) has reported today
(8th May, in the U.S.), the unaudited interim consolidated financials of Mylan
for the quarter ended 31st March, 2008 under US GAAP reporting, which inter
alia included the following unaudited details of Matrix:
Revenues for the three months ended 31 March, 2008 (on a US GAAP basis) of US
$103 million, including third party sales of US$ 87.6 million. Please note that
financial results of Matrix for the quarter
ended / year ended 31st March, 2008 are yet to be reported under Indian GAAP
and the above information is as reported by Mylan, which is being forwarded to
you by Matrix for your information.
Please also note that Indian GAAP and U.S. GAAP differ in certain significant
respects, and the US GAAP figures reported above may not be indicative of the
results under Indian
GAAP". Date: 2008-05-10
Source: BSE - Matrix
Laboratories Ltd has informed BSE about the
following: "Mylan Inc., USA, (Mylan) the ultimate holding Company of Matrix Laboratories
Ltd (Matrix) has reported today (8th May, local time), the
unaudited interim consolidated financials of Mylan for the quarter ended March
31, 2008 under US GAAP reporting, which inter alia included the following
unaudited details of Matrix. Revenues
for the three months ended March 31, 2008 (on a US GAAP basis) of US $ 103
million, including third party sales of US $ 87.6 million. Further note that
financial results of Matrix for the
quarter ended / year ended March 31, 2008 are yet to be reported under Indian
GAAP and the above information is as reported as Mylan, which is being
forwarded to your by Matrix for your
information. Further also note that Indian GAAP and U.S. GAAP differ in certain
significant respects, and the US GAAP figures reported above may not be
indicative of the results under Indian
GAAP." Date: 2008-05-09
Source: BSE - Matrix Laboratories Ltd
has informed BSE
that the Company will publish audited financial results for the financial year
ending March 31, 2008 within three months i.e. by June 30, 2008, and hence the
Company would not be publishing the unaudited financial results for the last
quarter ended March 31, 2008. Date:
2008-05-05
Source: NSE - Matrix
Laboratories Limited has informed the Exchange that : "The Company will publish
audited financial results for the financial year ending 31st March, 2008 within
three months i.e. by 30th June, 2008, and hence we would not be publishing the
unaudited financial results for the last quarter ended 31st March,
2008." Date: 2008-04-26
Source: NSE - Matrix
Laboratories Limited has informed the
Exchange that: Mr Jagdish Viswanath Dore has joined Matrix Laboratories Limited as Chief Executive
officer of the Company effective April 21,
2008. Date: 2008-04-23
Source: BSE - With reference to the earlier announcement
dated February 28, 2008, Matrix Laboratories Ltd
has informed BSE
that Mr. Jagdish Viswanath Dore has joined Matrix
Laboratories Ltd as Chief Executive Officer (CEO) of the Company effective
April 21, 2008.
Date: 2008-04-23
Source: NSE - Matrix Laboratories
Limited has informed the Exchange
regarding a press release dated February 28, 2008, titled "Matrix to Pursue Strategic Alternatives
including Potential Divestiture of Docpharma". A copy of the press release
shall be available on the NSE website (http://www.nseindia.com) under:
Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate
Announcements). Date:
2008-02-28
Source: NSE - Matrix Laboratories
Limited has informed the Exchange that: "Mr. Rajiv Malik, the
incumbent Managing Director and Chief Executive Officer of Matrix Laboratories
Limited will be relocated to U.S in connection with his employment by the
parent company, Mylan Inc. He will be succeeded by Mr. Jagadish Dore. The
effective dates for relocation/ date of joining will be finalised
subsequently". Further the Company has also submitted to the exchange a
copy of press release in this regard dated February 27, 2008, titled "Matrix
Laboratories Announces Appointment of Jagdish Dore' as CEO". A copy
of the press release shall be available on the NSE website
(http://www.nseindia.com) under: Corporates > Latest Announcements and on
the Extranet Server (/Common/Corporate Announcements).
Date: 2008-02-28
Source: BSE - Matrix
Laboratories Ltd has informed BSE that Mr Rajiv
Malik, the incumbent Managing Director and Chief Executive Officer of the Company
will be relocated to US in connection with his employment by the parent
company, Mylan Inc. He will be succeeded by Mr Jagadish Dore. The effective
dates for relocation / date of joining will be finalised subsequently. In this
regard the Company has issued the following Press Release: The Company on
February 27, 2008 has announced the appointment of Jagdish Viswanath Dore as
CEO. Mr. Dore will assume the responsibilities of Rajiv Malik who became
Executive Vice President and Head of Global Technical Operations for Mylan Inc.
in October 2007 and has been serving as interim CEO for the Company, a
majority-owned subsidiary of Mylan. Mr. Malik will be relocated to the U.S in
connection with his employment by Mylan. The Company's Chairman, Robert J Coury
said: "Jagdish’s impressive industry reputation is well known, and I
believe he will be a huge asset to Matrix as it continues to expand its
integral role in support of Mylan’s global platform. I have every confidence
that Jagdish will ensure that Matrix continues its strong growth and
supports Mylan in becoming the world’s leading, fully-integrated generic
pharmaceuticals company." Mr. Dore said: "Matrix is an
established, highly respected and high-quality company in the pharmaceuticals
industry both in India and world-wide. It is only enhanced by being part of
Mylan. I look forward to leading Matrix into the next phase of its
growth and working with the Mylan and Matrix senior management teams to
further align our organizations and leverage the opportunities available to us
in the global generics market."
Date: 2008-02-28
Source: BSE - Matrix
Laboratories Ltd has informed BSE that the
Management of the company has been authorized to explore strategic alternatives
for Docpharma, including a possible divestiture of the Docpharma business. In
this regard the Company has issued following press release The Company, a
subsidiary of Mylan Inc. announced that its Board of Directors has authorized
its management to pursue strategic alternatives up to and including the
divestiture of its Docpharma subsidiary, a leading marketer and distributor of
generic pharmaceuticals in Belgium, the Netherlands and Luxemburg
("Benelux"). Shortly following the Company's acquisition of Docpharma,
the Company underwent significant activity including the acquisition of a 71.5%
controlling interest by Mylan, a US-based generics pharmaceutical company.
Since then, the Company has realigned its strategic focus with Mylan to yield
greater value for shareholders. In light of Mylan’s acquisition of Merck
Generics, the Company will further refocus its business to reflect the
importance of strategic arrangements with Mylan in support of its enlarged
global platform. Robert J Coury, the Company's Non-Executive Chairman stated,
"After careful review and upon recommendation from its senior management
team, Matrix has decided to explore strategic alternatives for Docpharma
including a potential sale. We believe our determination represents better
growth in shareholder value for our shareholders. As it has continued to
realign itself to predominantly serve Mylan’s global generics business, Matrix
will also continue to focus on its core API business and finished dosage form
development as well as on the continued growth of its antiretroviral business.
Docpharma offers a strong platform for the marketing and distribution of
generic pharmaceuticals in the Benelux countries. We believe that Docpharma
will be better situated in an organization that is compatible with its core
competencies." Strategic alternatives for Docpharma, up to and including
divestiture, remain subject to approval by the Company's shareholders. The
Company will provide further detail once it has reached any definitive
agreement. Date: 2008-02-28
Source: NSE - Matrix
Laboratories Limited has informed the Exchange regarding a press
release dated January 24, 2008, titled "Acquisition of Residual Holding in
MChem Group of Companies, China". A copy of the press release shall be
available on the NSE website (http://www.nseindia.com) under: Corporates >
Latest Announcements and on the Extranet Server (/Common/Corporate
Announcements).
Date: 2008-01-25
Source: BSE - Matrix
Laboratories Ltd has announced that, through its wholly owned
subsidiary had, earlier, executed definitive agreements with the
erstwhile promoter of Mchem group of companies, China to acquire his residual
shareholding in MChem group of companies. Consequent upon the receipt of the
applicable approvals, the transaction for purchase of the residual stake has
been completed. With the purchase of the residual stake, the effective holding
of the Company in MChem group of companies, through its wholly owned
subsidiary, stands at 97%. MChem manufactures a number of intermediates and
Active Pharmaceutical Ingredients (APIs). Therefore, the acquisition of the
residual stake of erstwhile promoter is strategic for enhancing the vertical
integration opportunities for Mylan and Matrix.
Date: 2008-01-25
Source: NSE - Matrix
Laboratories Limited has informed the Exchange regarding a press
release dated December 04, 2007 titled "Matrix announces tentative
FDA Approval under PEPFAR for Tenofovir Disoproxil Fumarate Tablets". A
copy of the press release shall be available on the NSE website
(http://www.nseindia.com) under: Corporates > Latest Announcements and on
the Extranet Server (/Common/Corporate
Announcements). Date:
2007-12-05
Source: BSE - Matrix
Laboratories Ltd has announced that it has received tentative
approval from the U.S. Food and Drug Administration (FDA) under the President’s
Emergency Plan for AIDS Relief (PEPFAR) for its Abbreviated New Drug
Application (ANDA) for Tenofovir Disoproxil Fumarate Tablets, 300 mg. The
Company’s Tenofovir Disoproxil Fumarate is the first and only generic tentative
approval of Gilead Sciences Inc.’s Viread Tablets, 300 rug. The Company’s ANDA
was tentatively approved in less than six months and is the seventh PEPFAR
tentative approval earned by the Company within the last 12 months. Under
PEPFAR, a tentative approval means that a company can immediately sell an HIV /
AIDS treatment outside of the United States. Although existing patents and / or
marketing exclusivity prevent the approval of the product in the United States,
a tentative approval indicates that the product meets all safety, efficacy and
manufacturing quality standards for marketing in the United States, which helps
to ensure AIDS patients abroad who receive these medications get the same
quality product as the American public. Tenofovir Disoproxil Fumarate will help
to meet the and increasing need for high quality, affordable treatment in the
developing world where the prevalence of HIV / AIDS is socially and
economically devastating. Date:
2007-12-05
Source: NSE -
News Verification : The media had reports that Mylan may come out with a
delisting offer for Matrix and are looking at buying the residual stake.
The Exchange, in order to verify the accuracy or otherwise of the information
reported in the media and to inform the market place so that the interest of
the investors is safeguarded, had written to the officials of the
company. Matrix Laboratories Limited has vide its letter
inter-alia stated,"As on date Mylan Laboratories Inc.,USA is neither
contemplating to buy residual stake nor delist the securities of the Company
from the Stock Exchanges. Hence, the news item is incorrect and
baseless." Date:
2007-11-13
Source: BSE -
With reference to the news item appearing in a leading Web Portal titled
"Mylan may come out with a delisting offer for Matrix; Looking at
buying the residual stake", Matrix Laboratories Ltd
has clarifies to BSE that as on date hereof, Mylan Laboratories
Inc., USA is neither contemplating to buy residual stake nor delist the
securities of the Company from the Stock Exchanges. Hence, the news item of Web
Portal is incorrect and baseless. The Company further confirms that it shall
continue to abide by the terms and conditions of the listing agreement. Date:
2007-11-13
Source: NSE - Matrix
Laboratories Limited has informed the Exchange that the Board of
Directors of the Company at their meeting held on October 30, 2007 considered
and approved the following items :- 1) Appointment of Prof. P V Indiresan as an
Additional Director on the Board of the Company with effect from October 30,
2007; 2) Appointment of Prof. P. V. Indiresan as the member of the Audit Committee. Date:
2007-10-31
Source: NSE - Matrix
Laboratories Limited has informed the Exchange regarding the
standalone Results for the half year ended on 30-SEP-2007 as follows: Net Sales
of Rs. 42799.3 lacs for half year ending on 30-SEP-2007 against Rs. 33665.5
lacs for the half year ending on 30-SEP-2006. Net Profit / (Loss) of Rs. 3943.2
lacs for the half year ending on 30-SEP-2007 against Rs. 3858.1 lacs for the
half year ending on
30-SEP-2006. Date: 2007-10-31
Source: NSE - Matrix
Laboratories Limited has informed the Exchange regarding the
standalone Results for the quarter ended on 30-SEP-2007 as follows: Net Sales
of Rs. 21322.5 lacs for quarter ending on 30-SEP-2007 against Rs. 14253.4 lacs
for the quarter ending on 30-SEP-2006. Net Profit / (Loss) of Rs. 1364 lacs for
the quarter ending on 30-SEP-2007 against Rs. 960.9 lacs for the quarter ending
on
30-SEP-2006. Date: 2007-10-31
Source: NSE - Matrix
Laboratories Limited has informed the Exchange regarding the
consolidated Results for the half year ended on 30-SEP-2007 as follows: Net
Sales of Rs. 82342.6 lacs for half year ending on 30-SEP-2007 against Rs.
81533.8 lacs for the half year ending on 30-SEP-2006. Net Profit / (Loss) of
Rs. 1695.9 lacs for the half year ending on 30-SEP-2007 against Rs. 4966.1 lacs
for the half year ending on 30-SEP-2006. Date:
2007-10-31
Source: NSE - Matrix
Laboratories Limited has informed the Exchange regarding the
consolidated Results for the quarter ended on 30-SEP-2007 as follows: Net Sales
of Rs. 37641 lacs for quarter ending on 30-SEP-2007 against Rs. 37317.8 lacs
for the quarter ending on 30-SEP-2006. Net Profit / (Loss) of Rs. (992.5) lacs
for the quarter ending on 30-SEP-2007 against Rs. 1585.9 lacs for the quarter
ending on
30-SEP-2006. Date: 2007-10-31
Source: BSE - Matrix
Laboratories Ltd has informed BSE that the Board of
Directors of the Company at its meeting held on October 30, 2007, inter alia,
has considered and approved the following: 1. Appointment of Prof. P V
Indiresan as an Additional Director on the Board of the Company with effect from
October 30, 2007. 2. Appointment of Prof. P V Indiresan as the member of the
Audit Committee.
Date: 2007-10-31
Source: NSE - Matrix
Laboratories Limited has informed the Exchange that "The Compensation
Committee of the Board on 22nd September, 2007, by circulation, have
allotted 45,300 Equity Shares of Rs. 2/- each under ESOP - 2004 Scheme.
Consequent to the above allotment, the paid-up share capital of the Company has
increased to Rs. 30,89,70,726/-". Date:
2007-09-27
Source: BSE - Matrix
Laboratories Ltd has informed BSE that the Compensation
Committee of the Board on September 22, 2007, by circulation, has
allotted 45,300 Equity Shares of Rs 2/- each under ESOP-2004 Scheme. Consequent
to the above allotment, the paid-up share capital of the Company has increased
to Rs 30,89,70,726.
Date: 2007-09-27
Source: NSE - Matrix
Laboratories Limited has informed the Exchange vide its letter
dated September 19, 2007 that the address of the Registrar & Share Transfer
Agent of the Company Viz., Venture Capital & Corporate Investments Limited
is changed with immediate effect and the new address is as under: Venture
Capital and Corporate Investments Limited, Unit: Matrix Laboratories
Limited, 12-10-167, Bharat Nagar, Hyderabad-500 018, Phone no(s):
040-23818475/76, Fax no:
040-23868024. Date: 2007-09-20
Source: BSE - Matrix
Laboratories Ltd has informed BSE that the Board of
Directors of the Company by a resolution passed through circulation on August
30, 2007, unanimously approved variation in terms of remuneration of Mr. Rajiv
Malik for the financial year 2007-08.
Date: 2007-09-19
Source: NSE - Matrix
Laboratories Limited has submitted to the Exchange a copy of the
Abstract & Memorandum of Interest, in terms of Section 302 of the Companies
Act, 1956, pertaining to variation in terms of remuneration of Mr Rajiv Malik,
Managing Director & Chief Executive Officer. A copy of the same shall be
available on the NSE website (http://www.nseindia.com) under: Corporates > Latest
Announcements and on the Extranet Server (/Common/Corporate Announcements).
Date: 2007-09-19
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 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 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.42.92 |
|
UK Pound |
1 |
Rs.84.48 |
|
Euro |
1 |
Rs.66.66 |
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 |
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 |
|
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 |
|