MIRA INFORM REPORT

 

 

 

Report Date :

18.09.2008

 

IDENTIFICATION DETAILS

 

Name :

PANACEA BIOTECH LIMITED

 

 

Registered Office :

Derabassi, Teh Rajpura, Patiala – 140 501, Punjab

 

 

Country :

India

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

02.02.1984

 

 

Com. Reg. No.:

16 - 22350

 

 

CIN No.:

[Company Identification No.]

L33117PB1984PLC022350

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNEP07035A

 

 

PAN No.:

[Permanent Account No.]

AAACP5335J

 

 

Legal Form :

Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer and Marketer of Pharmaceutical Formulations viz. Tablets, Syrups / Liquids, Capsules, Gels and Vaccines.

 

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

 

Maximum Credit Limit :

USD 35000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed pharmaceutical company having fine track. Available information indicates high financial responsibility of the company. Financial position of the company is good. Payments are usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

Derabassi,  Teh Rajpura, Patiala – 140 501, Punjab, India

E-Mail :

companysec@panaceabiotec.com

 

 

Corporate Office:

Ambala Chandigarh Highway, Lalru- 140 501, Punjab, India

Tel. No.:

91–11- 26945270/26945274

Fax No.:

91–11–26940199/26940621/26948548

E-Mail :

panbio.panbio@rme.sprintrpg.ems.vsnl.net.in

Website :

http://www.panacea-biotec.com

 

 

Head Office :

B 1 Extension / A-27, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi – 110 044, India

Tel. No.:

91–11–26945270 / 41679000 Extn. 2081  (D) 41578024 / 26974500 / 41678000

Fax No.:

91–11–26940199 / 26940621 / 41679075 / 41679070 / 41679081

Telex :

031 – 75211 SKJ IN

E-Mail :

panbio.panbio@rme.sprintrpg.ems.vsnl.net.in

companysec@panaceabiotec.com

investorgrievances@panaceabiotec.com

corporate@panaceabiotec.com

Website :

http://www.panacea-biotec.com

 

 

Plants :

·         B-1/E-12, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi – 110 044, India

Tel No.-91-11-26945270

Fax No-91-11-26940199

E-mail- corporate@panaceabiotech.com

 

·         A 241 / 242, Okhla Industrial Area, Phase I and II, New Delhi – 110 020, India

 

·         Ambala-Chandigarh Road, Lalru National Highway, Sub Tehsil Derra Bassi, Tehsil Rajapura, Patiala – 140 501, Punjab, India

 

·         Malpur, Baddi, Tehsil Nalagarh, District – Solan, Himachal Pradesh – 173205, India

 

·         Village Samalheri, Ambala Chandigarh Highway, Lalru – 140 501, Punjab, India  

 

·         Pharmaceutical Formulations facility at B-1/E-12, Mohan Co-operative Indl. Estate, Mathura Road, New Delhi - 110 044, India

 

·         Vaccines Formulations facility at A-241/242, Okhla Indl. Area, Phase I, New Delhi - 110 020, India

 

·         Bulk Vaccine facilities at Village Samalheri, Ambala-Chandigarh Highway, Lalru-140501, Punjab, India

 

·         Pharmaceutical Formulations facility at Malpur, Baddi,Tehsil Nalagarh, Dist. Solan, Himachal Pradesh- 173205, India

 

·         Vaccines Formulations facility at Malpur, Baddi, Tehsil Nalagarh, Dist. Solan, Himachal Pradesh-173205, India

 

 

City Office :

102, Ashok Plaza, 24 School Lane, New Delhi – 110 001, India 

Tel. No.:

91–11–26945270/26945274

Fax No.:

91–11–26948548/26940199/26940621

 

 

Administrative Office /

Secretarial  Office:

B – 1 Extension  / G – 3, Mohan Co-Op Industrial Estate, Mathura Road,  New Delhi – 110 044, India

Tel. No.:

91-11-41679000 Extn. 2081, (D) 41578024

Fax No.:

91-11-41679070 / 41679075

E-mail:

companysec@panaceabitoec.com

investorgrievances@panaceabiotec.com

 

 

Branch :

701, Sagar Tech Plaza, A Wing , Saki Naka, Andheri (East), Mumbai – 400 072, Maharashtra, India

 

 

R & D Centers :

·         Ambala-Chandigarh Highway Lalru – 140 501, Punjab, India

 

·         B-1/E-12, Mohan Co-operative Indl. Estate Mathura Road, New Delhi – 110 044, India

 

·         A-224, Okhla Indl. Area, Phase – I New Delhi – 110 020, India

 

·         Plot No. E-4, Phase II, Indl. Area Mohali – 160 055, Punjab, India

 

·         Plot No. Gen/72/3, ‘EL’ Block, T.T.C. Industrial Area, Mahape, Navi Mumbai – 400 710, India

 

 

DIRECTORS

 

Name :

Mr. Soshil Kumar Jain

Designation :

Chairman cum Whole-time Director

Age :

75 years

Experience :

53 years

Date of Employment :

02.02.1984

Qualification :

Pharmacist

Professional Experience :

He is a qualified pharmacist with more than 50 year experience in pharmaceutical industry. He is the founder promoter/director of the company and has been the Chairman of the Company since October 1984. He started his career in the Indian pharmaceutical industry by joining his family business in the form of a chemist shop set-up by his father. Prior to promoting The company, he was associated with Radicura and Company, a partnership firm (formerly owned by the promoters and subsequently taken over by Radicura and Company.) engaged in the retail and wholesale trading of pharmaceutical products.

Directorships :

He is a Director and Chairman of PanEra Biotec Private Limited (formerly Panheber Biotec Private Limited) and Neophar Alipro Limited

 

 

Name :

Mr. Ravinder Jain

Designation :

Managing Director

Age :

47 years

Experience :

28 years

Date of Employment :

15.11.1984

Qualification :

Matriculate

 

 

Name :

Mr. Rajesh Jain

Designation :

Joint Managing Director

Age :

44 years

Experience :

24 years

Date of Employment :

15.11.1984

Qualification :

B.Sc., MBA,  PGDBM, Advanced Management Diploma in Market Research

 

 

Name :

Mr. Sandeep Jain

Designation :

Joint Managing Director

Age :

38 years

Experience :

19 years

Date of Employment :

15.11.1984

Qualification :

B. Com

 

 

Name :

Mr. Ashwani Jain

Designation :

Director – Operations and Projects

 

 

Name :

Mr. Sunil Anand

Designation :

Director-Finance

 

 

Name :

Mr. R. L. Narasimhan

Designation :

Director

 

 

Name :

Mr. N. N. Khamitkar

Designation :

Director

 

 

Name :

Mr. Sunil Kapoor

Designation :

Director

 

 

Name :

Mr. M. L. Kalra

Designation :

Director

 

 

Name :

Mr. C. C. Bhagat

Designation :

Director

 

 

Name :

Mr. Gurmeet Singh

Designation :

Director

 

 

Name :

Mr. Sumit Jain

Designation :

Whole Time Director  and Director Operations  and Projects

Age:

27 years

Qualification :

Post Graduate Diploma in Business Management

Professional Experience :

He Joined the company in May 2003 as Manager (Vaccine) and was appointed as Whole-time Director in July 2005. He is currently acting as Director

(Operations and Projects) and overviews the upcoming projects at Lalru and is also responsible for the materials management and administrative matters of Panacea Biotec’s Lalru and Baddi facilities. Prior to Joining Panacea Biotec, he was associated with Radicura and Company Limited as Executive Director.

Directorships :

He is a Director of Radicura and Company Limited, Chiron Panacea Vaccines Private Limited. (being nominee of the company ) and Panacea Biotec, Inc., USA.

 

 

Name :

Mr. K. M. Lal

Designation :

Additional Director

 

 

Name :

Dr. A N Saksena

Designation :

Director

Age:

70 years

Qualification :

Post Graduate in Mathematics, Doctorate in Economics, Master’s Diploma in Public Administration and  Master’s Diploma in Quality Management.

Professional Experience :

He has been appointed as a Non-executive Director of the Company since December 2005. He retired in 1996 in the grade of additional secretary to Government of India as Financial Advisor to the Ministry of Petroleum. He has vast experience in the field of finance, accounts, audit, human resource development, corporate governance, legal and general management. Prior to his retirement, he held senior level position in various Central Government ministries including the Ministry of Shipping and Transport, Petroleum and Natural Gas, HRD, Information and Broadcasting, Law and Justice and Railways. He also held directorships in various public sector companies including ONGC Limited, Indian Oil Corporation Limited., Oil India Limited ., etc., during his tenure.

Directorships :

He is a Director of Possibilities Consultants Private Limited.

 

 

KEY EXECUTIVES

 

Name :

Mr. Vinod Goel

Designation :

Company Secretary 

 

 

Name :

Ms. Sangeeta Nagpal

Designation :

Executive Secretarial  and Deputy Manager- Secretarial

 

 

Name :

Mr. Devender Gupta

Designation :

Assistant General Manager – Finance

Tel No.:

91-11-41679000 Extn. 2092

Fax No.:

91-11-41679066, 41679070

E-Mail:

devendergupta@panaceabiotec.com

 

 

NON-EXECUTIVE DIRECTORS

 

·         Mr. R.L. Narasimhan Director

·         Mr. N.N. Khamitkar Director

·         Mr. Sunil Kapoor Director

·         Mr. M.L. Kalra Director

·         Mr. Gurmeet Singh Director

·         Mr. K.M. Lai Director

·         Dr. A.M. Saksena Director

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders (As on 30.06.2008)

No. of Shares

Percentage of Holding

Shareholding of Promoter and Promoter Group

 

 

Indian

 

 

Individuals/Hindu Undivided Family

43595140

65.22

Public shareholding

 

 

Institutions

 

 

Mutual Funds/UTI

996660

1.49

Financial Institutions/Banks

22399

0.03

Foreign Institutional Investors

14704638

22.00

Non-institutions

 

 

Bodies Corporate

4570426

6.84

Individuals –

i. Individual shareholders holding nominal share capital up to Rs. 0.100 Millions

2523905

3.78

ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100 Millions

284000

0.42

 

 

 

Any other (specify)

 

 

Clearing Members

143065

0.22

Clearing house

50

0.00

Individual – Margin Trading account

1538

0.00

Trust

925

0.00

TOTAL

66842746

100.00

 

Notes:-

 

·         Total Foreign Shareholding including FIIs, Foreign Corporate Bodies, NRIs and OCBs is 18447344 is 27.60%.

 

·         Shareholding of Bodies corporate includes 1045000 Shares held by Overseas Corporate Bodies (OCBs) and 2659415 shares held by Foreign Corporate Bodies.

 

·         Shareholding of Individual includes 38291 Shares held by Non-Resident Indians (NRIs).

 

 

(1)     (B) Statement Showing Shareholding of persons belonging to the category “Promoter and Promoter Group”

 

Name of Shareholders

Number

of Shares

Shares as a percentage of total number of shares (i.e; Grand Total (A) + (B) + (C)

Indicated in Statement at Para (I) (a) above

 

 

 

Mr. Soshil Kumar Jain

5000000

7.48

Mr. Ravinder Jain

4646200

6.95

Mr. Rajesh Jain

4706900

7.04

Mr. Sandeep Jain

4792100

7.17

Mrs. Nirmala Jain

2511000

3.76

Ms. Sunanda Jain

635000

0.95

Ms. Meena Jain

897000

1.34

Ms. Pamilla Jain

816500

1.22

Mr. Soshil Kumar jain (HUF)

4953400

7.41

Mr. Ravnider Jain (HUF)

4135000

6.19

Mr. Rajesh Jain (HUF)

4368500

6.54

Mr. Sandeep Jain (HUF)

4105000

6.14

Mr. Ankesh Jain

307000

0.46

Mr. Harshet Jain

299500

0.45

Mr. Nipun Jain

300000

0.45

Mr. Priyanka Jain

318000

0.48

Ms. Radhika Jain

357000

0.53

Mr. Sumit Jain

358500

0.54

Mr. Abhey Kumar Jain

1000

0.00

Mr. Anu Jain

1000

0.00

Ms. Kanta Rani

86540

0.13

Total

43595140

65.23

 

 

(1)     (C) Statement showing Shareholding of persons to the Category “Public" and holding more than 1% of the total number of shares.

 

Name of Shareholders

Number

of Shares

Shares as a percentage of total number of shares (i.e; Grand Total (A) + (B) + (C)

Indicated in Statement at Para (I) (a) above

HSBC Global Investment Funds A/C HSBC Global Investment Funds Mauritius Limited

2879881

4.31

Merrill Lynch Capital Markets Espana SA SV

2636960

3.95

Matterhorn Ventures

2576320

3.85

Somerset Emerging Opportunities F

1775913

2.66

Transportation, Infrastructure and Energy Investments

1626938

2.43

Gain Premium Limited

1045000

1.56

The India Fund, INC

1020450

1.53

DB Fund (Mauritius) Limited

1010812

1.51

Mirae Asset Investment Management Company Limited A/C Mirae Asset India Blue Chip Equity Shares Master Investment Trust

823600

1.23

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Marketer of Pharmaceutical Formulations viz. Tablets, Syrups / Liquids, Capsules, Gels and Vaccines.

 

 

Products :

Products

Item Code

Vaccine-Polio

3002 20 14

Nimesulide Tab

3004 90 67

Gliclazide Tab

3004 20 99

 

 

PRODUCTION STATUS

 

a)      Licensed Capacity Per annum

Recombinant Bulk Vaccine – 18 millions doses

Others – Not applicable

 

b)      Installed Capacity Per annum*

 

Products

Units of Measurement

As on

31.03.2008

As on

31.03.2007

Tables

Nos./Million

1684.0

1684.0

Capsules

Nos. / Million

370.0

370.0

Syrups / Liquids

Bottles / Million

15.8

15.8

Gels

Tubes/ Million

21.2

21.2

Vaccines (Finished Doses)

Doses  / Million

820.0

820.0

Recombinant Bulk Vaccines**

Doses  / Million

12.5

12.5

Tetanus Bulk Vaccines

Doses  / Millions

75.0

--

Bacterial Bulk Vaccines ***

Doses  / Millions

50.0

--

 

*As Certified by the management

 

The same has been leased to Panheber Biotec Private Limited Recombinant Plant is capable of manufacturing various bulk vaccines and

 

Antigens including Hepatitis B (Hep B), Haemophilus Influenza B Tetanus (Hib TT) and Anthrax Vaccine

 

***Bacterial Plant is capable of manufacturing various bulk vaccines including Diptheria, Whole Cell Pertussis (wP),

 

Acellular Pertussis (aP). Installed Capacity reduces to 5 million doses in case of production of aP.

 

(C) Actual Production during the year

 

Products

Units of Measurement

As on

31.03.2008*

As on

31.03.2007

Tables

Nos.

425,555,706**

439,428,872

Capsules

Nos.

55,436,411

48,115,434

Syrups / Liquids

MI

246,056,820

280,384,720

Gels

Gms

65,585,870

79,511,400

Vaccines

Vials

69,507,387

61,164,671

Injection

Nos.

588,105

1,560,952

 

*Actual Production includes production at Loan Licensee Locations

 

**Actual Production includes 8,104,220 Tablets manufactured by the company for others on job work basis.

 

 

GENERAL INFORMATION

 

Suppliers:

·         Ambika Parental Containers

·         Sri Krishna / Pharmaceuticals Limited

·         Advanced Microdevices Private limited

·         Wincoat Colours and Coating private limited

·         Paras enterprises

·         Canton Laboratories Private Limited

·         HRJ Surgicals

·         Siva chemicals

·         Sukkan Industries

·         Protech Engineering Industries Private Limited

 

 

No. of Employees :

2,800 employees (393 engaged in Research and Development, 910 in Production and 1,200 in Sales and Marketing)

 

 

Bankers :

Ř       Punjab National Bank

Ř       Standard Chartered Grindlays Bank

Ř       Canara Bank

Ř       State Bank of India

Ř       Standard Chartered Bank

Ř       Axis Bank Limited, Punjab

Ř       Bank of Bahrain and Kuwait B.S.C.

Ř       Export-Import Bank of India

Ř       Indian Overseas Bank

Ř       Industrial Development Bank of India Limited.

Ř       State Bank of Bikaner and Jaipur

Ř       State Bank of India

Ř       State Bank of Mysore

Ř       State Bank of Travancore

Ř       Union Bank of India

 

 

Facility

SECURED LOANS         

31.03.2008

(Rs. In Millions)

Foreign Currency Term Loans (from Banks)

 

State Bank of India

(Due within one year Rs. Nil (Previous Year Rs. Nil)

802.100

Interest Accrued and Due

4.974

State Bank of Travancore

Due within one year Rs. Nil (Previous Year Rs. Nil)

1006.526

Working Capital Loans from Scheduled Banks

256.753

Total

2070.353

 

Notes:

1. Foreign Currency Term Loans from State Bank of India and State Bank of Travancore are secured by way of first pari-passu charge by hypothecation of the Company’s entire moveable fixed assets, both present and future. The process for creation of first pari-passu charge by way of mortgage of immovable properties situated at Lalru and Baddi is in progress.

 

2. Working Capital Loans from Scheduled Banks are secured by way of first pari-passu charge by hypothecation of all current assets and all other moveable properties (including machinery and spares) besides second pari-passu charge on immoveable properties of the Company being land admeasuring 96 bighas, 19 biswas and 93 bighas 12 biswas situated at Village Samalheri, Tehsil Rajpura, District Patiala, Punjab. These are also collaterally secured by personal guarantees of the Promoter Directors of the Company, viz. Mr. Soshil Kumar Jain, Mr. Ravinder Jain, Mr. Rajesh Jain and Mr. Sandeep Jain.

 

UNSECURED LOANS    

31.03.2008

(Rs. In millions

Fixed Deposits*

(Due within one year Rs.432.500 millions (Previous year Rs.153.390 millions)

436.110

 

 

Interest accrued and due

0.102

 

 

Loan from Subsidiary

(wholly owned subsidiary Radicura and Company Limited)

----

 

 

(Due within one year Rs. nil (Previous Year Rs.5.100 millions) Interest accrued and due

----

 

 

Other Loans:

Foreign Currency Convertible Bonds**

US$ 36,800,000 (Previous Year US$ 45,000,000) Zero Coupon Convertible Bonds due 2011

(Due within one year Rs. nil (Previous Year Rs. nil)

1475.864

Total

1912.076

 

Note:

 

·         *Includes Rs.432.500 millions (Previous Year Rs.168.390 millions) from partnership firm in which some directors are partner and relatives and associates of some directors.

 

·         **Foreign Currency Convertible Bonds

 

o        Out of US $ 45000000 Zero Coupon Convertible Bonds (FCCBs) outstanding as at 1st April, 2007, FCCBs of US $ 200000 and US $ 8000000 were converted into Equity Shares on 17.05.2007 and 31.10.2007, respectively.

 

o        Unless previously converted, redeemed or repurchased and cancelled, the remaining FCCBs of US $ 36800000, which were issued on 13.02.2006, will be redeemed on Feb 14, 2011 at 142.80% of their outstanding principal amount.

 

 

Banking Relations :

Good

 

 

Auditors :

 

Name:

S. R. Batiliboi and Associates

Chartered Accountants

Address:

New Delhi, India 

 

 

Statutory Auditors :

 

Name:

S. R. Batiliboi and Associates

Chartered Accountants

Address:

Gurgaon, Haryana, India 

 

 

Cost Auditors :

 

Name:

J P Gupta and Associates

Cost Accountants

Address:

New Delhi, India                          

 

 

Joint Venture:

·         Panheber Biotec Private Limited (Upto 20.11.2007)

·         Chiron Panacea Vaccines Private Limited

·         Cambridge Biostability Limited

 

 

Associates/Subsidiaries :

Associates :-

·         Panacea Biotech Private Limited

·         Lakshmi and The Manager

·         Panheber Biotec Private Limited

 

Subsidiaries :-

·         Best On Health Limited

·         Radicura And Company Limited

·         Panacea Hospitality Services Private Limited

·         Panacea Educational Institute Private Limited

·         Sunanda Steel Company Limited

·         Panacea Biotec FZE, UAE

 

 

CAPITAL STRUCTURE

 

(AS on 31.03.2008)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

125000000

Equity Shares 

Re. 1/- each

Rs.125.000 millions

110000000

Preference Shares  

Rs. 10/- each

Rs.1100.000 millions

 

 

Total

1225.000 millions

 

 

Issued & Subscribed Capital :

No. of Shares

Type

Value

Amount

66842746

Equity Shares

Re. 1/- each

Rs.66.843 millions

 

 

Paid-up Capital :

No. of Shares

Type

Value

Amount

66693746

Equity Shares

Re. 1/- each

Rs.66.694 millions

Add:

Forfeited Shares

 

Rs. 0.093 million

 

(14900 Shares @ Rs.10/- each forfeited on May 15, 1999, which were later on sub-divided into 149000 Equity Shares of Re.1/- each on February 12, 2003)

 

 

 

 

Total

Rs.68.787 millions

 

 

Notes:-

 

(149000 Forfeited Shares have been allotted on 24th August, 2005 in the name of employees of the Company (in their capacity as Company’s nominees/trustees) for sale thereof at the prevailing market prices through recognised Stock Exchanges on the terms and conditions as specified by Managing / Joint Managing Directors or Director of the Company and reimbursement of net sales proceeds to the company account)

 

(Out of the above shares, 1814240 Equity Shares of Rs.10 each were issued as fully paid up bonus shares by capitalisation of General Reserves in earlier years, which were later on sub-divided into 18142400 Equity Shares of Re.1/- each on February 12, 2003) (Also refer note no. 3 of Schedule XX C regarding issuance of Equity Shares upon conversion of Foreign Currency Convertible Bonds (FCCBs))

 

 

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

66.786

65.774

961.518

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

6905.260

5325.109

1546.036

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

6972.046

5390.883

2507.554

LOAN FUNDS

 

 

 

1] Secured Loans

2070.352

0.558

1158.454

2] Unsecured Loans

1912.076

2133.645

4708.084

TOTAL BORROWING

3982.428

2134.203

5866.538

DEFERRED TAX LIABILITIES

595.030

383.870

246.832

 

 

 

 

TOTAL

11549.505

7908.956

8620.924

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

3182.066

2773.229

1370.093

Capital work-in-progress

2161.628

1362.828

967.007

 

 

 

 

INVESTMENT

2049.309

229.475

61.407

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
2116.424

2081.604

1804.469

 

Sundry Debtors
1482.608

929.161

774.535

 

Cash & Bank Balances
1411.803

1571.241

4414.573

 

Other Current Assets
29.549

22.706

34.481

 

Loans & Advances
404.506

468.777

679.488

Total Current Assets
5444.890

5073.489

7707.546

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
1118.458

1397.486

987.278

 

Provisions
175.264

139.596

507.487

Total Current Liabilities
1293.722

1537.082

1494.765

Net Current Assets
4151.168

3536.407

6212.781

 

 

 

 

MISCELLANEOUS EXPENSES

5.334

7.017

9.636

 

 

 

 

TOTAL

11549.505

7908.956

8620.924

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Sales Turnover

8304.442

8315.514

5363.545

Other Income

331.242

299.568

70.914

Total Income

8635.684

8615.082

5434.459

 

 

 

 

Profit/(Loss) Before Tax

1904.691

2091.010

1002.071

Provision for Taxation

572.993

622.924

392.685

Profit/(Loss) After Tax

1331.698

1468.086

609.386

 

 

 

 

Export Value

642.061

6816.397

4154.441

 

 

 

 

Import Value

2936.142

4006.971

2294.768

 

 

 

 

Expenditures :

 

 

 

 

Manufacturing Expenses

NA

NA

3143.790

 

Raw Material Consumed

3463.720

3641.667

NA

 

Purchases made for re-sale

172.969

100.254

20.371

 

Decrease in Finished Goods

21.788

117.559

2.971

 

Operation and other Expenses

694.674

626.412

NA

 

Selling and Distribution Expenses

460.606

326.921

429.689

 

Personnel Expenses

924.897

787.959

264.424

 

Research and Development Expenses

541.856

505.012

291.530

 

Financial Expenses

150.139

170.446

NA

 

Miscellaneous Expenses

1.682

2.619

4.823

 

Interest

NA

NA

133.332

 

Depreciation & Amortization

NA

NA

139.156

 

Other Expenditure

298.662

245.223

2.302

Total Expenditure

6730.993

6524.072

4432.388

 

QUARTERLY RESULTS

 

Year

30.06.2008

Type

1st Quarter

Sales Turnover

2244.800

Other Income

75.400

Total Income

2320.200

Total Expenditure

1667.500

Operating Profit

652.700

Interest

48.400

Gross Profit

604.300

Depreciation

137.300

Tax

126.500

Reported PAT

340.500

 

KEY RATIOS

 

Year

31.03.2008

31.03.2007

31.03.2006

Debt-Equity Ratio

0.49

1.01

1.60

Long Term Debt-Equity Ratio

0.47

0.87

1.13

Current Ratio

2.03

2.37

2.21

 

 

 

 

TURNOVER RATIOS

Fixed Assets

1.97

2.84

2.96

Inventory

3.97

4.32

2.95

Debtors

6.92

9.86

7.02

Interest Cover Ratio

13.68

13.26

8.51

Operating Profit Margin(%)

28.20

29.84

23.24

Profit Before Interest And Tax Margin(%)

24.62

26.92

20.70

Cash Profit Margin(%)

19.54

20.40

13.66

Adjusted Net Profit Margin(%)

15.96

17.48

11.12

Return On Capital Employed(%)

22.24

28.47

18.73

Return On Net Worth(%)

21.54

41.40

39.87

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Setting the Scene

 

·         The company is the 2nd Largest Vaccine producer in India

 

·         3rd Largest Biotechnology Company in India (ABLE Survey 2008)

 

·         The company has been pre-qualified by WHO to supply Oral Polio, Hepatitis B, Ecovac 4 (DTwP-Hep B), Easyfour (DTwP-Hib) and Easyfive (DTwP-Hep B-Hib) Vaccines

 

·         First Indian company to develop and launch innovative combination vaccines viz. Ecovac4, Easyfour and Easyfive in India

 

·         Among top 50 Pharmaceutical Companies in India – ranked 46th as per ORG IMS Cumm March’08

 

·         24 product patents valid in more than 60 countries world wide

 

·         798 patent applications filed, 260 granted/ accepted for grant globally as on 31.03.2008

 

·         Company’s Brands reach more than 35 countries globally

 

·         Played a key role in eradicating polio by supplying more than 5 billion doses of Oral Polio Vaccine to Govt. of India and UNICEF

 

·         Millions of patients enjoying happy and healthy life through their well established brands in niche therapeutic areas like pain  management, diabetes management, organ transplant

 

·         Stupendous contribution to Shareholders’ value

 

·         Over 280 Scientists working in 5 state-of-the art R and D Centers

 

·         Production facilities complying with International Standards

 

·         A family of over 2,800 people working relentlessly in improving quality of life of billions of people across the globe

 

·         One of the 13 Indian Companies and 68th amongst top 100 fastest growing small and mid-sized companies in Asia as per survey by Business Week, US (Source: Business Standard, Nov. 2007)

 

·         Mr. Rajesh Jain, JMD joined the rank of top 40 most influential people in global pharmaceutical industry in recognition for his vision and focus on prevention through vaccines and its delivery mechanism (source: World Pharmaceutical Frontiers, April 2008)

 

 

Management Discussion and Analysis

 

Industry Structure and Developments Global Vaccine Industry

The global market for vaccines has experienced robust growth through 2007-08 and is expected to continue the trend. Growth will be fuelled by new introductions and increasing usage in all regions. The biggest factor driving the vaccine market is its potential to prevent mortality due to diseases. Vaccines have eradicated many life-threatening diseases and many more vaccines are in the pipeline, which may serve as future life saviours.

 

The global vaccine market is estimated to have reached US$10 billion by 2008 and over US$23 billion by 2012, as per the various industry estimates. The industry has been generally dominated by paediatric vaccines, however the share of adult vaccines is also expected to increase significantly to US$ 7.5 billion by 2012 due to increased requirement of influenza and hepatitis vaccines. The cancer vaccines are also expected to be a major contributor to future market growth and are expected to be multi billion dollar market by 2012. Successful development of vaccines against pandemic flu, HIV, TB would increase the size of vaccine industry manifold.

 

Immunization has become one of the most important and cost-effective ways of reducing child mortality. The development of combination vaccines has opened new dimensions of fighting against multiple diseases with a single vaccine. This has also helped in optimal utilization of resources by lowering the cost of immunization. The combination vaccines will offer befitting solution to overcome complexity of childhood vaccination programme.

 

Many initiatives are being undertaken to boost access to vaccines and improve coverage. WHO and UNICEF launched the Global Immunization Vision and Strategy (GIVS) in May 2005 to meet the challenges. GIVS is based on four key strategies:

 

·         Immunize more people through a combination of routine and campaign strategies, with a strong focus on those currently excluded or unreached.

 

·         Introduce vaccines and technologies through needs assessment in developing countries.

 

·         Integrate other critical health interventions with immunization.

 

·         Achieve a secure, equitable supply of resources for immunization through global partnerships.

 

New resources are being mobilized by such innovative financing mechanisms as The Vaccine Fund of the Global Alliance for Vaccines and Immunization (GAVI), the Global Polio Eradication Initiative (GPEI) and the Measles Initiative and by making immunization a priority in poverty-reduction strategies. Enhancing immunization coverage will certainly have financial implications. It is estimated that the introduction of new vaccines and expanded coverage of existing ones will cause the cost of routine immunization to reach around US$6 billion by 2015. But the benefits are undeniable and justify the additional cost. Meeting Millennium Development Goal would save more than 5 million lives a year by 2015 and more than 30 million lives over the next 10 years.


 

Indian Vaccine Market

The vaccine industry in India, as per the industry estimates, is growing at 15-20% every year and is expected to cross US$ 1 billion by 2012. The private vaccine market is also likely to contribute US$500 million by the same period. The growth in Indian vaccine market is expected on account of increased supply of vaccines, consumer awareness, and government sponsored immunization programs as well as increased demand of combination vaccines. Though the Indian vaccine market is primarily dominated by traditional vaccines like Tetanus, DPT, Polio, Typhoid and Hepatitis-B, the private vaccine market is now shifting from single vaccines to new innovative combination vaccines like DTwP-Hep B, DTwP-Hib and DTwP-Hep B-Hib. The Government is also focusing on introduction of combination vaccines in paediatric immunization programs.

 

Polio Eradication in India

The goal of the Global Polio Eradication Initiative (GPEI) is to ensure that no child will ever again know the crippling effects of polio. Polio is a highly infectious disease caused by a virus called poliovirus. It invades the nervous system and can cause total paralysis in a matter of hours. It can strike at any age, but affects mainly children under five. Polio is mainly passed through person-to-person (i.e., fecal-oral) contact, and infects persons who do not have immunity against the disease. There is no cure for polio, but the disease can be prevented by immunization with polio vaccine.

 

The National Polio Surveillance Project, which was launched by Government of India in 1997 works closely with state governments and a broad array of partner agencies to achieve the goal of polio eradication in India. There has been a steady decline in Polio cases, from an estimated 3,50,000 cases in 1988 world wide, the total number of cases drastically came down to around 66 in 2005. India, however saw sharp increase in polio cases at 676 in 2006 which further increased to 874 in year 2007. In the first seven months of the year 2008, over 300 cases have been reported in the country.

 

 

Polio Cases Data

Year

No. of Polio Cases

1998

1934

1999

1126

2000

265

2001

268

2002

1600

2003

225

2004

134

2005

66

2006

676

2007

874

2008

346

 

As per WHO guidelines a WHO region can be certified polio free only if it does not record any case of polio during three consecutive years following the year in which zero case is registered first time. Assuming that India achieves zero case for the first time in year 2009 and thereafter, if it does not record any case of polio in 2010, 2011 and 2012, India can achieve its target of becoming polio free and become eligible for being declared as a polio free nation by WHO. However, immunization activities will continue until the entire region (Pakistan and Afghanistan) becomes polio free.

 

Immunization against Polio to Continue:

The immunization against polio will continue in the post polio eradication era. It is expected that the mode of immunization may change from Oral Polio Vaccine to Injectable Polio Vaccine (IPV). In those countries, where polio has been eradicated, IPV is being used. The world health regulatory bodies suggest that the vaccination against polio must continue even after achieving polio eradication.

 

Global Pharmaceutical Market

In the year 2007 the global pharmaceutical market registered annual growth of 9.7%. The global pharmaceutical market increased to US$ 712 billion in 2007 compared to US$ 649 billion in 2006. The industry registered a CAGR of 10% between 1999 value to US$ 1.3 trillion by 2020. The industry is being transformed due to significant changes in the demographic, epidemiological and economics globally

 

Global Pharmaceuticals Market – Sales

 

Global Sales

(Year)

Total World Market

(US $ bn)

Growth Over Previous Year

($ Constant US$ Growth)

2000

365

11.5%

2001

392

11.8%

2002

428

9.5%

2003

499

10.3%

2004

560

8.0%

2005

605

7.3%

2006

649

7.1%

2007

712

9.7%

 

Source: IMS Health Market Prognosis (includes IMS Audited and Unaudited Markets)

 

According to the Pharma 2020, a report from Price Waterhouse Coopers, the world population is growing and ageing; new areas of medical need are emerging; and the diseases from which people in developing countries suffer are increasingly like those that trouble people living in the developed world. These changes are expected to generate huge opportunities for the global pharmaceutical industry. The global population is projected to rise from 6.5 billion in 2005 to 7.6 billion in 2020. It is also ageing rapidly; by 2020, about 719.4 million people – 9.4% of the world’s inhabitants – will be of 65 or more years, compared with 477.4 million (7.3%) two years ago. Older people typically consume more medicines than younger people. So the grey factor will boost the need for medicines dramatically.

 

Top Ten Global Therapeutic Classes

 

Audited Market 2007

Sales

% Growth

YoY

 

US $  Billon

% Mkt Share

Worldwide

663.5

100.0

6.1

Oncologics

41.4

6.2

16.2

Lipid Regulators

33.7

5.1

(6.7)

Respiratory Agents

28.6

4.3

12.3

Acid Pump Inhibitors

25.6

3.9

2.8

Antidiabetics

24.1

3.6

10.7

Antipsychotics

20.7

3.1

10.7

Antidepressants

19.7

3.0

(6.8)

Angiotensin II

Antagonists

19.4

2.9

13.6

Anti – Epileptics

15.2

2.3

13.5

Autoimmune Agents

13.3

2.0

20.3

Top 10

241.6

36.4

7.3

 

*Excludes unaudited markets and Russia, Ukraine and Belarus audited data. Sales cover direct and indirect pharmaceutical channel purchases in U.S. dollars from pharmaceutical wholesalers and manufacturers. The figures above include prescription and certain over-the-counter data and represent manufacturer prices. Totals may not add due to rounding.

 

Region-wise Global Pharmaceutical Sales, 2007

 

 

2007 Sales*

 

Audited Market

US $ bn

% Mkt Share

% Growth

(Constant US $)

North America

304.5

45.9

4.2

Europe

206.2

31.1

6.7

Asia, Africa and Australia

62.2

9.4

13.1

Japan

58.5

8.8

4.2

Latin America

32.0

4.8

12

Total Audited

663.5

100.0

6.1

 

*Excludes unaudited markets, and Russia, Ukraine and Belarus audited data. Sales cover direct and indirect pharmaceutical channel purchases in U.S. dollars from pharmaceutical wholesalers and manufacturers. The figures above include prescription and certain over-the-counter data and represent manufacturer prices. Totals may not add due to rounding.

 

The cost of research and development is continuously increasing due to multiple reasons including the cost of failure. The R and D spending has increased but the number of New Molecular Entities (NMEs) and biologics approved by FDA is down.

 

The drug development and approval process is also changing from its traditional approach to more proactive approach as under:

 

According to IMS Health, the global pharmaceuticals market is expected to grow at 5 to 6 percent in 2008 due to the following key dynamics shaping the market:

 

·         Drug treatment costs decline in major therapy areas

 

·         Shift in growth from top seven markets to emerging markets, and from primary care to specialty care

 

·         Increased uncertainty over safety, pricing and market access, and intellectual property issues.

 

Indian Pharmaceutical Market

India is one of the fastest growing pharmaceutical markets in the world. Poised on the cusp of an exciting period of growth, the Indian Pharmaceutical Market (IPM) is big and getting bigger, driven by growing prosperity and a shift in disease pattern. IPM is the world’s 4th largest by volume (around 8% of the global total) and is 13th largest by value, presently estimated to be around US$ 7.5 billion (Rs.326 billion) representing around 1% of the global market share. The market is entering a pivotal period of change and is driven by huge patient base, increasing incomes, improving healthcare infrastructure and a strong penetration of health insurance. We can expect extensive activities as the leading Indian pharmaceutical companies strive towards international competitiveness. Indian companies continue to dominate the IPM with a share of 81%, however global pharmaceutical companies have already begun to take advantage of the changing regulatory and economic conditions in India.

 

Acute therapies presently dominate this market with a 74% share, however the increasing penetration of life style related diseases which account for 26% of the market, supported by robust value growth, is expected to fuel the growth of drugs targeting chronic diseases.

 

Year 2007-08 has fulfilled the industry expectations of a 12-14% growth. The growth of IPM as of May MAT 08 was 14% with a value of Rs.326 billion. Sales volumes and new introductions were the major growth drivers, while price led growth was not very significant. The contribution of top 300 brands to IPM has declined from 35% to 33%. The growth seems to be primarily driven by brands launched post 2001.

 

The rural markets share to IPM has remained at 21% in 2007-08. In terms of growth, rural segment has shown lower growth at 14% in 2007, contrary to the high value growth of 37% in 2006. Metro cities have bounced back in 2007-08. Their contribution to IPM has increases from 2.6% in 2006 -07 to 28% in 2008-08 with an impressive value growth of 20% as against 14% growth of IPM.

 

Top ten drug therapies contribute 87% to IPM. Leading drug classes by size in the acute therapies were Anti-infective which contributes 18% and grew at 16% adding on Rs.8.1 billion as compared to the last year followed by Cardiac which grew at 22%. Amongst the chronic therapies, Anti-diabetics valued at Rs.16.4 billion grew at 25% adding on Rs.3.3 billion over the last year. In 2007-08, Cardiac market has displaced the Gastro-Intestinal market from its number 2 position.

 

 

Top 10 Therapy class and new introduction activity

                                                                                                                                              (In Rs. In billion)

Therapy Class

Value

2006-07

Value

2007-08

Market Contribution %

2007-08

Growth %

Value of New Introduction in last 24 months

IPM

285.8

326.0

100.0

14

21.2

Anti – Infectives

50.6

58.7

18.0

16

5.4

Cardiac

29.2

35.6

10.9

22

1.8

Gastro  Intestinal

31.4

35.4

10.9

13

2.2

Respiratory

26.1

29.0

8.9

11

1.3

Pain / Analgesics

26.8

28.7

8.8

7

2.5

Vit / Minerals / Nut

24.4

26.4

8.1

8

1.7

Gynec

15.7

18.3

5.6

16

1.2

Neuro / CNS

15.5

17.8

5.5

15

1.5

Derma

15.8

17.6

5.4

11

0.9

Anti Diabetic

13.1

16.4

5.0

25

0.7

 

Way Forward:

The domestic formulations industry has grown at a CAGR of nearly 13 percent from 2002 to 2007. This market is expected to further grow at a CAGR of 16 percent over the next five years. This growth will be spurred primarily by India’s expected economic prosperity. The industry is also witnessing a gradual shift in the disease pattern towards chronic ailments such as cardiovascular diseases, diabetes, obesity, etc., reflecting the changing life style of India’s urban population. The chronic segment is evidently driving the growth of IPM. New introductions in the life style disease segment will play a key role in fuelling the growth of this segment, in the medium to long – term, a considerable share of the growth is expected to come from the Tier II and III cities and rural markets, in addition to Tier I Cities.

 

India’s competitive advantages include low-cost skill base, current Good Manufacturing Practice (cGMP) and U.S FDA Compliance levels, high visibility in generics, high – quality compliant manufacturing, strong financial position with ability to scale up manufacturing capacity, access to new technologies, cost efficiency and track records and recognition of products patents.

 

Subject - Supporting life through Innovation

The company occupies a niche position in the Indian health management industry through its focus on providing innovative research-based solutions for health management. The Company has well established capabilities and infrastructure in research, manufacturing and marketing of vaccines and pharmaceutical formulations. The company continues to be the 2nd largest vaccine producer in India and has been ranked as the 3rd largest biotechnology Company (ABLE Survey 2008). The branded pharmaceutical formulations business places it amongst the top 50 pharmaceutical companies in India as per the ORG IMS MAT March 2008 – ranked 46th as per ORG IMS Cumm March, 2008. The company focuses on two main streams of Health Management, viz. the Prophylactic (prevention) and Therapeutic (treatment). The Vaccine portfolio represents the prophylactic part and the therapeutic part is represented by the Pharmaceutical Formulations. The Company is also focusing on biopharmaceuticals to expand its business segments and therapeutic reach. The Company has also charted out a plan for diversification in related healthcare field through its subsidiaries as part of its corporate vision to become a leading Health Management Company.

 

Core Strengths at a glance

The company is well positioned and recognized as a leading, research based Health Management Company with a clear objective to discover, develop and successfully market innovative products to prevent and cure diseases and to enhance the quality of life of the human beings. To achieve these objectives, The company has:

 

Established capabilities in R and D:

The company has established a pentagon of R and D Centers with each Center dedicated to specific research areas. The Company has proven capabilities in the Research and Development of new vaccines and NDDS based pharmaceutical formulations with extensive infrastructure from pre-clinical research to final development. The Company has also expanded its research activities to include drug discovery in small and big molecules (new chemical entities and new biological entities). The Company now has 5 ultra modern fully operational R and D Centers with over 280 qualified and experienced scientists engaged in various research projects. The Company’s fifth R and D Center GRAND (Global Research and Development Center) focusing on Advanced Drug Delivery Systems at Navi Mumbai got operational in March 2008. The core research areas of the R and D Centers are:

 

·         Vaccine Development

·         Novel Drug Delivery Systems

·         Advanced Drug Delivery Systems based on nano particles

·         New Drug Discovery in Chemistry

·         New Drug Discovery in Biopharmaceuticals

 

As a result of its research efforts, the Company has been granted 24 product patents valid in more than 60 countries including the U.S., U.K., Germany, China, Brazil, Australia and Russia.

 

Established facilities, technologies and processes:

The company has state of the art manufacturing facilities for vaccines and pharmaceutical formulations complying international standards of US-FDA, UKMHRA, SA-MCC and WHO cGMP. The manufacturing facilities are located at Delhi, Lalru in Punjab and Baddi in Himachal Pradesh. The Company has also put up state of the art vaccine formulation facility at Baddi. The Company has set up two separate bulk vaccine facilities for tetanus and Bacterial vaccines at Lalru. The company is in the process of setting up herbal extraction plant and bulk vaccine manufacturing facility for cell culture based vaccines at Lalru, Punjab.

 

The vaccine formulation facility at New Delhi is approved  by WHO for Oral Polio and Recombinant  Hepatitis B  vaccines and combination vaccines- Ecovac 4 (DTwp-HepB), Easy Four (DTwP-Hib) and Easy five DtwP- HepB-Hib). The pharmaceutical formulations plant at Baddi is also approved by ANVISA, the Brazilian Regulatory Authorities of several other emerging markets.

 

Established Brand Equity:

The company has established brand equity in niche therapeutic areas like pain management, diabetes management, organ transplant and paediatric immunization. The company (domestic formulations) is ranked 46th as per ORG IMS Cumm March 2008 with a growth of 22%. Its leading brands are amongst the top five positions in their respective therapeutic segments. It has two brands which feature amongst the top 250 brands in Indian Pharmaceutical Market, Glizid M ranked at 173 and Nimulid at 243 according to the secondary stockists audit by ORG IMS (MAT March, 2008).

 

Relationship with Key Business Associates:

The company has a long-standing relationship with its key customers and business partners including successful business record of over 8 years with UNICEF. It has been supplying oral polio vaccines to UNICEF since fiscal 2000 and has steadily expanded and grown on this relationship. In addition to long-standing relationship with its customers, the relationships with key suppliers like Novartis Vaccines, Sanofi Pasteur and PT Bio Farma are also a source of its competitive strength.

 

WHO Pre-qualification:

The pre-qualified supplier status enables the Company to participate in UN organizations procurement process around the world. The Company has been pre-qualified by WHO to supply Oral Polio, Hepatitis B, Ecovac 4 (DTwP-Hep B), Easyfour (DTwP-Hib) and Easyfive (DTwP-Hep B-Hib) Vaccines. The Company is currently supplying Oral Polio and Hepatitis B vaccines to UNICEF and supply of Easyfive is expected to be initiated during current fiscal.

 

Collaborations and Joint Ventures with Key Industry Players:

The company has a rich history of collaborations and ventures with various industry players and has several business relationships with various national/international research institutes, academic universities and commercial corporations including National Institutes of Health, USA, Cambridge Biostability Limited., UK, Novartis Vaccines (formerly Chiron Corporation), Sanofi Pastuer, France, Biotech Consortium India Limited. (BCIL), India, Nederland Vaccin Institute (NVI), Netherlands, PT Bio Farma, Indonesia, etc. These collaborations, ventures and relationships enable the Company to secure in-licensing, out-sourcing and other business opportunities.

 

Qualified and Experienced Manpower:

The company has over 2,800 employees with 393 engaged in research and development, 910 in production and 1,200 in sales and marketing. The Company believes that qualified manpower is the key to the success of a health management company. The Company values its human capital and continues to nurture the talent pool by identifying and imparting training and developing its people across the organization. 393 engaged in research and development, 910 in production and 1,200 in sales and marketing. The Company believes that qualified manpower is the key to the success of a health management company. The Company values its human capital and continues to nurture the talent pool by identifying and imparting training and developing its people across the

organization.

 

Financials:

The company has been consistently delivering better financial results over medium to long period. The Company’s net turnover has grown to Rs.8304.4 million during financial year 2007-08 registering a CAGR of 37% during last three financial years and 25% CAGR over the last five years. The Profit after Tax has also grown at a CAGR of over 64% during last three financial years and over 44% during last five years to Rs.1331.7 million during financial year 2007-08. Basic and Diluted Earning per Share has been Rs.20.1 and Rs.18.9 per share during financial year 2007-08 registering a CAGR of over 40% in the last five years.

 

Business Segments

 

Pharmaceutical Formulations

Pharmaceutical formulations, also referred to as finished dosages, are finished pharmaceutical products ready for consumption by the patient. Branded pharmaceutical formulations are those which are sold through prescription of a registered medical practitioner under a specific brand name. The Company has established brand equity in many therapeutic areas including pain, diabetes and organ transplant. During the year, the Company has also forayed into Rs.8.0 billion Oncology Segment in India. Its leading brands are amongst the top 5 positions in their respective therapeutic segments.

 

The pharmaceutical formulations segment’s gross turnover grew by 14.2% and contributed Rs.2013.8 million or 24% of gross turnover during fiscal 2008, as compared to Rs.1762.9 million or 21% of gross turnover for fiscal 2007. Panacea Biotec’s domestic formulations business is ranked 46th as per ORG IMS Cumulative March 2008 with a growth of 22%.

 

Domestic Sales and Marketing Network

The company has engineered its sales and marketing network for pharmaceutical formulations into strategic business units (SBUs), which comprises of Critical Care, Diacar, Procare, Growcare and OncoTrust. If one looks at the Indian Market as a pyramid, the bottom of the pyramid would be extremely large and voluminous. To cater to this bottom of the pyramid, the Company has taken an initiative and recently launched a new SBU,viz. Value India.

 

The aim of each SBU is to attain leadership position in its respective markets and establish brand equity in respective therapeutic segment by implementing the concept of Customer Relationship Management (CRM) for better coverage and servicing of customers. The SBUs promote a portfolio of brands with a special focus on Orthopedicians, Cardiologists, Diabetologists, Physicians, Nephrologists, Pulmonologists, Surgeons, Dentists, ENT (Ear, Nose and Throat) specialists, Paediatricians and Gastro-enterologists.

 

Diacar

Diacar is the highest contributing SBU of the Company with dedicated marketing and sales infrastructure for Diabetes and Cardiovascular management. This SBU is committed to provide new therapies and innovations in delivery and overall diabetes disease management.

 

India’s diabetic population is estimated to be around 37 million and growing rapidly. WHO estimates that diabetes related mortality could increase 35% by 2015. The SBU promotes the brands to target specialists viz. Endocrinologists, Diabetologists and Physicians in a fiercely competitive scenario and has achieved significant leadership position in Oral anti-diabetic segment.

 

The SBU also focuses on ever growing segment of cardiovascular disease management. Cardiovascular disorders are expected to rise as a result of coronary heart disease which is driven by risk factors including diabetes and hypertension, both of which are rampant in India. The SBU is endeavouring to market novel therapeutic solutions to help patients suffering from various cardiovascular disorders.

 

The flagship brand of the SBU, Glizid M (Gliclazide + Metformin) is the No. 1 brand while Glizid (Gliclazide) is the no. 2 brand in their respective categories. Glizid M apart from the above is ranked at 173rd position amongst 30000 odd pharmaceutical brands. The brand portfolio of this SBU includes: Oral Hypoglycemic agents: Glizid M (Gliclazide + Metformin), Glizid (Gliclazide), Glizid MR (Gliclazide modified release), Betaglim (Glimepiride), Betaglim M (Glimepiride + Metformin), Metlong and Metlong DS (Metformin), Pioryl (Pioglitazone + Glimepiride), Oglo (Pioglitazone), Gliben Total, Glizid Total, Glim Total, and Myelogen Forte.

 

Cardiovascular: Lower A (Atorvastatin), Lower EZ (Atorvastatin + Ezetimibe), Lower TG (Atorvastatin + Fenofibrate) and Threpro (Atorvastatin + Ramipril + Aspirin).

 

New product launches during the year include Fitliv Dia Nutritional Biscuits, Glizid-M OD, Lower CVD and Lower TG and Hit target range.

 

Procare

Procare SBU of the Company endeavors to consolidate and strengthen its image in the field of chronic health care management with specific focus on Osteoarthritis, Pain management, Osteoporosis and Gastrointestinal disorders.

 

Pain is a frequent cause for clinical visits with approx. 45% of the population seeking medical help for pain at some point in their lives. Pain occurs across the life span, and it has been estimated that 4 out of every 10 people with moderate or severe pain do not get adequate relief. Chronic pain is widely believed to represent a disease itself causing long-term detrimental changes in musculosketal and nervous system. Pain interferes with sleep, activities of daily living and productivity. In order to help millions of patients suffering from various painful inflammator  disorders, Procare SBU is marching ahead to provide therapeutic modalities to these patients.

 

This SBU promotes a portfolio of brands with special focus on Orthopedicians, Surgeons, Dentists and Gastroenterologists apart from consulting physicians and General Physicians. Some of the major brands of Procare across different therapeutic segments are: Anti-arthritis: Willgo, Kondro, Kondro OD, KondroAcute, Kondrocerin, and Cilamin Pain relievers: Nimulid, Nimulid SP, Nimulid MR, Nimulid HF, Nimulid Nugel, Nimulid safeinject and Softdiclo Range.

 

Gastrointestinals: Livoluk, Livoluk Fibre Anti-osteoporosis: Alphadol, Alphadol-C, Kingcal.

 

New brands launched with purpose of strengthening their presence in arthritis therapy (Kondro Range) and Pain Relievers range, include KondroAcute (Glucosamine+Diacerien), Kondrocerin (Diacerien), SoftdicloAcute (Diclofena c+Paracetamol+Rabeprazole), Kingcal and OD-Pep Capsules.

 

Critical Care

Critical Care, a Super Specialty SBU of the Company focuses on Nephrology and organ transplantation segments. It offers a complete range of pre and post transplant therapies. The SBU has achieved clear leadership in the Nephrology and Transplantation segment. The Brand portfolio of this SBU includes: Panimun Bioral (Cyclosporine) capsules and solution, Mycept (Mycophenolate Mofetil) tablets and capsules, Pangraf (Tacrolimus) capsules, Fosbait (Lanthanum Carbonate) tablets, Overcom (Iron Sucrose) injection, Mycept S (Mycophenolic Acid) tablets and Siropan (Sirolimus) tablets. Pangraf continues to be the leading brand in Tacrolimus market with

54% growth. Fosbait is the 1st brand of Lanthanum Carbonate launched in India. Overcom ensured their strong presence in the Dialysis Centers.

 

Growcare

Growcare is the Orthopaedic and Respiratory business of Panacea Biotec. The different specialties covered are Chest Physicians, Orthopaedicians, ENT, Surgeons, Consulting Physicians, Paediatricians, Gastro-enterologists and GPs. 27 different brands are marketed by this SBU with presence in multiple therapy areas.

 

Some of the popular brands of Growcare are: Anti TB: Xeed 2, Xeed 3E and Xeed 4 tablets fixed dose combinations, Myser (Cycloserine) and Myobid (Ethonamide). Pain Management: Nimulid MD and Nimulid MD kid (Mouth Dissolving) tablets, Nimulid Suspension, Nimulid Transgel.

 

·         Cough preparation: Toff MD, Toff DC and Toff Expectorant.

 

·         Anti haemorrhoidal: ThankGod Tablets

 

·         Anti-infective: Cefmentin (Cefixime), Ocimix (Ornidazole+Ofloxacin).

 

New brands launched during the year include Cefmentin, Fego HF, Levo MDR, Zomont range, Freeway tablets and Orangemol Suspension.

 

OncoTrust

The company made its maiden entry into the rapidly growing field of Oncology in September, 2007 with launch of new SBU called ‘OncoTrust’. Oncology as a therapeutic segment is rated as one of the fastest growing fields globally and in India also. The Oncology market is well poised for a promising future ahead with steady increase in cancer incidence rate, superior and more accessible diagnostic facilities, increased awareness about the disease and feverish pace of new molecule introduction. The overall size of the domestic oncology market is around Rs.8 billion and is growing at around 22%. More than 50% of the world’s cancer burden, in terms of both number of cases and deaths and occurs in developing countries.

 

The current product portfolio of OncoTrust comprises of cytotoxic chemotherapy covering indications therapeutic segments such as Breast Cancer, Lung Cancer, Pancreatic Cancer, Ovarian Cancer and Brain Tumour and a supportive therapy for patients suffering from bone metastases. The Brand Portfolio includes PacliTrust (Paclitaxel Injection); DoceTrust (Docetaxel Injection); GemTrust (Gemcitabine injection); TemoTrust (Temzolomide Capsules) and ZoleTrust (Zoledronic Acid Injection).

 

Brands Review

It is believed that brands are the life and soul of any organization and accordingly, various brand building campaigns are conducted regularly. The Company’s brands are being well accepted by the medical fraternity and enjoy excellent market share in their therapeutic segments. There has been substantial growth in the sales of well-accepted brands of the Company during the year as compared to the previous year. As per Stockist Secondary Audit of ORG (MAT Mar’08), two brands of the Company continue to feature among Top 250 brands in the Indian Pharmaceutical market. Glizid M stands at 173rd rank and Nimulid as a brand stands at 243rd rank. Glizid M continues to retain number one position within the category.

 

The following table set forth the key brands of the Company across therapeutic categories and their ranking Market share in India as per ORG IMS audit:

 

Brands

Market

Share %

Ranking

Diabetes and Caridac Care:

22

1

Glizid M

20

2

Glizid 80 mg

29

2

Glizid 40mg

12

2

Glizid MR 60 mg

14

2

Glizid 30 mg

100

1

Fitliv Dia *

19

2

Glizid Total *

6

3

Threpro*

 

 

Organ Transplantation :

 

 

Panimun Bioral

89

1

Mycept

49

1

Pangraf

39

1

Fosbait

75

1

Pain Management :

 

 

Willgo

52

1

Nimulid MD

24

1

Nimulid 100 mg

11

2

Nimulid Suspension

13

2

Nimulid Safeinject

16

2

Nimulid Transgel

19

2

Nimulid Nugel

10

4

Nimulid SP

10

4

Nimulid MR*

7

4

Soft Diclo*

 

 

Tuberculosis Management :

 

 

Myser

19

3

Gastro – Intestinal :

 

 

Livoluk

10

4

Antibiotics  and Respiratory :

 

 

Cefmentin *

7

5

 

(* New Introductions during fiscal 2008)

 

·         The source of the data is ORG IMS SSA audit MAR 2008.

 

·         Market shares and rank is calculated within its immediate operating market i.e. the strength or the immediate operating market i.e. the strength or the immediate market (wherever applicable)

 

·         Critical care brands have a poor reflection in ORG IMS audit, as ORG does not track institutional sales or Direct to patient sales.

 

·         New Introduction are brands launched in the last 24 months.


 

Vaccines

The company has an excellent portfolio of innovative paediatric vaccines which protect children against dreadful diseases such as polio, hepatitis, diphtheria, tetanus, pertusis, haemophilus influenza. The portfolio of vaccines includes the Trivalent Oral Poliomyelitis Vaccine (tOPV), Monovalent (Type I and Type III) Oral Polio Vaccine (mOPV), Enivac HB (Hepatitis B) Vaccine and innovative Combination Vaccines such as Ecovac4 (Diptheria-Tetanus-wholecell Pertusis (DTwP)-Hepatitis B), Easyfour (DTwP-Haemophilus Influenza type B (Hib)) and Easyfive (DTwP-Hepatitis B-Hib). The Company has WHO pre-qualification for all these vaccines and is currently supplying Oral Polio and Hepatitis B vaccines to UNICEF for their global requirements. The company is also expected to initiate supply of Easyfive vaccine to UNICEF from current financial year onwards.

 

The vaccines, Enivac HB, Ecovac4, Easyfour and Easyfive are being also marketed in India through its joint venture Company Chiron Panacea Vaccines Private Limited. (CPV). The company has gained significant market penetration with an estimated market share of around 45% in the combination vaccine segment in domestic market. The Company has recently launched PolProtec, an innovative injectable polio vaccine, in the Indian market in pre-filled syringe, through CPV and plans to launch a novoHib (mono Hib) vaccine in the current financial year.

 

Logistics Network

During the year, the Company through its efficient sales force reached more customers more effectively. The Company has a nationwide sales and marketing network covering approximately 450 districts in India and targets more than 1.1 million customers through a field force of more than 1000 trained marketing and sales professionals and 23 sales depots/carrying and forwarding agents all over India. The Company has its Central Warehouse at Delhi. Besides this the Company also has expertise in cold chain management for storage and distribution of vaccines under monitored conditions using a system of Vaccine Vial Monitors, Data Loggers, Ice Boxes, Coolant, Cold Rooms and Refrigerated Vehicles. This ensures that the vaccines remain safe and effective against changes in the variant temperature conditions

 

Market Research

Market Research team carries out primary research studies to understand the behaviour of customers, products and competitors to enable the marketing and brand management team in evaluating strategic options and decision making. Various tailor-made and customized market studies are carried out through management students outsourced from various management institutes across India, meeting the respondents at their clinics and at National conferences.

 

Besides this, the market research team consistently provides the data from syndicated sources like ORG IMS in terms of therapy, molecule and brand position vis-ŕ-vis competition. The information on market share and rank is provided to field force on a monthly basis to enable marketing team to evolve local as well as corporate marketing strategies to achieve corporate objectives.

 

Manufacturing Facilities

The company has its manufacturing facilities for vaccines and pharmaceutical formulations in India in Delhi, at Lalru in Punjab and at Baddi in Himachal Pradesh. The Company is also in the process of setting up new manufacturing facilities for herbal extraction plant and Cell Culture based Vaccines in bulk form at Lalru. The Company expects all these facilities to be completed in the current financial year.

 

The manufacturing facilities have been set up in compliance with international regulatory standards including WHO-cGMP, US-FDA, European Union standards for GMP and Good Laboratory Practices. The Company’s manufacturing expertise lies in various solid, semi solid and liquid oral dosage forms and vaccines such as:

 

·         Oral-solids - conventional tablets/capsules, controlled/delayed release / enteric coating tablets and capsules, tablet in tablet, tablet in capsule, multi layered capsules, hard gelatin / soft gelatin capsules, mouth dissolving / chewable tablets, beads encapsulation, coating: film, sugar and functional, taste masking and fast-dissolving tablets

 

·         Semi-solids - ointments/creams/gels

 

·         Liquids - suspensions/syrups/solutions

 

·         Vaccines - recombinant vaccines, combination vaccines, cell culture vaccines and live vaccines

 

Pharmaceutical Formulations facility at Baddi

The company’s state of the art pharmaceuticals formulations manufacturing facility at Baddi, built in compliance with USFDA standards, received critical acclaim and numerous plant approvals from various regulatory authorities. The facility is now approved for Brazil as well as for several other markets like Yemen, Syria, Ukraine and Ethiopia. The Company is expecting clearances from other regulatory agencies like MCC South Africa and UK MHRA in the current fiscal. The facility has annual capacity for producing 900 million tablets, 120 million hard gelatin capsules, 12 million tubes and bottles each, 150 million soft gelatin capsules and 60 million herbal tablets.

 

Vaccines Formulation facility at Baddi

The new greenfield Vaccine Formulation Plant (VFP) has been commissioned at Baddi in Himachal Pradesh. The plant has two filling lines for bacterial and viral vaccines complying with WHO-cGMP norms for liquid vaccines in pre-filled syringes and liquid and lyophilized vaccines in vials. The total production capacity of this facility is 600 million doses per annum which is scheduled to be increased by the addition of third line to one billion doses per annum by end of current financial year. This facility has increased the production capacity of vaccines substantially in scale and size. It would significantly improve their market presence globally and augment their plans to become a global leader in this field. The three-storey main building consisting of production, quality control and quality assurance departments is spread over approx. 2800 M˛ construction area at each floor. The plant also has a five-storey block of Warehouse-cum-Cold Storage facility admeasuring approx. 2500 M˛ on each floor.

 

Vaccines Formulation facility in Delhi

Vaccines formulation facility in Delhi is a WHO cGMP approved facility with WHO pre-qualification for Oral Polio, Recombinant Hepatitis B Vaccine and combination vaccines Ecovac 4 (DTwP-HepB), Easyfour (DTwP-Hib) and Easyfive (DTwP-HepBHib), The facility has been designed, constructed and maintained to suit production of vaccines following Good Manufacturing Practices. It has three vial filling lines - two lines dedicated to Oral Polio Vaccines both Trivalent and Monovalent and one line dedicated to Hepatitis B and Combination Vaccine.

 

Bulk Vaccines facilities at Lalru, Punjab

The company has three separate dedicated bulk vaccine manufacturing facilities for Recombinant, Bacterial and Tetanus Vaccines at Lalru in Punjab. The facilities have been designed, constructed, adapted and maintained for production of bulk vaccines and other biotechnology based products following current Good Manufacturing Practices (cGMPs) prescribed by WHO and the US FDA. The Recombinant bulk vaccine manufacturing facility received the WHO prequalification for the Hepatitis B Vaccine in bulk form as part of the WHO pre-qualification for Hepatitis B and combination vaccines. The facilities are being used for production of bulk vaccines for manufacture of Hepatitis B and innovative combination vaccines.

 

Research and Development

The company has built a strong R and D base over the last decade to support its business segments, vaccines, formulations and biopharmaceuticals. It has five highly sophisticated ultra-modern R and D Centers with over 280 qualified and experienced scientists for its various research projects. The core area of research and development includes new Vaccine Development, Biopharmaceuticals, protiens, peptides, monoclonal antibodies, Novel Drug Delivery Systems projects, Advanced Drug Delivery System projects and Drug Discovery (small molecules), in compliance with international regulatory standards.

 

For carrying out pre-clinical research, the Company has a state-of-art animal house and facilities for undertaking in-vitro and in-vivo microbiology, pharmacology, safety, efficacy, proof of concept and toxicology studies.

 

The Company has been steadily increasing its expenditure on R and D, both revenue and capital expenditure, and has spent Rs.410.5 million (4.9% of net turnover) in fiscal 2008, as compared to Rs.395.1 million (4.8% of net turnover) in fiscal 2007, an increase of around 3.9% in value terms. Further, the Company has also invested an amount of Rs.666.2 million as capital expenditure on R and D as compared to Rs.482.3 million in previous year, an increase of around 38% over previous year. The total R and D Expenditure has increased by 22.7% to Rs.1076.7 million (13.0% of net turnover) as against Rs.877.4 million (10.6% of the net turnover) in previous financial year. The Company has plans to further strengthen the R and D base to cater to more profitable and expanding niches in vaccine and formulation segments, both in domestic as well as international markets.

 

LAKSH Drug Discovery R and D Center

Laksh, the Company’s state-of-the art Research Center for development of New Chemical Entities (NCEs) (small molecules) at Mohali, Punjab is spread over 70,000 sq. ft. of Laboratory Space and employs more than 70 scientists. Laksh has capabilities to carry out work on different aspects of drug discovery which include medicinal chemistry, in vitro and in vivo biology, analytical and bio-analytical research, pharmacokinetics and drug metabolism studies. The focus of research is on development of NCEs for the treatment of metabolic disorders, CNS and infectious diseases.

 

SAMPANN Drug Delivery R and D Center

A highly fascinating research facility, “SAMPANN Drug Delivery” R and D Center at Lalru, Punjab is spread across 40,000 sq. ft. of laboratory space with superior infrastructure, specialized machinery, adequate resources and skilled manpower to conduct research in the areas of Pharmaceutical Technology, Pharmacology, Analytical Chemistry, Medicinal Chemistry and Natural Products. Sampann also boasts of an in-house Intellectual Property Rights Management Department and Information Science Department.

 

SAMPANN Drug Delivery R and D Center has demonstrated capabilities and ready products and technologies in numerous drug delivery research areas like Spatial Release System (tablet-in-tablet and inlay tablet), Hydrophillic Matrix System, Topical Transdermal Gel, Injectable System for Water Insoluble Drug, Gastroretentive System, Self Emulsifying Drug Delivery System in Softgels, Oromucoadhesive System, Orally Disintegrating System and Taste Masked Delivery System. One of the major achievements had been the successful prosecution by the IPR department leading to the grant of two important drug delivery based patents in the USA. Sampann is primarily focused on:

 

·         Development of value added drug delivery products that would address unmet medical needs, increase patient convenience and compliance, augment the intellectual capital of the organization and contribute towards the organisational business goals, and

 

·         Identification and development of lead compounds from plant sources

 

Ongoing Projects:

SAMPANN R and D center is developing products based on highly specialized drug delivery technologies including Depot Injectable Preparations, Oral Controlled Release tablets/suspensions, Taste masked dosage forms and formulation development of proteins/peptides/ vaccines. A number of new lead compounds from plant sources have been identified and are currently undergoing preclinical development.

 

SM SAHA Center for Vaccine and Biological Research

This modern state-of-the-art Research Center in Delhi, spread across 24,000 Sq. ft of laboratory space, is dedicated to carry out extensive research in vaccines and biologicals using genetic engineering, animal cell culture, fermentation, purification, formulation, serology and analytical techniques. The Center has more than 40 qualified and experienced biologists and R and D. Certain novel vaccines under development at this Center are recombinant anthrax vaccine, polysaccharide conjugate, pneumococcal vaccine and cell culture based Japanese Encephalitis (JE). This Center is also working on some breakthrough vaccines like a novel thermostable pentavalent vaccine which would eliminate the need for cold chain.

 

Biopharmaceutical R and D Center

The Biopharmaceutical R and D Center (BRC) undertakes biopharmaceutical research. BRC utilizes molecular biology and genomics tools and has around 30 hard core molecular biologists, immunologists, biochemists, microbiologists and cell biologists. BRC is developing novel preventive and therapeutic vaccines, therapeutic fully human monoclonal antibodies recombinant biosimiliar products and therapeutic peptides. The focus includes infectious diseases and life style related disorders.

 

BRC has also undertaken the development of a peptide-based technology for alopecia (hair loss) management in-licensed from National Institute of Health, USA and plans to initiate Phase I trials soon. The technology, which is patent protected, stimulates hair growth and regenerates lost hair follicles.

 

 

GRAND R and D Center

The company inaugurated its world class, state of art R and D Center - Global Research and Development (GRAND) in Navi Mumbai on 11th February 2008. This has been set up with a vision to be a Global Leader in the delivery of conventional and biotech based drugs for unmet therapeutic needs of Safety, Efficacy and Compliance involving World Class Science.

 

R and D. Certain novel vaccines under development at this Center are recombinant anthrax vaccine, polysaccharide conjugate, pneumococcal vaccine and cell culture based Japanese Encephalitis (JE). This Center is also working on some breakthrough vaccines like a novel thermostable pentavalent vaccine which would eliminate the need for cold chain.

 

The research at GRAND will be an intersection of Biological, Clinical, Pharmaceutical Sciences and Engineering / Design to develop Novel Drug Delivery Systems (NDDS) based products leading to generation of intellectual property and knowhow. An architectural marvel, GRAND has been designed keeping in view the environment, safety and flexibility to work on current and futuristic areas of drug delivery research. It is well equipped with sophisticated and advanced equipments in the pharmaceutics, chemistry, analytical, bio-analytical and biological sciences and has a modern animal handling laboratory, along with process development laboratory. Around 40 highly skilled and committed research scientists are working in GRAND’s Innovative Team. They would work in making better medicines in the area of Cancer, Diabetes, Organ Transplantation, Hormones, Neuropshychiatric and Metabolic disorders. The Center would be working on Drug Delivery Technologies based on:

 

• Nanoparticle systems for targeted release and reduced side effect profile and bioavailability enhancement

 

• Liposomal systems for prolongation of circulation time of therapeutic agents and delivery of vaccines

 

• Micellar systems for drug targeting and bioavailability enhancement

 

• Microparticle systems for long acting injectables and Pulmonary delivery of therapeutic agents with modulated release

 

• Advanced oral drug delivery systems for Gastroretentive systems, Site specific drug delivery system and Zero order release systems.

 

Quality Assurance

Quality is among the most important reasons to persuade a customer to buy a product. Total Quality Management has always been the cornerstone of the Company which has resulted in achieving greater milestones in the past couple of years. At Panacea Biotec, Quality is in-built in products and services and it is integrated in each step of R and D, Production, Packaging, Storage, Marketing, Sales and Distribution. The Company is committed to adhere to the highest quality standards for products it manufactures and is ensuring this through a highly qualified, techno-innovative and dedicated team.

 

Intellectual Property

The company has in-house capabilities of managing Intellectual Properties and evaluating innovative concepts for patentability; drafting and filing patent applications; filing trademark and copyright applications; processing the IP applications relating to patents, copyrights and trademarks; maintenance of granted/registered Intellectual Property Rights (IPRs); identifying potential new products and markets for its vaccines and formulations; creating IP awareness and motivating research scientists for generation of IPRs, and providing support to its research activities.

 

As on 31st March 2008, the Company had filed over 798 patent applications worldwide including 165 Indian patent applications. Also 52 PCT (Patent Cooperation Treaty) patent applications had been filed. Out of the total number of patent applications filed, 260 patents had been granted / accepted for grant. Besides, The company had in-licensed several patent applications, some of which are under prosecution in different countries of the world. In 2007-08, the Company had filed 20 new Provisional Indian patent applications relating to various drug delivery technologies, synthetic processes, new chemical entities, improved chemical entities, vaccines, pharmaceutical compositions and natural product compositions. Apart from this, 16 PCT patent applications were also filed. The company had been granted 10 patents in India and 23 patents worldwide for different products/technologies during the year.

 

Besides this, the Company had filed 123 applications for registration of Copyrights out of which 80 had been granted. Over 537 applications for registration of Trade Marks (99 applications in 2007-08) had been filed, out of which 265 were registered. 38 International Trades.

 

Subsidiaries, Joint Ventures, Collaborations and Tie-ups

 

Subsidiaries

 

Best on Health Limited. :

The Company acquired Best On Health Limited. (BOH) during fiscal 2000 and is holding 100% shareholding in BOH. BOH owns the Company’s corporate office premises and has given the same on lease to the Company. The Company has invested Rs.1813.9 million in this subsidiary including Rs.1791.0 million as 0.5% Optionally Convertible Non- Cumulative Redeemable Preference Shares invested during the year, to finance its foray in healthcare industry. BOH is in the process of charting out a plan for diversification in related healthcare space as part of its future growth plans. During the year, BOH acquired 100% stake in Radicura and Company Limited, Panacea Hospitality Services Private Limited, Sunanda Steel Company Limited and Panacea Educational Institute Private Limited from the Company.

 

Panacea Biotec FZE:

A wholly owned subsidiary Company namely Panacea Biotec FZE has been formed in Ras-Al- Khemah Free Trade Zone, UAE, with its main objects of, inter-alia, marketing the Company’s patented products in global markets. The investment in this subsidiary was made during the current financial year.

 

Panacea Biotec GmbH:

A Wholly owned subsidiary in Germany being formed with the objectives of, interalia, performing activities relating to registration of the Company’s patented products in European Union.

 

Umkal Medical Institute Private Limited.:

During the current financial year, the Company has taken 75.2% equity stake in Umkal Medical Institute Private. Limited for setting up a multi-super specialty hospital with the most modern A Wholly owned subsidiary in Germany being formed with the objectives of, interalia, performing activities relating to registration of the Company’s patented products in European Union.

 

Umkal Medical Institute Private Limited.:

During the current financial year, the Company has taken 75.2% equity stake in Umkal Medical Institute Private Limited. for setting up a multi-super specialty hospital with the most modern equipments in the National Capital Region of Delhi at Gurgaon, in collaboration with Umkal Group which is running multi-specialty healthcare institutions at Gurgaon and New Delhi.

 

Panacea Biotec, Inc.:

A wholly owned subsidiary Panacea Biotec Inc., US, has been formed during the current financial year with its main objects of, interalia, research, development, manufacture, register, market, distribute, import and export pharmaceutical and biological products etc. in United States.

 

Joint Ventures and Associates

The company has the following joint ventures and associated companies:

 

Chiron Panacea Vaccines Private Limited.:

Chiron Panacea Vaccines Private. Limited. (CPV) is a joint venture company incorporated in fiscal 2005 in India with Chiron Vaccines Holding Srl., Italy (now Novartis Vaccines and Diagnostics), a division of Novartis, world’s fifth largest vaccines manufacturer, for marketing of combination and other vaccines

in India. The Company has invested Rs.23.0 million in CPV for a 50% equity stake.

 

CPV is dedicated to touching the lives of human beings by providing innovative vaccines and excellence in customer service and becoming the most respected and admired organization in preventive healthcare. CPV has gained significant market penetration in the combination vaccine segment in domestic market and has achieved a turnover of Rs.459.9 million and net profit of Rs.35.3 million during the year. CPV has launched Hepatitis A vaccine HAVpur, a new generation vaccine with virosome technology in collaboration with Berna Biotech Limited., Switzerland. CPV has also launched the Company’s Injectable Polio Vaccine PolProtecTM in the Indian market and plans to launch novoHibTM (mono Hib) vaccine in the current financial year.

 

Cambridge Biostability Limited.:

The Company has an existing technical collaboration with Cambridge Biostability Limited. (CBL), a U.K. based Company for developing thermostable vaccines applying CBL’s patented ‘Stable Liquid Technology’ over the Company’s existing range of vaccines. The Company has around 10% stake in CBL and has invested an amount of Rs.207.8 million (Ł2.4 million) therein including Rs.39.8 million (Ł0.5 million) given during the year as a loan convertible into ordinary shares in CBL. CBL is developing its technology for applications in developing countries, Biodefence and multivalent vaccines for sale in developed countries.

 

PanEra Biotec Private Limited.:

PanEra Biotec Private Limited. (PanEra) (formerly Panheber Biotec Private Limited.) is an associate company with 50% equity stake therein. The company has invested Rs.4.2 million in PanEra as its equity contribution. PanEra was incorporated in fiscal 1999 in India as a joint venture between the Company and Heber Biotec S.A, Cuba (“Heber”), an affiliate of the Center for Genetic Engineering and Biotechnology, for the production of recombinant Hepatitis B vaccine in bulk form. During the year, Heber had exit from the joint venture due to strategic reasons and its stake therein was bought by the promoter-directors of the Company. The company has leased out the bulk vaccine production plants at Lalru to PanEra for production purposes. PanEra will continue to be the dedicated supplier of bulk vaccines and antigens for manufacturing vaccines by the Company

 

Collaborations and Tie-ups

Apart from the above, the company has several business relationships with various research institutes, academic universities and commercial corporations, including:

 

National Institute of Immunology, India:

The Company has an exclusive ten-year license agreement with National Institute of Immunology, India for in-licensing of technology and processes for production of tissue culture derived formalin inactivated, Japanese encephalitis vaccine. The technology transfer and training of scientists has been completed and scale-up production of clinical trial purposes and optimization of various analytical and biological test methods, is under progress.

 

Biotech Consortium India Limited.:

The Company has a ten-year in-licensing arrangement with Biotech Consortium India Limited. for the development, manufacture and marketing of anthrax vaccine developed by Jawahar Lal Nehru University, India. Phase I/IIa of human trials have been successfully completed and the Phase-IIb clinical trials are to begin shortly, subsequent to which the company plan to supply the anthrax vaccine to the U.S. government.

 

National Institute of Health, USA.:

The Company has an in-licensing arrangement with National Institute of Health, USA, for use of a peptide based product for generation of hair follicles and hair growth. Pre-clinical toxicology studies will be shortly initiated.

 

Dr. Reddy’s Laboratories Limited.:

The Company has a license and supply agreement with Dr. Reddy’s for the supply of its patented product, Nimesulide Injection, for marketing in India. The Company has another license and supply agreement with it for another patented product, Nimesulide Transdermal Gel, for marketing, distribution and sale in Russian Federation.

 

Nederlands Vaccin Institut (NVI), Netherlands:

The Company has an agreement with NVI for manufacturing and marketing of Inactivated Polio Vaccine (PolProtec) in global markets except Netherlands, Denmark, Norway and Finland.

 

National Research Development Corporation (NRDC), India:

The Company had in-licensing arrangement with NRDC for manufacturing the Foot and Mouth Disease (FMD) vaccine developed by Indian Veterinary Research Institute (IVRI).

 

PT Bio Farma, Indonesia:

The Company has an agreement with PT. Bio Farma, to manufacture and market the Measles Vaccine and plans to supply the vaccine to UNICEF, PAHO and CIS, African, LATAM and Asian Countries in furtherance to Global Measles Reduction Strategy of WHO and UNICEF.

 

Punjab University, Chandigarh:

During the year, the Company has entered into a Memorandum of Understanding (MoU) with Panjab University, Chandigarh for a Drug Discovery Project to identify lead molecules with an aim to bring a New Chemical Entity (NCE) superior to existing marketed products in the therapeutic area of Psychiatric Disorders. The company will undertake their preclinical and clinical development leading to their launch worldwide.

 

Financial Performance

Net Worth:

The Net Worth of the Company has improved to Rs.6972.1 million during the year from Rs.5390.9 million as at the end of previous year registering a growth of around 29%. The undistributed net profit during the year contributed around 79% growth in net worth and the remaining 21% growth has been on account of issue of 1012242 Equity Shares of Re.1 each at a premium of Rs.356.57 per share upon conversion of USD 8.2 million Foreign Currency Convertible Bonds (FCCBs).

 

Loan Funds:

The total loan funds as at 31st March, 2008, has increased to Rs.3982.4 million as against Rs.2134.2 million mainly on account of the Foreign Currency Term Loans raised by the company to part finance its expansion projects including setting up of manufacturing facilities at Baddi and Lalru and R and D Center at Mumbai.

 

Deferred Tax Liability:

The deferred tax liability has increased to Rs.595.0 million as at the end of fiscal 2008 as compared to Rs.383.9 million as at the end of the previous year on account of differences in depreciation and amortization in block of fixed assets as per Income Tax Act, 1961, as per Companies Act, 1956 and Capital expenditure on Research and Development.

 

Fixed Assets:

The net fixed assets have grown to Rs.5343.7 million as against Rs.4136.1 million as at the end of the previous year on account of capital expenditure on ongoing expansion/ new projects. The Company has successfully commissioned the manufacturing facilities for vaccines formulation at Baddi, Bulk vaccine facilities for Tetanus and Bacterial Vaccines at Lalru and RandD Center at Navi Mumbai.

 

Investments:

The investments have increased to Rs.2049.3 million from Rs.229.5 million as at the end of previous year primarily on account of investment of Rs.1791.0 million in its WOS Best on Health Limited to finance its foray in healthcare industry.

 

Net Current Assets: 

The Company’s net current assets have improved to Rs.4151.2 million as against Rs.3536.4 million as at the end of previous financial year. The inventories have increased marginally to 2116.4 million from 2081.6 million, but the inventories to net turnover ratio remained constant at 25% during the year. The receivables increased to Rs.1482.6 million as against Rs.929.2 million as at the end of previous financial year and the receivables to net turnover ratio increased to 18% from 11% during previous year on account of significant value of sale during last quarter. The cash and bank balance declined to Rs.1411.8 million as against Rs.1571.2 million as at the end of previous financial year. Other current assets decreased to Rs.434.1 million as against Rs.491.5 million due to adjustment of advances against the work done during the year.

 

The current liabilities decreased to Rs.1118.5 million as compared to Rs.1397.5 million as at the end of previous financial year. The current liability declined as a percentage of net turnover to 13% from 17% during previous year. The Provisions increased to Rs.175.2 million as against Rs.139.6 million mainly on account of increase in provision for gratuity and leave encashment during the year.

 

Turnover:

The Company has achieved net turnover of Rs.8304.4 million during fiscal 2008 as compared to Rs.8315.5 million for fiscal 2007. The net turnover remained in line with last financial year mainly on account of the rupee’s appreciations against the US Dollar which appreciated by over 10% and resulted in lower sales in equivalent Indian rupee despite increase in foreign currency terms.

 

Segment – wise Turnover

Fiscal

2008

2007

 

Rs. In million

%

Rs. In million

%

Vaccines

6324.5

75.8

6627.2

78.9

Pharmaceutical  Formulations*

1976.0

24.1

1680.5

21.0

Research and Development

3.9

0.1

7.8

0.1

Total

8304.4

100.0

8315.5

100.

 

*Net of excise duty of Rs. 37.8 million and Rs. 82.4 million during the fiscal 2008 and 2007, respectively.

 

Vaccines

In fiscal 2008, the vaccines segment’s turnover contributed Rs.6324.5 million or 75.8% of net turnover, as compared to Rs.6627.2 million or 78.9% of net turnover for fiscal 2007. The institutional vaccine business contributed Rs.6106.3 million as against Rs.6416.2 million during the fiscal 2007.

 

During the year Indian rupee appreciated by over 10% against the US dollar and affected the sales of vaccine segment. The Company addressed the exchange fluctuation risk associated with the foreign currency through a mixed strategy by renegotiating price and partial hedging of receivables with its principal banks.

 

The vaccine sales to JV company for domestic market increased by 3.4% to Rs.218.2 million as against Rs.211.0 million during fiscal 2007. Despite having pricing pressure from entry of generic players, the JV company continued to grow and attained leadership position with an estimated market share of around 45% in the combination vaccine segment.

 

Pharmaceutical Formulations

The pharmaceutical formulations segment’s turnover grew by 17.6% and contributed Rs.1976.0 million or 24.1% of net turnover during fiscal 2008, as compared to Rs.1680.5 million or 21.0%, of the net turnover for fiscal 2007. In the Pharmaceutical Formulations segment the domestic net turnover increased by 15.1% to Rs.1639.5 million during fiscal 2008 from Rs.1424.0 million during fiscal 2007. The export turnover of formulations increased significantly by 31.2% to Rs.336.5 million during fiscal 2008 from Rs.256.5 million during fiscal 2007. The following table sets forth the Company’s gross turnover (inclusive of excise duty) from pharmaceutical formulations in various categories:

 

Expenditures:

Materials and Finished Goods Purchases:

The raw and packing materials consumed and finished goods purchased during the year has decreased by 5.2% at Rs.3658.5 million as against Rs.3859.5 million during the previous financial year. The materials consumption ratio as a percentage to net turnover has improved to 44.1% from 46.4% during previous year.

 

Operating and Other Expenses: 

The operating and  other expenses increased by 10.9% to Rs.694.7  million for fiscal 2008 from Rs.626.4 million for fiscal  2007. However, as a percentage of net turnover, the said expenses increased by 0.9% in fiscal 2008 to 8.4% from 7.5% in fiscal 2007. The increase in these expenses was mainly on account of increase in various operating expenses like power and fuel, insurance, legal  and professional charges and travelling costs etc.

 

Personnel Expenses:

The personnel expenses increased by 17.4% to Rs.924.9 million for fiscal 2008 from Rs.788.0 million for fiscal 2007. The increase was attributable to increase in the manpower and annual increments for the existing employees. As a percentage of net turnover, the personnel expenses increased to 11.1% in fiscal 2008 from 9.5% in fiscal 2007 due to above reasons.

 

Selling and Distribution Expenses:

The Selling and Distribution expenses increased by 40.9% to Rs.460.6 million for fiscal 2008 from Rs.326.9 million for fiscal 2007. This increase was attributable to launch of new SBU OncoTrust and other new initiatives taken by the Company in the pharmaceuticals formulations segment including product registration in export markets, meeting and conferences etc. as part of its marketing strategy. As a percentage of net turnover, the selling and distribution expenses increased to 5.5% in fiscal 2008 from 3.9% in fiscal 2007.

 

Research and Development (R and D) Expenses:

The R and D expenses, excluding depreciation on R and D assets, increased by 3.9% to Rs.410.5 million as against Rs.395.1 million during fiscal 2007. The increase in R and D expenses is mainly on account of the new R and D Centers which got operational during the previous year. This increase was also partially attributable to increase in the personnel cost of existing R and D Centers and research related costs. Depreciation on R and D assets increased by 19.5% during the year at Rs.131.4 million as against Rs.109.9 million during previous financial year. The total R and D expenses (including depreciation) increased to 6.5% of net turnover during fiscal 2008 as against 6.1% during previous year.

 

Finance and Miscellaneous Charges:

Finance and miscellaneous charges increased by 70.2% to Rs.35.4 million during fiscal 2008 from Rs.20.8 million during fiscal 2007. This increase was attributable to the bank charges for arranging long term debt to part finance the expansion projects of the Company. As a percentage of net turnover, the finance and miscellaneous charges increased to 0.4% from 0.3% in fiscal 2007.

 

Interest:

Interest charges decreased by 23.6% to Rs.116.3 million during fiscal 2008 as against Rs.152.2 million during fiscal 2007. The decline in interest charges is attributable to lower utilization of borrowed funds on account of improved financial position. As a percentage of net turnover, the interest charges decreased to 1.4% from 1.8% in fiscal 2007.

 

Depreciation:

Depreciation increased by 21.1% to Rs.430.0 million as compared to Rs.355.1 million during fiscal 2007. Depreciation as a percentage of net turnover increased to 5.2% in fiscal 2008 from 4.3% in fiscal 2007 due to capitalization of new production facilities and R and D Centers and increase in other fixed assets.

 

Profitability Margins:

 

Earnings Before Interest, Tax, Depreciation and Amortisations (EBITDA):

The Company registered EBITDA of Rs.2119.8 million for fiscal 2008 as compared to Rs.2298.8 million for fiscal 2007. The EBITDA margin was 25.5% during fiscal 2008 as against 27.6% during fiscal 2007.

 

Profit Before Tax (PBT):

The PBT was Rs.1904.7 million for fiscal 2008 against Rs.2091.0 million for fiscal 2007. The PBT margins were 22.9% during fiscal 2008 as against 25.1% during fiscal 2007 due to reasons as mentioned above.

 

Profit after Tax (PAT):

The PAT decreased by 9.3% to Rs.1331.7 million for fiscal 2008 from Rs.1468.1 million for fiscal 2007. The PAT margins also declined to 16.0% during fiscal 2008 from 17.7% in fiscal 2007.

 

Earning per Share (EPS):

The basic EPS and diluted EPS stood at Rs.20.1 and 18.9 per share of Re. 1/- as compared to Rs.23.7 and Rs.21.7 per share respectively during fiscal 2007.

 

Cash Flow from Operating Activities:

The liquidity position of the Company remained constant with just 2.1% decline in the Operating Cash Profit during fiscal 2008 to Rs.2275.9 million as compared to Rs.2324.8 million during fiscal 2007. The net cash from operating activities declined by 28.7% during fiscal 2008 primarily due to overall increase in the working capital position during the year on account of increase in inventories, trade and other receivables and decline in current liabilities.

 

Cash Flow from Investment Activities:

Net cash used in investment activities amounting to Rs.4234.1 million was primarily used for acquiring fixed assets for various ongoing expansion projects including new manufacturing facility at Baddi in Himachal Pradesh and Lalru in Punjab, expenditure on modernization of vaccine plant at New Delhi and R and D Centers in Delhi, Mohali and Lalru in Punjab and Navi Mumbai and investment in subsidiaries during the year.

 

Cash Flow from Financing Activities:

The positive cash flow of Rs.2138.2 million from financing activities primarily consists of funds raised by way of long term loans and partially due to increase in the working capital borrowings.

 

Opportunities and Outlook

 

In its 2008 forecast, IMS identifies the following key market dynamics:

 

Growth contribution from top seven markets falls:

In the U.S. and the five largest European markets, sales growth in 2008 is expected to range from 4 – 5 percent. Key factors limiting growth in these markets include: a levelling off of growth from the introduction of the Medicare Part D prescription drug benefit in the U.S.; patent expiration of branded products, 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.

 

“Pharmerging” market growth accelerates:

The seven “pharma emerging” markets of China, Brazil, Mexico, South Korea, India, Turkey and Russia are expected to grow 12 - 13 percent next year, to US$85 - 90 billion. In these markets, there is significantly 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.

 

Wave of genericization continues:

Drugs with approximately US$20 billion in annual sales will face patent expiry in 2008, similar to levels seen over

the past two years. Several leading products are expected to lose market exclusivity in one or more major markets around the world next year. This will help drive growth of generics by 14 - 15 percent next year, to more than US$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 biosimilar epoeitin alfa is marketed across Europe.

 

Patient use of innovative specialty products expands:

IMS anticipates up to 29 innovative new medicines will be launched in 2008, 80 percent of which will be primarily prescribed by specialists. These include four new oncology drugs for treating melanoma, prostate cancer and acute myeloid leukemia. Products used in the treatment of oncology are expected to exceed US$45 billion in value in 2008, contributing nearly 17 percent of audited market growth. Overall growth in the audited specialty-driven market is forecast to grow to US$295 - 305 billion, reflecting 14 – 15 percent growth next year.

 

Intellectual property rights challenged on multiple fronts:

Intellectual property issues in 2008 potentially could have significant long-term effects on patent-holders. The issue of compulsory licensing by nations, court rulings on composition of matter and process patents, granting of patents in India, enforcement of IP rights in China, and reform of patent laws in the U.S. and Europe will all play out to some extent over the course of the year. Each of these areas adds uncertainty about the fundamental model underpinning the R and D-based pharmaceutical industry.

 

Challenges for Pharmaceutical Sales and Marketing:

 

The following key challenges will continue for the global pharmaceutical industry:

 

·         Price Containment

·         Parallel Importation

·         Generic Competition

·         Counterfeiting of drugs

·         Poor Product differentiation

·         Increased competition from me-too-drugs

 

Opportunities

The pharmaceutical industry has traditionally pursued the development of small molecule drugs, and this approach has generated the “mega-blockbusters” that have dominated the industry. However, in recent years, the decoding of the human genome and the resulting plethora of targets for new drugs has created new opportunities for growth for biological therapies.

 

Biotech is currently the fastest growing sector in the drug industry. Pharma companies that are looking to move into the biotech sector need to take steps designed to maintain entrepreneurial spirit of biotech companies. 

 

The major opportunities that exist for pharmaceutical companies to expand their customer base are in the emerging geographical markets of China, India and Eastern Europe, and in growing ageing and obese populations. Successful companies in 2015 will be those that can accurately identify the disease areas that will dominate the market in the future. Closer collaboration between R and D and commercial functions will ensure that resources are used on the products that have the best chance of success in the market, and return on investment is maximized. The global population of seniors and obese patients are rising rapidly and this presents enormous growth opportunities for pharmaceutical companies as age and obesity are risk factors for cardiovascular diseases, certain types of cancer, diabetes and arthritis. The global market for age-related diseases is estimated at US$143 bn and for obesity-related diseases US$154 bn. The generics industry has experienced significant growth over the last few years. However generics companies continue to face difficulties due to price erosion and increased levels of competition. The defining criterion for successful involvement of pharmaceutical companies in the generics sector has been keeping distance between the branded emerging geographical markets of China, India and Eastern Europe, and in growing ageing and obese populations.

 

Successful companies in 2015 will be those that can accurately identify the disease areas that will dominate the market in the future. Closer collaboration between R and D and commercial functions will ensure that resources are used on the products that have the best chance of success in the market, and return on investment is maximized.

 

The global population of seniors and obese patients are rising rapidly and this presents enormous growth opportunities for pharmaceutical companies as age and obesity are risk factors for cardiovascular diseases, certain types of cancer, diabetes and arthritis. The global market for age-related diseases is estimated at US$143 bn and for obesity-related diseases US$154 bn.

 

The generics industry has experienced significant growth over the last few years. However generics companies continue to face difficulties due to price erosion and increased levels of competition. The defining criterion for successful involvement of pharmaceutical companies in the generics sector has been keeping distance between the branded pharmaceutical parent company and the generic subsidiary because the two types of company operate in such different ways.

 

The opportunities have also increased manifold in view of the increased expenditure on healthcare. The key factors underlining pharmaceutical expenditure growth include:

 

·         The ageing population;

·         The emergence of “life-style” drugs;

·         A shift to newer and more expensive drugs;

·         An increase in therapeutic coverage (i.e. new drugs for diseases that previously could not be treated).

·         Innovation in Biotechnology

·         Emerging geographical Markets

·         Unmet need for medication

 

Future Growth Drivers

The company aims to become a leading global research based health Management Company with an established leadership in niche therapeutic areas. The Company has well laid strategy for its future growth with clearly identified growth drivers to sustain and boost its revenues and profitability over the short, medium to long term. The key growth drivers are as under:

 

Short – Term < 2 years

Medium – term 2-5 years

Long years > 5 years

Launch of NDDS and other new products to drive growth in domestic market

Launch of Thermostable vaccines and other new Vaccines Launch of Thermostable vaccines and other new Vaccines  currently under development for paediatric and adults

Out Licensing / Launch of patented products in the developed markets US and Europe

 

 

 

Launch of new vaccines in domestic vaccine market through marketing JV with Novartis

Supply of anti-TB and ARV products to WHO/UNICEF

Potential supply of Anthrax Vaccine to US for national stockpiling program

 

 

 

Supply of combination vaccines to UNICEF / PAHO

Launch of bio- pharmaceuticals and Human Hair Growth peptide based formulation in domestic and global markets 

Diversification in related healthcare segment.

 

 

 

Introduction of organ transplant range products in Latin American markets.

Launch of branded pharmaceutical formulations and vaccines in LATAM markets, SEA Region, S Africa and French speaking African Region

 

 

 

 

 

Launch of patented products in the developed markets of US and Europe

 

 

In addition to above identified growth factors, the company will continue to explore in – licensing of technologies / products from national / international research agencies / institutions to fasten its growth strategy.

 

Operations Review

The total income during the year was Rs.8304.4 million as against Rs.8315.5 million in the previous year. The Company has earned net profit after tax of Rs.1331.7 million for the year ended March 31, 2008 as against Rs.1468.1 million for the year ended March 31, 2007. A detailed discussion on operations for the year ended 31st March 2008 is given in the Management Discussion and Analysis section.

 

Appropriations

Dividend: Continuing with the trend of rewarding its shareholders and simultaneously keeping in view the requirement of funds for the operations and future growth of the Company, the Directors are pleased to recommend a dividend of 100% on Equity Share Capital of the Company for the financial year ended 31st March, 2008.

 

The Company has made a provision for dividend in the books of accounts after considering the application for conversions received, if any, as at the date of the Board Meeting for approval of Financial Statements. The Company is obliged to pay dividend to those bond holders who convert their bonds into Equity Shares after approval of the financial statements by the Board of Directors and upto the book closure date for dividend purposes. Incremental dividend, if any and dividend distribution tax thereon will be paid out of the balance available in the Profit and Loss Account.

 

The dividend on Equity Shares is placed before you for approval at the ensuing Annual General Meeting and if approved, will absorb an amount of Rs.66.7 million. However, the amount of dividend on Equity Shares may increase in case any bonds are converted into Equity Shares before the book closure date.

 

Transfer to General Reserve: They propose to transfer Rs.133.2 million to the General Reserve. An amount of Rs.2845.7 million is proposed to be retained in the Profit and Loss Account

 

Utilisation of FCCBs proceeds

As per the requirements of FEMA guidelines, out of the net proceeds of the bond issue amounting to US$ 96.9 million, balance amount of US$4.0 million was remaining parked overseas in Fixed Deposits as at the end of previous financial year in foreign currency account with State Bank of India, London. The said amount has been remitted to India and utilized during the year for capital expenditure. With this, now the Company has fully uitilized the issue proceeds of Foreign Currency Convertible Bonds. Following are the details of utilization of amount during the year:

 

Joint Ventures and Subsidiaries

The Company’s Joint Venture Company (JV Company), Chiron Panacea Vaccines Private Limited. (“CPV”), was incorporated in fiscal 2005 in India with Chiron Vaccines Holding Srl., Italy (now Novartis Vaccines and Diagnostics), a division of Novartis, world’s fifth largest vaccines manufacturer, for marketing of innovative combination and other vaccines in India. The Company has invested Rs.23.0 million in CPV for a 50% equity stake. CPV has launched Hepatitis A vaccine HAVpur, a new generation vaccine with virosome technology in collaboration with Berna Biotech Limited., Switzerland. CPV has also launched the Company’s Injectable Polio Vaccine “PolProtec” in the Indian market and plans to launch novoHib (mono Hib) vaccine in the current financial year. CPV achieved a turnover of Rs.459.9 million and net profit of Rs.35.3 million during the year. CPV now commands an estimated market share of around 45% in the pediatric combination vaccines segment in India.

 

The Company’s another JV Company, Cambridge Biostability Limited. (CBL), a U.K. based Company, which is progressing further on development of thermostable vaccines applying CBL’s patented ‘Stable Liquid Technology’ over the Company’s existing range of vaccines. The Company has around 10% stake in CBL and has invested an amount of Rs.207.8 million (Ł 2.4 million) therein including Rs.39.8 million (Ł 0.5 million) given during the year as loan convertible into ordinary shares. The Company has further given a loan of Rs.79.8 million (Ł1 million) during the current financial year on similar terms.

 

The Company’s associate Company, PanEra Biotec Private Limited (formerly known as Panheber Biotec Private. Limited.) (“PanEra”), set-up in joint venture with M/s. Heber Biotec S.A., Cuba, an arm of the world renowned bio-technology research facility, Center for Genetic Engineering and Biotechnology, is continuing to meet requirement of bulk vaccines and antigen for the manufacture of Hepatitis B and Combination Vaccines by the Company. Due to strategic reasons, Heber Biotec has withdrawn itself from the joint venture and transferred its entire stake in Panheber to the promoter-directors of the Company. As a result and consequent upon the extinction of Joint Venture, PanEra has become an associate company w.e.f 21.11.07 and has changed its name to PanEra Biotec Private Limited w.e.f. 2nd July 2008.

 

The Company’s wholly-owned subsidiary (WOS) namely Best On Health Limited. (“BOH”), which owns a prime immovable property being used by the Company as its Corporate Office, has charted out a plan for diversification in related health management space as part of its future growth plans. The Company has invested Rs.1813.9 million in BOH including Rs.1791.0 million as 0.5% optionally convertible Non Cumulative Preference Shares invested during the year, to finance its foray into healthcare industry. The Company has further invested Rs.200.0 million during the current financial year on similar terms.

 

Due to strategic reasons, during the year, the Company has sold its entire stake in another WOS, Radicura and Company Limited. to BOH and the same has now become WOS of BOH. Further, during the year, the Company invested an amount of Rs.0.7 million towards acquisition of 100% stake in Panacea Educational Institute Private Limited, Panacea Hospitality Services Private Limited and Sunanda Steel Company Limited. However, due to strategic reasons, the Company has sold its entire stake in these WOS to BOH and as such these WOS companies have become WOS of BOH.

 

Further, with a view to perform the activities relating to registration and marketing of the Company’s patented products worldwide, during the year, the Company had set-up a WOS namely Panacea Biotec FZE in UAE and remitted an amount of Rs.5.47 million (AED 500,000) towards its capital contribution, during the current financial year.

 

During the current financial year, the Company had also remitted an amount of Rs.1.58 million (Euro 25,000) for setting-up another WOS in Germany, namely Panacea Biotec GmbH, with a view to perform activities relating to registration of the Company’s products in European Union.

 

The Company is expanding its portfolio by entering the fast growing healthcare sector and has entered into collaboration with Umkal group to set-up a multi super-specialty hospital with the modern equipments in the National Capital Region of Delhi at Gurgaon. The Company has invested an amount of Rs.56.4 million as a 20% payment towards application and allotment money for acquiring 75.2 % stake in Umkal Medical Institute Private Limited, during the current financial year. With the Company’s leadership in providing innovative medical therapies and Umkal’s long term experience in providing specialized healthcare, the collaboration would be unique and one of its kind.

 

During the current financial year, a wholly owned subsidiary of the Company, Panacea Biotec Inc., US has been incorporated with its main objects of, inter-alia, research, development, manufacture, register, market, distribute, import and export pharmaceutical and biological products etc. in United States. During the year, the Company has also invested Rs.40.0 million with a 40% share in a partnership firm viz. M/s Lakshmi and The Manager with an object of investing/purchasing land, stocks, etc. The said firm has been taken over by a newly formed company, Lakshmi and Manager Holdings Limited with effect from 1st July, 2008. As a result of takeover of the said firm, the Company has been allotted 41,257,126 Equity Shares of Re.1 each aggregating Rs.41.26 million in Lakshmi and Manager Holdings Limited.

 

The Ministry of Corporate Affairs, Government of India, has vide its letter no 47/480/2008 CL-III dated 7th July, 2008, granted the approval to the Company for not attaching the Annual Reports of the subsidiary companies with the Annual Report of the Company for the financial year ended 31st March, 2008. The members, if they desire, may write to the Company Secretary at the Company’s Corporate Office at B-1 Extn./G-3, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi – 110044, India, to obtain the copies of the Annual Report of the subsidiary companies.

 

Consolidated Financial Statements

As stipulated in clause 41 of the Listing Agreement with the stock exchanges, the consolidated financial statements have been prepared by the Company in accordance with the Accounting Standard AS-21 on ‘Consolidated Financial Statements’ read with Accounting Standard AS-27 on ‘Financial Reporting of Interest in Joint Ventures’ and Accounting Standard AS-23 on ‘Accounting for Investments in Associates’, as issued by the Institute of Chartered Accountants of India. The Consolidated Financial Statements of the Company includes therein Consolidated Audited Annual Accounts for the year ended 31st March, 2008 of its Wholly Owned Subsidiary (WOS), Best On Health Limited. (by consolidating its Annual Accounts with those of its WOS, viz. Radicura and Co. Limited, Panacea Educational Institute Private Limited, Panacea Hospitality Services Private. Limited

 

Directors

Mr. M.L. Kalra, Director of the Company demised on 6th January, 2008. He was appointed as a non non-executive Director of the Company in July 2001 and has contributed to the growth of the Company in his position as Director and member of various Committees of the Board of Directors of the Company. The Board wishes to accord its sincere appreciation for the valuable services and support rendered by him during his tenure as a Director of the Company.

 

Mr. Rajesh Jain, the Joint Managing Director of the Company has been ranked amongst the top 40 global, most influential persons who would determine the future course of pharmaceutical industry by an internationally reputed organization, World Pharmaceutical Frontiers. It is a matter of great pride and honour for the medical fraternity, members and employees of the Company to see the name of Mr. Rajesh Jain in the selection. The Directors wish to place on record their appreciation for the able guidance, vision and motivation extended by Mr. Rajesh Jain as the Joint Managing Director of the Company.

 

In accordance with the provisions of the Companies Act, 1956, Mr. Soshil Kumar Jain, Mr. Sumit Jain and Dr. A.N. Saksena, Directors of the Company, are liable to retire by rotation and being eligible, offer themselves for re-appointment.

 

Technology absorption, adaptation and Innovation

 

1. Efforts, in brief, made towards technology adaptation and innovation:

The Company has in-house R and D Centres for developing new products and technologies. It has developed indigenous technologies in respect of the products manufactured by it. Further, in-licensing arrangements have been made for technologies and development of (a) Japanese Encephalitis (JE) Vaccine, (b) peptide based product for generation of hair follicles and hair growth during the previous financial year. Technology for JE Vaccine has been successfully transferred and their scientists are currently working at site for development/ upscaling of the process. The hair growth peptide has been synthesized. The data relating to physical/ chemical

and its efficacy (in animals) has been generated as per the regulatory requirements. During the year the technology for manufacture of Hepatitis B Antigen and Bulk Vaccines has been licensed to the Company, which has already been fully absorbed.

 

2. Benefit derived as a result of the above efforts, e.g., product improvement, cost reduction, product development, import substitution, etc.: Competitive products, Product quality improvement, Product Development and Import Substitution and with in-licensing arrangements, the Company will be able to commercialise these products in domestic and international markets.

 

3. In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year), following information may be furnished:

 

Activities relating to exports

The Company is continuously expanding its global aspirations by improving its international marketing efforts into various markets across the globe and is currently exporting its branded formulations in CIS countries, Asia, Eastern Europe and African region. The Company is also supplying Oral Polio and Hepatitis B Vaccines to various countries through UNICEF against its global tenders. Today the Company’s products are available to people in various countries across the globe. The Company achieved an export turnover of Rs.6442.8 million (including deemed exports of Rs.5797.3 million) during fiscal 2008 as against Rs.6672.7 million (including deemed exports of Rs.5065.0 million.

 

The export turnover of formulations during fiscal 2008 increased by 31% to Rs.336.5 million from Rs.256.5 million during fiscal 2007. The exports to most of the countries where Company has presence have shown excellent growth, the highlights being Russia 35%, Thailand 64% and Ukraine 300% over the previous fiscal. The company introduced several new products and markets; notable mentions include Mycept (Mycophenolate Mofetil) launch in Russia, Pangraf (Tacrolimus) in Srilanka and Nimulid Injection in Ukraine, coupled with the opening up of newer emerging markets like Mongolia, Cambodia and Myanmar. The export turnover of vaccines during fiscal 2008 contributed Rs.309.0 million as against Rs.1352.5 million during fiscal 2007.

 

Initiatives taken to increase export

With a view to increase opportunities, the efforts on international marketing have been intensified. The Company has been adopting a strategy of increasing its international brand image and is rapidly expanding to reach out to more and more countries. It has also obtained brand registration for more than 60 different brands in different countries and is actively exploring opportunities for launching as well as licensing out some of its patented products for manufacture/ marketing in developed countries in Europe, North America and Latin America.

 

The company has identified gastro-intestinal vaccines, Nephrology, Renal Care, pain management and Anti-TB products as major thrust areas for the future. The company is currently pursuing registration related activities in key new markets like Brazil, Mexico, Columbia, Venezuela, Chile, South Africa, Bosnia and Herzegovina, Costa Rica, Philippines and Malaysia, etc. The novel Anti-TB formulations have aroused much interest from partners in key markets and government agencies alike.

 

The company has developed a “promotion intensive” model with focus on key segments and their patented products. This strategy has yielded significant results in exalting the company’s image as a serious player in the pharmaceutical space worldwide.

 

Development of new export markets for products and Export Plans

With a view to increase opportunities, the efforts on international marketing have been intensified. The Company has been adopting a strategy of increasing its international brand image and is actively exploring opportunities for launching as well as licensing out some of its patented products for manufacture/ marketing in developed countries in Europe, North America and Latin America. The Company is also in the process of launching its key patented products in the developed markets of Europe and US

 

(Appeals) against demand of Rs.1.619 millions No Provision is considered necessary in this regard since the Company believes it has a good case based on nature of the case and legal advice obtained by it.

 

·         In respect of Customs Duty demand of Rs.3.999 millions towards Customs Duty on certain items imported as exempted by the Company, the Company has deposited the entire amount under protest. The matter is pending before the Honorable Supreme Court of India. No provision is considered necessary in this regard since the Company believes it has a good case based on nature of the case and legal advice obtained by it. d) In respect of Central Excise Duty demand of Rs.6.596 towards Excise Duty on common inputs used in manufacture of exempted and taxable products, the Company has deposited the entire amount under protest. The matter is pending before Excise Tribunal. No provision is considered necessary in this regard since the Company believes it has a good case based on nature of the case and legal advice obtained by it.

 

Estimated amount of contracts remaining to be executed on Capital Account, net of advances and not provided in the books are as follows:-

 

Particulars

31.03.2008

31.03.2007

 

(Rs. In millions)

Tangibles Assets

306.726

97.312

Intangible Assets

90.701

24.914

Total

397.427

122.226

 

Foreign Currency Convertible Bonds

 

i) Conversion price of ‘US$ 50 Million Zero Coupon Convertible Bonds due 2011’ (FCCBs) has already been fixed at Rs. 357.57 per Share. This Rate is used to determine dilutive Equity Shares against outstanding Bonds.

 

ii) During the year, the following FCCBs were converted into Equity Shares of Re.1 each fully paid up.

 

Particulars

Amount in  US$

Conversion Price per Equity Shares

No. of Shares

US $ 50 Million Zero Coupon Convertible Bonds Due 2011”

8200000

357.57

1012242

 

The above Equity Shares were converted at a pre-determined Exchange Rate of Rs.44.14 equivalent per US$. Consequent to conversion an amount of Rs.326.482 millions was credited to Securities Premium Account.

 

iii) ‘US$ 50 Million Zero Coupon Convertible Bonds due 2011’ February 14, 2011 amounting to US$ Rs.36.800 millions are pending for redemption as on 31st March 2008. Unless these Bonds have been previously converted, redeemed, repurchased and cancelled, Company will redeem these Bonds at a price equal to 142.80% of the outstanding principal amount on the maturity date (including premium amounting to Rs.631.669 millions). Since the redemption of bonds is contingent upon its non-conversion into Equity Shares, the Company has not provided for the proportionate premium on redemption for the period upto 31st March, 2008 amounting to Rs. 243.706 millions. In the opinion of the management, since the likelihood of redemption cannot presently be ascertained, therefore no provision for any liability that may result has been made in the financial statements. The Bonds are considered monetary liability. The Bonds are redeemable only if there is no conversion of the bonds earlier. Hence the payment of premium on redemption is contingent in nature, the outcome of which is dependent upon uncertain future events. The same has been disclosed as a contingent liability.

 

iv)The company has fully utilized the issue proceeds of Foreign Currency Convertible Bonds. Following are the details of utilization of amount during the year out of issue proceeds of Foreign Currency Convertible Bonds:

 

Particulars

Current Year

Previous Year

Capital Expenditure

188.157

1495.702

Investment in Cambridge Biostability Limited

---

168.069

Used for Loan Payment and General

Corporate Purpose

---

2497.692

Issue Expenses

---

136.172

Total

188.157

4297.635

 

The objective of raising of above funds was for

 

(i) Setting up new manufacturing facilities and/or upgrading existing facilities for the manufacture of vaccines, formulations and biopharmaceuticals;

 

(ii) Setting up R and D centers;

 

(iii) Making acquisitions;

 

(iv) Incurring other capital expenditures;

 

(v) Repayment of debt; and

 

(vi) Any other use as may be permitted under applicable laws and regulations, from time to time. However, it is not possible to bifurcate the total amount raised in specific areas.

 

vii) The Company has made a provision for dividend in the books of account after considering the application for conversions received, if any as at the date of the Board Meeting held for the approval of Annual Financial Statements. Company is obliged to pay dividend to those bondholders who convert their Bonds into Equity Shares after approval by the Board of the financial statements and upto the book closure date for dividend purposes. Incremental dividend and dividend distribution tax thereon, if any, will be paid out of the balance available in the Profit and Loss Account.

 

FIXED ASSTES:-

 

A) Tangible Assets

·         Land – Leasehold

·         Buildings

·         Leasehold Improvements

·         Plant and Machinery

·         Vehicles

·         Furniture and Fixtures

·         Office Equipments

·         Computer Equipments

 

B) Intangible Assets

·         Patents, Trademarks and Design

·         Softwares

·         Website

·         Product Development

 

(Details of Loans and advances to Subsidiaries, Associates and Parties in which directors are interested as required by clause 32 listing agreement):-

 

Particulars

31.03.2008

31.03.2007

 

(Rs in millions)

a) Loans and advances  to wholly owned subsidiaries

 

 

- Best on health Limited

 

 

Balance Recoverable

---

21.000

Accrued interest receivable  on loan

---

0.186

Maximum amount due to any time during the year

1791.000

21.400

- Panacea Educational Institute Private Limited

---

 

Maximum amount due at any time during the year

320.000

---

Panacea Hospitality Services Private Limited

---

 

Maximum amount due at any time during the year

320.000

---

- Sunanda Steel Company Limited

---

 

Maximum amount due at any time during the year

140.000

---

- Radicura and Company Limited

---

---

Maximum amount due at any time during the year

620.000

---

 

 

 

b) Loan to Joint Venture Company

---

 

- Cambridge Biostability Limited

39.778

---

Maximum amount due at any time during the year

41.784

 

 

 

Persons employed throughout the Financial year ended 31.03.2008, who were in receipt of remuneration for the year in which the aggregate was not less than Rs. 2.4 millions

 

Name

Designation

And Nature of duties

Remuneration

(Rs. In millions)

Qualifications

Experience

(years )

Date of Commencement of Employment

Age

(Years)

Mr. Soshil Kumar Jain

Chairman

57.567

Pharmacists

53

02.02.1984

75

Mr. Ravinder Jain

Managing Director

65.044

Matriculate

28

15.11.1984

51

Mr. Rajesh Jain

Joint Managing Director

49.420

B.Sc

PGDBM and Advanced Management  Diploma  in Market Research

24

15.11.1984

44

Mr. Sandeep Jain

Joint Managing Director

49.251

B.Com

23

15.11.1984

42

Mr. Sumit Jain

Director – Operations  and Projects

3.102

B.Com, MBA

5

16.05.2003

27

 

 

List of person having controlling interest together with their relatives / associates*)

 

Key

Management

Personnel

Father

Mother

Wife

Brother

Sister

Son

Daughter

Associates

 

 

 

 

 

 

 

 

 

Mr.

Soshil Kumar Jain

---

---

Mrs. Nirmala Jain

---

---

Mr. Ravinder Jain

 

Mr.

Rajesh Jain

 

Mr. Sandeep Jain

 

Mr.

Soshil Kumar Jain (HUF)

Mr.

Ravinder Jain

Mr.

Soshil Kumar Jain

Mrs.

Nirmala Jain

Mrs. Sunanda Jain

Mr. Rajesh Jain,

 

Mr. Sandeep Jain 

---

Mr.

Sumit Jain

 

Mr. Nipun Jain

Ms. Radhika Jain

Mr. Ravinder Jain (HUF)

Mr.

Rajesh Jain

Mr.

Soshil Kumar Jain

Mrs.

Nirmala Jain

Mrs. Meena Jain

Mr. Ravinder Jain

 

Mr. Sandeep Jain 

----

Mr. Ankesh Jain

 

Mrs. Harshet Jain

 

Mr.

Taric Jain

---

Mr.

Rajesh Jain (HUF)

Mr.

Sandeep Jain

Mr.

Soshil Kumar Jain

Mrs. Nirmala Jain

Mrs. Pamilla Jain

Mr. Ravinder Jain

 

Mr.

Rajesh Jain

---

Mr.

Tanish Jain

Mrs. Priyanka Jain

Mr. Sandeep Jain (HUF)

Mr.

Sumit Jain

Mr.

Ravinder Jain

Mrs. Sunanda Jain

---

Mr.

Nipun Jain

Mrs. Radhika Jain

---

---

---

 

 

Following are reimbursement of expenses from Panheber Biotec Private Limited which have been netted off with related expenses head

 

Particulars

31.03.2008

31.03.2007

 

(Rs. In Millions)

Salaries, Wages and Bonus

21.834

17.734

Power and Fuel , etc

20.393

6.916

Repair and Maintenance – Plant and Machinery

1.635

18.336

Repair and Maintenance – Others

8.983

0.422

Total

52.845

43.408

 

Auditor’s remunerations: - (Including the following)

 

Particulars

31.03.2008

31.03.2007

 

(Rs. In Millions)

Statutory Auditors

 

 

- Statutory Audit

3.400

2.000

- Quarterly Limited Reviews

1.348

0.900

- Certificate

0.113

0.035

- Out of Pocket expenses

0.069

0.193

 

4.930

3.128

 

 

 

Tax Auditors *

0.140

0.125

Cost Auditors *

0.034

0.030

 

*Included in Legal and Professional charges

 

 

WEBSITE DETAILS:

Subject is India’s highly progressive research based health management company involved in research, manufacturing and marketing of branded pharmaceutical formulations, vaccines and natural products. The product portfolio includes highly innovative prescription products in important therapeutic areas like pain management, diabetes and cardiovascular management, renal disease management, osteoporosis management, anti-tubercular, gastro-intestinal care products and vaccines. The flagship brands of the company- Willgo for pain management; Glizid and Glizid-M for diabetes; Panimun Bioral and Mycept for kidney transplant occupy leadership positions in their therapeutic segments.  This is in persuit of marketing strategies to build brands and drive the growth of the company.

 

The vaccines portfolio consists of oral polio vaccines (type I and type III), Enivac-HB (Hepatitis B vaccine), Enivac-HB Safsy, Ecovac-4 (DTwP+Hep B), Easyfour (DTwP+Hib), Easyfive (DTwP+Hep B+Hib). Vaccines in the offing are- Anthrax, Dengue, Japanese encephalitis and several others. Subjecthas earned the distinction of being a WHO pre-qualified supplier of oral polio and Hepatitis-B vaccines and are in the process of obtaining similar pre-qualifications for other vaccines.  Subject is contributing in disease prevention and reducing the child mortality.

 

Ardent Research and Development efforts have always been a great strength of the company. The main research areas are New Chemical Entities (NCE), New Biological Entities (NBE) Novel Drug Delivery System (NDDS) based pharmaceutical formulations, Novel peptides and human monoclonal antibodies and Vaccine development. The company has developed four distinguished, ultra modern, state-of-art R and D centers in different locations, having internal capabilities for constant research, with over 200 highly professional and skilled scientists engaged in various aspects of research.

 

Focused research efforts have led to grant of worldwide product patents valid in over 60 countries for subject. As on March, 2007, the company had filed 490 patent applications in various parts of the world including India. Of these, 163 have been granted patent and others are under various stages of examination or publication by the patent authorities. Some of these countries are USA, U.K., France, Germany, Italy, Sweden, Denmark, Spain, Finland, Switzerland, The Netherlands, New Zealand, Mexico, Brazil, Nigeria, Zimbabwe, Australia, South Africa, Japan, Russia, Canada, Ukraine, Korea and China.

 

The exclusive products based on patented Drug Delivery System include Panimun Bioral (Cyclosporine), Willgo, Thank God (for comprehensive management of haemorrohoids), Xeed (anti-tubercular FDC with innovative Drug Delivery for optimum bioavailability of Rifampicin), Nimulid Safeinject,  Nimulid MD, Nimulid Transgel. 

 

Commencing fiscal 2008, the company plans for international marketing of novel NDDS based pharmaceutical formulation products to the international markets, like USA, U.K., Germany, France, Latin American countries and Italy through marketing collaborations and are on the look out for partners for distribution and marketing.

 

Subject is the third largest biotechnology company (as per ABLE Survey, 2006), as well as among the top 50 pharmaceutical companies (as per ORG IMS July 2006) of India. To tap newer opportunities, Subject has organized its formulation marketing into four   SBUs - PRO, Diacar, GROW and Critical Care, which enables it to respond to changes in the industry and marketplace. The vaccines are marketed through Chiron Panacea Vaccines, a 50:50 joint venture with Novartis Vaccines, U.K

 

Subject has identified brand building in exports as its thrust area and it has significant presence in the global markets including the CIS, Africa, the Middle East and Asia. The company is actively exploring opportunities for launching as well as licensing out some of their patented products for manufacture/marketing in developed countries in Europe, North America and Latin America.

 

Subject has significant collaborations and joint ventures with leading national and international research organizations and corporations. With Cambridge Biostability Limited, U.K., Subject has entered into strategic collaboration for developing thermo stable vaccines; with National Institute of Immunology, India for Japanese Encephalitis candidate vaccine, Biotech Consortium India Limited for the development, manufacture and marketing of Anthrax vaccine, worldwide. With National Institute of Health, USA, Subject has entered into an in-licensing arrangement for use of a peptide based product for generation of hair follicles and hair growth. Subject has also collaborated with Netherlands Vaccine Institute for Inactivated Polio Vaccine; NRDC- India for Foot and Mouth Disease vaccine for veterinary use and Bio Farma-Indonesia for Measles vaccine.

 

The company has ultra modern, state-of-art production facilities at Baddi (Himachal Pradesh), Larlu (Punjab) and Delhi for manufacturing tablets, capsules (including soft gelatin), ointments (transgel formulation) liquids, herbal formulations and vaccines. The facilities are WHO cGMP compliant.

 

Subject has established a countrywide sales and marketing network in India through a vibrant sales force of more than 1,000 professionally trained and highly motivated marketing and sales professionals and efficient logistic network of 23 sales depots/carrying and forwarding agents all over India to make its products available at all places and at all times.

 

Vision and Values

 

·         Mission      –         Innovation in Support of Life

·         Vision        –         Leading Health Management Company

·         Goal            –         To meet every healthcare need with a Subject brand and service

·         Objective    –         Take Ideas from Grey Cell to market in a Proactive Manner

 

 

Success story

 

 

2008

Foray into Healthcare Delivery –collaboration to set-up 220 bed multi super-specialty hospital in NCR

 

WHO prequalification for fully liquid innovative combination Pentavalent vaccine, EasyFive* against five deadly infectious diseases (DTwP+ Hep B+ Hib) of early childhood.

 

Granted a patent from US Patent and Trademark Office for their product Thank GodTM (Euphorbia Prostrata) for effective management of hemorrhoids and piles (Patent No. 7,371,412 B2)

 

 

 

2007

Vaccine Formulation Plant at Baddi

 

Research Agreement with Punjab University to develop New Chemical Entities for Psychiatric Disorders

2006

WHO cGMP complaint ultra modern Pharmaceuticals formulation facility at Baddi, Himachal Pradesh.

 

Landmark collaborations with The Netherlands Vaccine Institute (The Nederlands Vaccine Institute (NVI)) for manufacture and marketing of finished Inactivated Polio Vaccine (IPV) and a number of IPV based combination vaccines in India and across the globe.

 

Collaboration with PT.Bio Farma to manufacture and market Measles Vaccine. 

 

Inauguration of Biopharmaceutical R and D Centre at New Delhi

 

Pre-Qualification Certification from WHO for Supply of Recombinant Hepatitis-B Vaccine to UN Agencies.

 

Collaboration with National Research Development Corporation (NRDC) for technology transfer of Foot and Mouth Vaccine.

 

2005

In-licensing agreement with National Institute of Health, USA for Hair Growth Hormone

 

2004

Collaboration with Cambridge Bio-stability, UK, for Thermo Stable Vaccines

 

2004

Marketing Joint Venture with Chiron (now Novartis) Vaccines, UK

 

2004

In-licensing agreement with National Institute of Immunology, New Delhi, for Japanese Encephalitis Candidate Vaccine

 

2002

Commissioning of Recombinant Vaccine Production Plant

 

2002

In-licensing Agreement with Biotechnology Consortium of India for Development and Commercialization of Anthrax  Vaccine

 

2001

R and D tie up with European MNC

 

1997

First Product Patent in Several Countries

 

1995

State -of the- art Drug Delivery R and D centre at Lalru

 

1995

IPO of Equity Shares of Rs.180 Million

 

1993

Merger of Panacea Drugs (P) Limited and Radicura Pharma to form subject.

 

1989

Pharmaceutical formulations plant at New Delhi, under the name of  Panacea Drug P Limited .

 

1988

Established a plant for vaccines production at New Delhi, under the name of Radicura Pharma

 

1984

Panacea Drug (P) Limited was formed

 

 

Vaccines

In pursuit of its mission, subject is making immense contribution in disease prevention an reducing child mortality, through innovative vaccine development, production and marketing.  Subject has significant presence in prophylactic vaccine market that adhere to international standards of manufacturing and clinical development.  Subject has made available several paediatric vaccines, namely Trivalent, Monovalent (Type I and Type III) Oral Polio Vaccine, Enivac HB (recombinant Hepatitis B) Vaccine, innovative Combination Vaccines such as Ecovac4 (recombinant Hepatitis B and DTP), Easyfour (Haemophilus Influenza type B (Hib) and DTP), Easyfive (Hib, DTP and Hepatitis B). The Company has registered consistent growth in revenue which is contributed by vaccines supplied to UNICEF as well as growth in supplies to the domestic private vaccine market through the joint venture company, Chiron Panacea Vaccines Private Limited. 

 

Subject is prequalified supplier of OPV, Hepatitis B vaccines (Enivac HB), Easyfour (DTP+Hib) and Ecovac (DTP+HepB) to UN Agencies. 

 

The company has also started supplying recombinant Hepatitis B Vaccines (Enivac-HB) to UNICEF against their global tenders. 

 

The development of new vaccines targeting life threatening diseases will remain their focus in R and D.

 

 

MANAGEMENT TEAM

 

Subject has support from a team of Visionary Leaders with great values and high expectations.  The team of board of directors have hands on experience in Drug Development including risk assessment, corporate collaborations, clinical program management, regulatory affairs, Finance Management, successful product commercialisation and customer relationship management.

 

Whole-Time Directors (Promoters)

 

Mr. Soshil Kumar Jain, Chairman

Pursuing their mission 'Innovation in Support of Life' to make human lives happier and healthier, they will continue to remain rooted in their values of quality, innovation and continuous learning

 

Email- soshiljain@panaceabiotec.com

 

Mr. Ravinder Jain, Managing Director

Supporting life through better health management, not merely the absence of disease, is their aim and in this they are partners in Doctor's vision of a disease free world

 

Email- ravinderjain@panaceabiotec.com

 

Mr. Rajesh Jain, Joint Managing Director

An unwavering commitment to Brand building and innovation has recognised Subject to an amiable position. 

 

They have embarked on a journey to Drug Discovery and Drug Delivery through innovation to contribute towards a healthy living.  They are poised to enter a period of great opportunity and face new challenges with a pool of talent and expertise. 

 

Building brands in Domestic and International Marketing with leadership is highly fascinating and a passion at subject.  It involves recognising that people all over the world have different cultures and needs. 

 

Understanding regional differences and needs will make the quintessence of Marketing.  Subject is stepping up gears to exhibit exemplary performance in developing marketing strategies across different regions of the World. 

 

If a day comes and there is a healthcare need, the need will be met by a Subject brand / service.

 

Email- rajeshjain@panaceabiotec.com

 

 

Mr. Sandeep Jain, Joint Managing Director

They have developed a powerful Finance Management support platform, allowing them to gain greater insight into various financial activities.  Their strong revenue growth will help to turn business strategies into practical action plans.  They look forward to achieve greater competitiveness, more profitability and higher share values through innovation in Finance Management.

 

Email- sandeepjain@panaceabiotec.com

 

 

Mr. Sumit Jain, Director

Quality is among the most important reasons, which can persuade a customer to buy a product. Consistent pursuit of Total Quality Management, which I am proud to state, has always been a cornerstone of Subject and this pursuit has resulted in achieving greater milestones in the past couple of years.


Email- sumitjain@panaceabiotec.com

 

 

Patents

 

Subject has an in-house Intellectual Property Management Department which supports its development of patent applications, files patents, identifies potential new products and markets for its vaccines and pharmaceutical formulations and provides support to its research activities.  As on March, 2007 – 490 patent applications have been filed in various parts of the world including 82 patent applications and 20 Patent Co-operation Treaty applications with the Indian patent office. The exclusive products based on patented Drug Delivery System include Panimun Bioral (Cyclosporine), Willgo, Thank God (for comprehensive management of haemorrohoids), Xeed (anti-tubercular FDC with innovative Drug Delivery for optimum bioavailability of Rifampicin), Nimulid Safeinject, Nimulid MD, Nimulid Transgel.

 

Besides this, the Company has filed 123 applications for registration of Copyrights out of which 77 have been granted and 46 are pending. Around 400 applications for registration of Trade Marks field out of which 223 were registered.  12 International Trade Mark Applications were filed and all have been granted.

 

 

Clinical Research

 

Before any drug or formulation makes it to the chemist shelf, it must pass a lengthy approval process involving clinical research professionals.


Clinical trials allow medical profession and patients to gain information about the benefits, side effects and possible uses of new drugs as well as new ways to use existing medicines. It augments the process to translate results of basic scientific research into better ways to prevent, diagnose and treat various diseases.

 

Advances in drug development and biotechnology offer enormous opportunities to conduct clinical trials. This requires a coordinated approach to enhance interdisciplinary, scientifically driven clinical trials. Subject is playing a significant role in facilitating international clinical trials and exploring new opportunities to speed discovery, development and delivery of products to improve the lives of people.


Subject is igniting its potential towards quality clinical research. In fact, strengthening clinical research will be a driver for introducing novel healthcare products for patients with unmet medical needs.


Subject carefully designs research study projects to investigate medical treatment in people, under the supervision of highly qualified professional investigators.


The organization has been involved in the clinical trials of Vaccines and other drugs in the management of Pain, Diabetes, Hyperlipidemia, Osteoporosis, Renal Disease, Fever, Inflammation and Allergy, Tuberculosis and Gastrointestinal diseases.


Subject undertakes monitoring and evaluation throughout the whole life cycle of its products. Subject with a holistic approach generates data on non clinical (pre-clinical), clinical (Phase I, II, III, IV) and post marketing, besides several BA/BE studies. Global expansion strategy is being carved out to conduct highly specialised clinical studies across geographical locations.


Clinical trials are categorized into four phases. Phase I trials (Human pharmacology) are directed towards estimation of safety and tolerability with the initial administration into humans. Phase II trials (Therapeutic Exploratory Trials) evaluate effectiveness for particular indication in 100-300 patients and determine common side effects. Phase III trials (Therapeutic confirmatory trials) confirm the therapeutic benefit in 1000-3000 patients. Phase IV trials are studies (other than routine surveillance) performed after drug approval and related to the approved indication(s). They include additional drug-drug interaction(s), dose-response or safety studies and trials designed to support use under the approved indication(s), e.g. mortality/morbidity studies, epidemiological studies etc.

For all clinical trials there is prior need for permission granted by the Licensing Authority, and the approval obtained from the respective ethics committee(s). All trials Investigator(s) should possess appropriate qualifications, training and experience and should have access to such investigational and treatment facilities as are relevant to the proposed trial protocol.


It is the responsibility of the sponsor of the clinical trial for implementing and maintaining QA systems to ensure that the trial is conducted and data generated, documented and reported in compliance with the protocol and GCP Guidelines. Apart from the sponsor there are certain responsibilities that lie with Investigator(s) and Ethics Committee. The investigator is responsible for trial conduct according to protocol and the GCP Guidelines and documentation for the tasks performed by them while the Ethics Committee is responsible to safeguard the rights, safety and well being of all trial subjects.


Subject has efficient infrastructure to timely initiate all stages of clinical trials, generate and communicate data in the community and provide information to clinicians, patients and advisory groups. Its clinical research function is re-engineering to incorporate multidisciplinary research, translational research, integrated clinical research network and clinical research informatics.


Subject has a highly energetic and resourceful team of clinical researchers engaged to execute well designed clinical studies strictly compliant to GCP in India and across the world

 

 

Alliances

Subject enjoys a rich tradition of collaborations and joint ventures with various industry players and business relationships with national and international research institutes, academic universities and commercial corporations for the purpose of securing in-licensing, out sourcing and other business opportunities and to develop strong product portfolio.

 

Umkal Medical Institute Private Limited (UMI)

The company has acquired majority stake in Umkal Medical Institute Private Limited. (UMI), a company promoted by Dr. Umesh Gupta to set-up a multi super-specialty hospital with the most modern equipment in the National Capital Region of Delhi at Gurgaon.

 

Nederlands Vaccine Institute (NVI), Netherlands.

The Company has entered into an agreement with NVI for manufacturing and marketing of Inactivated Polio Vaccine in global markets except Netherlands, Denmark, Norway and Finland.

 

National Research Development Corporation (NRDC), India.

The Company has an in-licensing arrangement with NRDC for manufacturing the Foot and Mouth Disease (FMD) vaccine developed by Indian Veterinary Research Institute (IVRI).

 

PT Bio Farma, Indonesia.

The Company has entered into an agreement with PT. Bio Farma, Indonesia to manufacture and market the Measles Vaccine and plans to supply the vaccine to UNICEF, PAHO and CIS, African, LATAM and Asian Countries in furtherance to Global Measles Reduction Strategy of WHO and UNICEF.

 

 Chiron Panacea Vaccines Private  Limited (“Chiron Panacea”)

Chiron Panacea is a joint venture company incorporated in fiscal 2005 in India with Chiron Corporation, U.K. (now Novartis Vaccines), world’s 5th largest Vaccine group, for marketing of combination and other vaccines in India. The Company has invested Rs.22.9 million in Chiron Panacea for a 50.0% equity stake.

 

 

National Institute of Health, USA.

The Company has an in-licensing arrangement with National Institute of Health, USA, for use of a peptide based product for generation of hair follicles and hair growth. Pre-clinical toxicology studies will be shortly initiated.

 

 

National Institute of Immunology, India.

The Company has an exclusive ten-year license agreement with National Institute of Immunology, India for in-licensing of technology and processes for production of tissue culture derived formalin inactivated, Japanese encephalitis vaccine. The technology transfer and training of scientists has been completed and scale-up production for clinical trial purposes and optimization of various analytical and biological test methods, is under progress.

 

Cambridge Biostability Limited ., U.K.

The Company has an existing collaboration with Cambridge Biostability Limited (CBL), a U.K. based Company for developing thermostable vaccines applying CBL’s patented ‘Stable Liquid Technology’ over the Company’s existing range of vaccines. During the year, the Company entered into a joint venture and made investment of Rs.168.07 Million (Ł1.94 Million) for acquiring 10% of the share capital in CBL. CBL was formed in 1998 in England and Wales and has a R and D facility in Cambridge, which is developing its technology for applications in developing countries, Biodefence and multivalent vaccines for sale in developed countries.

           

Biotech Consortium India Limited

The Company has a ten-year in-licensing arrangement with Biotech Consortium India Limited for the development, manufacture and marketing of anthrax vaccine developed by Jawahar Lal Nehru University, India. Phase I/IIa of human trials have been successfully completed and the Phase-IIb clinical trials are to begin shortly, subsequent to which the company plan to supply the anthrax vaccine to the U.S. government. For this purpose, the Company plans to initiate discussion with a U.S. based vaccine company for collaboration.         

 

Domestic

 

Domestic Sales and marketing Network

Subject has engineered its sales and marketing network for pharmaceutical formulations into strategic business units (SBUs), which comprise Critical Care, Diacar, Procare and Growcare. The company has also moved ahead to launch another new SBU, viz. Onctrust.

 

The aim of each SBU is to attain leadership position in its respective markets and establish brand equity in respective therapeutic segment by implementing the concept of Customer Relation Management (CRM) for better coverage and servicing of customers. The SBUs promote a portfolio of brands with a special focus on Orthopedicians, Cardiologists, Diabetologists, Physicians, Nephrologists, Pulmonologists, Surgeons, Dentists, ENT (Ear, Nose and Throat) specialists, Pediatricians and Gastro – Enterologists.

 

Critical Care

Critical Care, a Super Speciality SBU of the company, is focused on Nephrology therapy in the highly specialized organ transplantation and dialysis management segments. It offers a complete range of pre- transplant and post transplant therapies. The SBU has carved a niche in super – specialty segment and created a scientific image. The SBU is rightly poised for achieving clear leadership in the Nephrology and Transplantation segment.

 

The brand portfolio of this SBU includes Panimun Bioral capsules and solution, Mycept tablets and capsules, Pangraf capsules, Fosbait tablets and Overcome injection.

 

They have launched Siropan an adjunct immunosuppressive agent to fulfill the transplant basket. Similarly Mycept saw its brand extension Mycept –S introduced to have a complete MPA basket with increased market share.

 

The SBU has exhibited over 20% growth during the year. Pangraf continues to be the leading brand in Tacrolimus market with 68% growth. Similarly Panimun Bioral also showed a growth of 7% in Cyclosporine market. Mycept achieved 6% growth and grabbed 32% market share in the Mycophenolic Acid market. Fosbait being the 1st brand of Lanthanum Carbonate to be launched in India achieved 6% market share in the Phosphate binder market and showed significant growth. Overcom ensured strong presence in the Dialysis Centres with 26% growth.

 

Diacar

Diacar is a strong pillar and the highest contributing SBU of the company with dedicated marketing and sales infrastructure for Diabetes and cardiovascular management. Diacar SBU is valued at Rs. 460 million (ORG IMS Mar’07 MAT). The SBU promoters the brands to the target specialists viz. Endocrinologists, Diabetologists and Physicians in a fiercely competitive scenario and has achieved significant leadership position in Oral anti-diabetic segment.

 

The flagship brand of the SBU Glizid M is the no.1 brand while Glizid is the no.2 brand in their respective categories. Glizid M occupies the 133rd position amongst 30,000 odd pharmaceutical brands.

 

The other brand portfolio of this SBU includes Pioryl, Betaglim M, Metalong, Oglo, Gliben Total, Glizid total, Glim total, Threpo, Myelogen Forte, Lower A and Lower EZ.

 

New Launches contributor to growth: The SBU has aggressively forayed into the intensely spirited cardiac segment with the launch of Threpo (triple fixed Dose Combination of Atorvastain, Ramipril and Asprin) and lower family of brands intended to lower high cholesterol levels. Inrica and Myelogen Forte ( a first time in country formulation with Enzogenol) and metlong P (FDC of Metformin ER and Pioglitazone) were launched during the year. Total, family of brands launched towards the end of FY 06-07 are gearing up and are well poised for growth.

 

Overall Diacar SBU has grown over 28% in the year. The Power group of brands has achieved high growth in this financial year with Betaglim family at 84%, Metalog family at 84%, Metalog family at 33% and Glizid MR at 22% (March YTD). Star Brands i.e Glizid and Glizid M have grown by 9% in FY 06-07.

 

 

Procare

Procare SBU of the company endeavors to consolidate and strengthen its image in the field of chronic health care management with specific focus on pain and arthritis management, osteoporosis and gastrointestinal disorders. It promotes a portfolio of brands with special focus on Orthopedicians, Surgeons, Dentists, ENT specialists and Gastroenterologists apart from Consulting Physicians and General Physicians.

 

Some of the major brands of Procare across different therapeutic segments are:

 

Pain management: Nimulid, Nimulid Nugel, Nimulid Safeinject, Willgo, Nimulid SP, Nimulid MR, Nimulid HF, Softdiclo, Softdiclo Acute and Dolzero.

 

Anti – infective - Giro and Ocimix

 

Gastro-intestinals - Livoluk Suspension and ODpep

 

Anti-Osteoporosis - Alphadol, Alpadol C, Calcom and Kingcal

 

Anti – rheumatics - Kondro OD, Kondro and Cilamin

 

 

Growcare

Growcare is the respiratory and pediatric business of the company. This business was carved out to this SBU as part of the long term strategy to enter the high growth Respiratory Therapy. Growcare is a Rs. 230 million business with total field strength of around 350 people and services more than 50,000 doctors across the country, comprising of different specialties like Chest Physicians, Consulting Physicians, Pediatricians and General Physicians. Consulting Physicians, Pediatricians and General Physicians. Twenty Six different products are marketed with presence in multiple Therapy areas.


Some of the popular brands of Grow care are:

 

Anti TB - Xeed 2, Xeed 3E and Xeed 4 tablets (Fixed dose combinatios), Myser and Myobid

 

Pain Management - Nimulid MD, Nimulid MD Kid (mouth dissolving) tablets and Nimulid Suspension, Nimulid Trangel, Upright, Upright SP and Upright MR

 

Cough preparations - Toff MD, Toff DC and Toff Expectorant

 

Anti-haemmorohidal – Thank God Capsules and Thank God Cream

 

The SBU achieved annual growth of 39%. The performance was driven by flagship brand Nimulid MD which clocked sale of Rs. 60 million and registered a growth of 30%. Brands like Thank God contributed significantly to the SBU performance. As per ORG IMS metrics the SBU has been outperforming the market.

 

 

Oncotrust

Subject has plans to foray into oncology segment to provide treatment for Cancer, viz, breast cancer, brain tumor, ovarian cancer, pancreatic cancer, prostrate cancer and colorectal cancer. ‘Oncotrust’ would be the new Strategic Business Unit (SBU) with the total strength of around 50 sales specialists on oncology who would be responsible for marketing these drugs. The aim is to register sales volumes of Rs. 150-200 million in oncology chemotherapy segment in the next three years. The Company feels that it would be able to launch novel drug delivery based anti-cancer drug in the next 2-3 year period.

 

 

InternATIONAl

 

International Marketing

Subject is uniquely able to take its roots to international marketing. International marketing being hard and systematic, Subject accepted the challenge and started spreading its wings across various global locations. Having unique product line in its brand portfolio with highly professionally designed marketing strategies and satisfying various regulatory demands, the company has entered in various international markets.


The Company has started international marketing for its branded formulations in CIS countries, South East Asia, Eastern Europe and African Region. Today the Company’s products are available to people in over 35 countries across the globe.


The Company achieved a remarkable export turnover by way of supplies of Oral Polio Vaccines to various countries including Abidjan, Afghanistan, Angola, Bangladesh, Cameroon, Chad, Congo, Ethiopia, Indonesia, Kenya, Myanmar, Nepal, Nigeria, Somalia, Sudan, Turkey and Uganda through UNICEF against its global tenders. The company continues to make significant contributions towards preventive therapies against deadly diseases.

With a view to seize opportunities, the efforts on innovative international marketing have been intensified. The company has been adopting a strategy of increasing its international brand image and is rapidly expanding to reach out to more and more countries. It has also obtained brand registration for more than 60 different brands in different countries and is actively exploring opportunities for launching as well as licensing out some of its patented products for manufacture/marketing in developed countries in Europe, North America and Latin America.

Positive marketing efforts in Thailand, Serbia, Sri Lanka and Russia have fuelled organic growth in terms of exports and the company is poised to make inroads in international markets by increasing its market share in operating markets and establishing its ground work in new potential markets.


The company commenced exports in new markets and marked its presence in countries like Mongolia, Philippines, Republic of Sparska and Madagascar. Agreements have been signed with several parties in newer markets and product registration documents have been submitted.


The company is also rigorously engaged in registration activities in new markets like Brazil, Mexico, South Africa, Bosnia, Mauritius, Costa Rica, Malaysia, Myanmar etc. The company has focused promotional activities for Nimulid range in Thailand and has launched Glizid M in Thailand and Nimulid MD in Kazakhstan. The company has also successfully completed registration of Panimun Bioral and Nimulid Suspension in Russia and Nimulid MD and Nimulid Tabs in Republic of Sparska.


Further, in order to expand its export turnover of pharmaceutical formulations, the Company is focusing on Nephrology range, Willgo, Xeed and other patented products across all the markets and is shifting from Distribution driven model to “Brand Promotion orientation” in key markets. The company has also enhanced efforts for filing product range in all key and supportive markets with maximal emphasis on Brazil, South Africa and turkey.

 

Focus on developed markets of Europe and US - the Company is in the process of launching its key patented products in the developed markets of Europe and US. The Company has been permitted by German regulatory authority BfArM to initiate Phase –III clinical trials for its two leading products Willgo and Sitcom. In case of Willgo, the clinical trials will be conducted entirely in India whereas in case of Sitcom the clinical trials will be conducted partly in India and partly in Europe. The company plans to file the registration dossiers for other products Panimun Bioral, Pangraf and Mycept during the current year and expects the commercial launch in FY’09.

 

Subject consistent strategic direction is poised to project a recognizable organization across the world in the near future.

 

 

PRESS RELEASE:

 

Panacea Biotec bags Award (USD 34. 2 million) for Pentavalent Vaccine, EasyFive* from UNICEF

 

Close on heels of receiving WHO pre-qualification in July’08, vaccine major Panacea Biotec has received an Award Notification for supply of its Pentavalent vaccine- EasyFive, for years 2008 & 2009. The total value of the award is USD 34.2 million (around Rs. 1430 millions). EasyFive is world’s first fully liquid pentavalent vaccine introduced in India, which immunizes children against five dreadful diseases (DTwP+ Hep B+ Hib) of early childhood.

 

EasyFive is also India’s first fully liquid pentavalent vaccine pre-qualified by WHO in July this year. With this achievement, Panacea Biotec becomes the first company in India to get this award from UNICEF for its fully liquid pentavalent vaccine. Pentavalent vaccines are used by UN agencies (UNICEF, PAHO etc.) to vaccinate & save precious lives of millions of children in the developing world. The Indian Government also has plans to include pentavalent vaccines in its Expanded Program of Immunization.

 

EasyFive offers a befitting solution to overcome complexity of childhood vaccination program. With the introduction of EasyFive, the vaccination rates are likely to be increased and will make parents more willing to let children get all the shots they need in one visit, rather than scheduling multiple appointments, thus avoiding late vaccinations.

 

“There is an need to foster innovation for the developing countries as the world is inching closer to the goal of eradicating dreadful diseases, especially for the early childhood, by providing effective vaccines. Immunization can prevent a million deaths. We at Panacea Biotec are partners with agencies worldwide to accelerate and spearhead a wide spectrum of technological innovations to develop vaccines that meet the unique needs of low-resource countries. We take this opportunity to thank entire team in Panacea Biotec, investors, shareholders, customers, suppliers & partners who have supported us to move from strength to size in becoming a truly global innovative company from India.” said Mr. Rajesh Jain, JMD- Panacea Biotec, highlighting the achievement.

 

Developing countries would need a combination vaccine to the tune of around 300 million doses annually. The combined demand of all combination pediatric vaccines worldwide was valued at USD 600 million in 2005 and is estimated to grow up to USD 1.6 billion by 2012. Pentavalent vaccine market is estimated to cross a mark of USD1 billion out of which UN agencies are likely to procure this vaccine worth more than USD 350 million (around Rs. 15000 millions) by 2009 itself. The WHO prequalification for EasyFive and the subsequent order for supply have made Panacea Biotec a global leader in this important market segment.

 

Panacea Biotec has been playing an important role in immunization through its novel and innovative, world’s first fully liquid vaccine with brands such as, ‘EasyFour’ & ‘EasyFive’, for over 3 years. It has partnered with WHO & UNICEF with a mission of supporting the cause of maximizing coverage of vaccines under the Expanded Program on Immunization (EPI) for more than a decade.  Panacea Biotec in the past too has been granted pre-qualification by WHO for its other two combination vaccines, EasyFour (DTP + Hib) and Ecovac (DTP + Hep B) also. The company is already a pre-qualified supplier of OPV and Hepatitis-B vaccines to UN agencies.

 

About Panacea Biotec

Panacea Biotec is one of India’s leading research-based health management companies with established research, manufacturing and marketing capabilities. Panacea Biotec is the 2nd largest vaccine producer in India. Panacea Biotec has been ranked as the 3rd largest biotechnology company (ABLE Survey 2008) and is also amongst the top 50 pharmaceutical companies in India. The product portfolio of the Company includes highly innovative vaccines, biopharmaceuticals and prescription products in important therapeutic areas such as pain management, diabetes management, renal-disease management, anti-osteoporosis, anti-tubercular, gastro-intestinal care products. The company has collaborations and tie-ups with leading national and international research organizations and corporations. The company’s state of the art manufacturing facilities for vaccines and pharmaceutical formulations comply with the US-FDA, UK-MHRA, SA-MCC and WHO-cGMP standards. The company has five research and development centers. It has around 2800 employees including over 280 highly

skilled scientists. The company also has 24 product patents, valid in more than 60 countries worldwide.

 

* Easyfive (Pentavalent) vaccine is available in different markets with antigens used from different sources i.e. Easyfive in India uses Hib from Novartis Vaccines and is meant for use in Indian market only whereas Easyfive PQ by WHO uses Hib developed by Panacea Biotec.

 

For further details please contact:

Mr. Pradeep Kumar Jain

GM - Corporate Communications & Govt. Affairs

Mobile: 09313482886

Land Line: 011-41678000; Fax: 011-41679096

Email: pradeepjain@panaceabiotec.com

Website: www.panaceabiotec.com

 

Disclaimer

Except for the historical information contained herein, statements in this Release which contain words or phrases such as ‘will’, ‘would’, ‘indicating’, ‘expected to’ etc., and similar expressions or variations of such expressions may constitute ‘forward-looking statements’. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future business plans, our growth and expansion in business, the impact of any acquisitions, our financial capabilities, technological implementation and changes, the actual growth in demand for our products and services, cash flow projections, our exposure to market risks as well as other general risks applicable to the business or industry. Panacea Biotec undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

 

 

Panacea Biotec reports unaudited financial results for the Quarter Ended June 30, 2008

 

New Delhi, July 28, 2008: Panacea Biotec today announced its unaudited financial results for the quarter ended June 30, 2008. The Company’s Board met here on Monday, 28 July 2008 to consider and approve its unaudited financial results for the quarter ended June 30, 2008. The results were also reviewed by the Company’s Audit committee in their meeting on that day.

 

The key financial highlights are as follows:

 

Particulars

Quarter End

 

30.06.2008

30.06.2007

 

(Rs. In millions)

Net Turnover

2244.800

2334.300

EBITDA

817.600

703.400

Profit Before Tax (PBT)

467.000

690.100

Profit After Tax (PAT)

340.500

472.500

EPS (Rs./share) - Basic

5.100

7.200

EPS (Rs./share) - Diluted

4.800

6.600

 

 

The Company registered net turnover of Rs.2244.8 million during the QE June 30, 2008 as compared to Rs.2 334.3 million for the corresponding period of previous financial year. The Formulations segment registered an impressive growth of 31.4% in its net turnover at Rs.653.5 million during the QE June 30, 2008 as compared to Rs.497.5 million during the corresponding quarter of previous financial year. The private vaccine segment turnover also grew by 65% at Rs.91.7 million during the QE June 30, 2008 as compared to Rs.55.7 million during the corresponding quarter of previous financial year. The overall Vaccine segment’s turnover declined on account of lower volumes. The EBITDA (excluding notional forex loss) during the QE June 30, 2008 improved by 16.2% to Rs.817.6 million as compared to Rs.703.4 million during the corresponding quarter of previous financial year. The PBT and PAT for the QE June 30, 2008 was Rs.467.0 million and Rs.340.5 million respectively as compared to Rs.690.1 million and Rs.472.5 million resp. during the corresponding quarter of previous financial year. The decline in PBT and PAT is mainly due to recent appreciation of US Dollar against Indian rupee which resulted in the provisioning of foreign exchange fluctuation expenses of Rs.240.3 million during the QE June 30, 2008 against the forex gain of Rs.122.8 million towards the outstanding forex liabilities for FCCB and foreign currency term loans.

 

Mr. Rajesh Jain, Joint Managing Director, said, “Panacea Biotec has consolidated its position to enter into the next growth phase. The new financial year has commenced with WHO pre-qualification of our Pentavalent Easyfive vaccine, which is an important milestone for the Company. The performance during the QE June 30, 2008 was affected by the provisioning of the notional forex expenses to comply with the accounting standards. The company’s continued efforts to expand in international markets resulted in 169.4% growth in the export sales of formulations during the QE 30.06.08 at Rs.175.4 million as compared to Rs.65.1 million during the corresponding period of previous financial year. We will continue to achieve new milestones to sustain and grow the revenues and profitability of the company”.

 

Other Highlights for the QE June 30, 2008

 

WHO Prequalification of Easyfive vaccine

Panacea Biotec has received WHO prequalification for its fully liquid innovative combination Pentavalent vaccine, EasyFive against five deadly infectious diseases (DTwP+ Hep B+ Hib) of early childhood. This feat comes close on heels of Panacea Biotec’s pre-qualification by WHO for two other combination vaccines, EasyFour (DTP + Hib) and Ecovac (DTP + Hep B) in January this year. Developing countries would need a combination vaccine to the tune of around 300 million doses annually. The combined demand of all combination pediatric vaccines worldwide was valued at USD 600 million in 2005 and is estimated to grow up to USD 1.6 billion by 2012. Pentavalent vaccine market is estimated to cross a mark of USD1 Billion out of which UN agencies are likely to procure this vaccine worth more than Rupees 15000 millions (>USD 350 million) by 2009 itself. The WHO prequalification for Easy Five makes Panacea Biotec a strong contender in this important market segment.

 

Launch of Value India, domestic SBU in formulations segment

As part of its strategy to expand in the domestic pharmaceutical industry the Company launched a new SBU ‘Value India’ in June 2008 which will focus on providing value added products to the people at affordable prices. The SBU is being launched in a phased manner, starting from Maharashtra State. It would focus on General Practitioners not only in major towns but also in interiors. It is planned to launch more than 15 products in this financial year.

 

US Patent for Thank GodTM

During the quarter the Company has been granted a patent from US Patent & Trademark Office for their product Thank GodTM (Euphorbia Prostrata) for effective management of hemorrhoids & piles (Patent No. 7,371,412 B2). With this, the company is looking forward to launch this product in high potential markets of US and EU. As per current industry trends, the total potential of anti-hemorrhoids & piles market in US & EU is between USD 500-600 million.( TMTrade Mark in India) Commercialization of Vaccine Formulations Plant at Baddi The Company has successfully commissioned its state of the art vaccine formulations plant at Baddi during the quarter. The plant has commenced commercial operations and the Company has launched new injectable polio vaccine “Polprotec” in pre-filled syringe device from this facility.

 

New Product Launches

The company launched several new specialty products for diabetic hypertension; fever & pain; chronic constipation and systemic infections through its Diacar, Grow & Pro SBUs. A specialized product for treatment of advanced lung cancer was also launched by the Oncotrust SBU.

 

About Panacea Biotec

Panacea Biotec is one of India’s leading research-based health management companies with established research, manufacturing and marketing capabilities. Panacea Biotec is the 2nd largest vaccine producer in India. Panacea Biotec has been ranked as the 3rd largest biotechnology company (ABLE Survey 2008) and is also amongst the top 50 pharmaceutical companies in India. The product portfolio of the Company includes highly innovative prescription products in important therapeutic areas such as pain management, diabetes management, renal-disease management, anti-osteoporosis, anti-tubercular, gastro-intestinal care products and vaccines. The company has collaborations and tie-ups with leading national and international research organizations and corporations. The company’s state of the art manufacturing facilities for vaccines and pharmaceutical formulations comply with the US-FDA, UK-MHRA, SA-MCC and WHO-cGMP standards. Panacea Biotec has five dedicated research and development centers. The company has around 2800 employees including over 280 scientists. The company also has 24 product patents, valid in more than 60 countries worldwide.

 

For further details please contact:

Mr. Pradeep Kumar Jain

GM - Corporate Communications & Govt. Affairs

Mobile: 09313482886

Land Line: 011-41678000; Fax: 011-41679096

Email: pradeepjain@panaceabiotec.com

Website: www.panaceabiotec.com

 

Disclaimer

Except for the historical information contained herein, statements in this Release which contain words or phrases such as ‘will’, ‘would’, ‘indicating’, ‘expected to’ etc., and similar expressions or variations of such expressions may constitute ‘forward-looking statements’. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future business plans, our growth and expansion in business, the impact of any acquisitions, our financial capabilities, technological implementation and changes, the actual growth in demand for our products and services, cash flow projections, our exposure to market risks as well as other general risks

applicable to the business or industry. Panacea Biotec undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

 

 

Panacea Biotec pre-qualified by WHO for supply of Pentavalent Vaccine, EasyFive* to UN agencies

Panacea Biotec has received WHO prequalification for its fully liquid innovative combination Pentavalent vaccine,

EasyFive* against five deadly infectious diseases (DTwP+ Hep B+ Hib) of early childhood. This feat comes close on heels of Panacea Biotec’s pre-qualification by WHO for two other combination vaccines, EasyFour (DTP + Hib) and Ecovac (DTP + Hep B) in January this year. In a notification, WHO has advised the UN procuring agencies regarding the acceptability of these vaccines world-wide. Panacea Biotec is already a pre-qualified supplier of OPV and Hepatitis- B vaccines to UN agencies.

 

This makes Panacea Biotec as the first Indian company & one of three companies in the world to have been prequalified by WHO for a pentavalent vaccine. Pentavalent vaccines are used by UN agencies (Unicef, Paho etc.) to vaccinate & save precious lives of millions of children in the developing World.

 

Panacea Biotec has been playing an important role in immunization through its novel and innovative, world’s first fully liquid vaccine with brands such as, ‘Easy Four’ & ‘Easy Five’, for over 3 years. It has partnered with WHO & UNICEF with a mission of supporting the cause of maximizing coverage of vaccines under the Expanded Program on Immunization (EPI) for more than a decade.

 

Developing countries would need a combination vaccine to the tune of around 300 Mio doses annually. The combined demand of all combination pediatric vaccines worldwide was valued at USD 600 million in 2005 and is estimated to grow up to USD 1.6 billion by 2012. Pentavalent vaccine market is estimated to cross a mark of $1 Billion out of which UN agencies are likely to procure this vaccine worth more than Rupees 15000 millions (>$ 350Mio), by 2009 itself. The WHO prequalification for Easy Five makes Panacea Biotec a strong contender in this important market segment.

 

“India is responding to globalization faster than people think. Encouraging innovation from India to develop vaccines for the developing countries is good for the world and will help to reduce the overall costs of healthcare,

a cause close to our heart”, said Mr. Rajesh Jain speaking on the occasion.

 

Panacea Biotec inaugurated its ultra modern, Greenfield construction, vaccine production plant at Baddi, H.P., with over Rs.1000 millions (approx. USD 25 million) investment in Sept’07, having capacity of more than 1 billion doses per annum, to cater to domestic and global markets. With this latest state-of-art facility, the total capacity to produce vaccines by Panacea Biotec would be doubled to two billion doses per annum. The commercial production has already commenced in April this year.

 

About Panacea Biotec

Panacea Biotec is one of India’s leading research-based health management companies with established research, manufacturing and marketing capabilities. Panacea Biotec is the 2nd largest vaccine producer in India. Panacea Biotec has been ranked as the 3rd largest biotechnology company (ABLE Survey 2007) and is also amongst the top 50 pharmaceutical companies in India. The product portfolio of the Company includes highly innovative vaccines, biopharmaceuticals and prescription products in important therapeutic areas such as pain management, diabetes management, renal-disease management, anti-osteoporosis, anti-tubercular, gastro-intestinal care products. The company has collaborations and tie-ups with leading national and international research organizations and corporations. The company’s state of the art manufacturing facilities for vaccines and pharmaceutical formulations comply with the US-FDA, UK-MHRA, SA-MCC and WHO-cGMP standards. The company has five research and development centers. It has around 2800 employees including over 280 highly skilled scientists. The company also has 24 product patents, valid in more than 60 countries worldwide.

 

* Easyfive (Pentavalent) vaccine is available in different markets with antigens used from different sources i.e. Easyfive in India uses Hib from Novartis Vaccines and is meant for use in Indian market only whereas Easyfive

PQ by WHO uses Hib developed by Panacea Biotec.

 

For further details please contact:

Mr. Pradeep Kumar Jain

GM - Corporate Communications & Govt. Affairs

Mobile: 09313482886

Land Line: 011-41678000; Fax: 011-41679096

Email: pradeepjain@panaceabiotec.com

Website: www.panaceabiotec.com

 

Disclaimer

Except for the historical information contained herein, statements in this Release which contain words or phrases such as ‘will’, ‘would’, ‘indicating’, ‘expected to’ etc., and similar expressions or variations of such expressions may constitute ‘forward-looking statements’. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future business plans, our growth and expansion in business, the impact of any acquisitions, our financial capabilities, technological implementation and changes, the actual growth in demand for our products and services, cash flow projections, our exposure to market risks as well as other general risks applicable to the business or industry. Panacea Biotec undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

 

 

WHO pre-qualifies Panacea Biotec for supply of EasyFour and Ecovac Vaccines

Panacea Biotec has been pre-qualified by WHO for supplying their innovative combination vaccines for pediatric immunization- EasyFour (DTP + Hib) and Ecovac (DTP + Hep B). In a notification, WHO has advised the UN procuring agencies regarding the acceptability of these vaccines worldwide. Panacea Biotec is already a prequalified supplier of OPV and Hepatitis-B vaccines to UN agencies.

 

Panacea Biotec has been playing an imperative role in immunization through its novel and innovative, world’s first fully liquid vaccine with brands such as, ‘Easy Four’ & ‘Easy Five’, for over 3 years. It has partnered with WHO & UNICEF with a mission of supporting the cause of maximizing coverage of vaccines under the Expanded Program on Immunization (EPI) for more than a decade.

 

The combined demand of all combination pediatric vaccines worldwide was valued at USD 600 million in 2005 and is estimated to grow up to USD 1.6 billion by 2012.

 

Speaking on the occasion, Mr. Rajesh Jain, JMD, Panacea Biotec says, “Panacea Biotec has built an innovative portfolio of combination vaccines which has enabled it achieve a leadership position in just about two years of its launch in India. With this pre-qualification by WHO, Panacea Biotec would participate in a large global market of combination vaccines for pediatric immunization.”

 

Panacea Biotec inaugurated its ultra modern, Greenfield construction, vaccine production plant at Baddi, H.P., with over Rs. 1000 millions (approx. USD 25 million) investment in Sept’07, having capacity of more than 1 billion doses per annum, to cater to domestic and global markets. With this latest state-of-art facility, the total capacity to

produce vaccines by Panacea Biotec would be doubled to two billion doses per annum. The commercial production is expected to commence in next financial year. Panacea Biotec Ltd.

 

About Panacea Biotec

Panacea Biotec is one of India's leading research-based health management companies with established research, manufacturing and marketing capabilities. Panacea Biotec is the 2nd largest vaccine producer in India. Panacea Biotec has been ranked as the 3rd largest biotechnology company (ABLE Survey 2007) and is also amongst the top 50 pharmaceutical companies in India. The product portfolio of the Company includes highly innovative prescription products in important therapeutic areas such as pain management, diabetes management, renal-disease management, anti-osteoporosis, antitubercular, gastro-intestinal care products and vaccines. The company has collaborations and tie-ups with leading national and international research organizations and corporations. The company's state of the art manufacturing facilities for vaccines and pharmaceutical formulations comply with the US-FDA, UK-MHRA, SA-MCC and WHO-cGMP standards. The company has four research and development centers. It has around 2800 employees including over 250 highly skilled scientists. The company also has 19 product patents, valid in more than 60 countries worldwide.

 

For further details please contact:

Mr. Pradeep Kumar Jain

GM - Corporate Communications & Govt. Affairs

Mobile: 09313482886

Land Line: 011-41678000; Fax: 011-41679096

Email: pradeepjain@panaceabiotec.com

Website: www.panaceabiotec.com

 

New Delhi, October 23, 2007:

Panacea Biotec today announced its unaudited financial results for the quarter and half year ended September 30, 2007. The company’s board met here on Tuesday 23 October 2007 to consider and approve its unaudited financial results for the quarter and half year ended September 30, 2007. The results were also reviewed by the company’s Audit committee in their meeting on Monday October 22, 2007.

 

The key financial highlights are as follows:  (Rs. In millions)

 

FINANCIAL

HIGHLIGHTS

Quarter Ended

YoY

Half Year Ended

YoY

30.09.07

30.09.06

Change

30.09.07

30.09.06

Change

 

 

 

 

 

 

 

Net Turnover

1751.4

1742.7

0.5%

4085.7

4076.6

0.2%

 

 

 

 

 

 

 

EBITDA

497.4

579.2

-14.1%

1,200.6

1427.5

-15.9%

 

 

 

 

 

 

 

Profit Before Tax (PBT)

462.3

634.8

-27.2%

1152.4

1419.8

-18.8%

 

 

 

 

 

 

 

Profit After Tax (PAT)

320.8

465.3

-31.1%

793.3

962.9

-17.6%

 

 

 

 

 

 

 

EPS – Basic

4.88

8.02

-39.2%

12.07

16.53

-27.0%

 

 

 

 

 

 

 

EPS – Diluted

4.51

6.78

-33.5%

11.14

13.66

-18.4%

 

 

 

 

 

 

 

Margin - EBITDA

28.4%

33.2%

 

29.4%

35.0%

 

- PBT

26.4%

36.4%

 

28.2%

34.8%

 

- PAT

18.3%

26.7%

 

19.4%

23.6%

 

 

The Company has registered net turnover of Rs.1751.4 millions during the QE September 30, 2007 as compared to Rs.1742.7 millions for the corresponding quarter of previous financial year. The net turnover for the half year ended September 30, 2007 was Rs.4085.7 millions against Rs.4076.6 millions during the corresponding period of previous financial year.

 

During the quarter, the Company registered net profit of Rs. 320.8 millions against Rs. 465.3 millions during corresponding quarter of previous financial year. The net profit during previous corresponding quarter included exchange gain of around Rs. 100 millions on account of conversion of convertible bonds into equity and interest income of Rs. 50 millions on unused funds from convertible bonds. Further, the operating costs during the current period have also gone up by around Rs. 82 millions.

 

Mr. Rajesh Jain, Joint Managing Director, said,” The Company has successfully faced the challenges posed by the continuously appreciating domestic currency by increasing volumes and price to the extent possible. Though the company’s turnover continues to grow in volume and foreign currency terms however in rupee terms the growth is not duly reflected. The company’s domestic turnover grew by 17% to Rs.1531.5 millions, the domestic vaccine sales grew by 21% to Rs.1125.8 millions and the domestic formulations sales grew by 8% to Rs.405.7 millions during the QE September 30, 2007. The export turnover witnessed 26% growth in the formulations segment at Rs.90.9 millions however the vaccines export declined by 65% to Rs.125.5 millions on account of shift in demand towards domestic program.”

 

The segmental financial highlights are as under:

 

SEGMENTALHIGHLIGHTS

 

 

Quarter Ended

YoY

Half Year Ended

YoY

30.09.07

30.09.06

Growth

30.09.07

30.09.06

Growth

VACCINES SEGMENT

 

 

 

 

 

 

Turnover

1251.3

1293.0

-3.2%

3088.1

3232.9

-4.5%

Profits

578.0

622.7

-7.2%

1371.4

1541.8

-11.1%

Margin

46.2%

48.2%

 

44.4%

47.7%

 

 

SEGMENTAL HIGHLIGHTS

Quarter Ended

YoY

Half Year Ended

YoY

FORMULATIONS SEGMENT

30.09.07

30.09.06

Growth

30.09.07

30.09.06

Growth

Turnover

496.6

448.8

10.7%

994.1

839.7

18.4%

Profits

63.0

100.2

-37.2%

144.1

163.6

-11.9%

Margin

12.7%

22.3%

 

14.5%

19.5%

 

 

During the quarter, in the vaccine segment, institutional business witnessed 8% growth in volumes and 12% in foreign exchange value terms however the rupee value declined around by 2%. The vaccine segment margin remained around 46%. In the Pharma (Formulations) segment, exports grew by 26% and domestic business grew by 8%. The segmental margins declined to 13% on account of new initiatives taken by the company which included launch of new domestic SBU OncoTrust foraying into Rs.8000 millions oncology market in the country.

 

Key highlights during the Quarter Ended September 30, 2007.  

 

Approvals from WHO

 

During the current quarter the WHO team visited company’s vaccine facilities at Delhi and Lalru as part of the pre-qualification process for the combination vaccines. The WHO pre-qualification for the combination vaccines Ecovac-4, Easyfour and Easyfive is expected to be received during the current quarter. The Company expects to begin supply of combination vaccines to UNICEF/WHO to meet their requirements for international markets with a USD 300 millions potential market.

 

New Product Launches

Panacea Biotec has launched several new brands during QE 30.09.07, including:

 

SBU

Brand

Launched Month

Product’s use in general terms

Procare

KONDRO ACUTE TABS 10'S

Sep-07

For Osteoarthritis

KONDRO-CERIN CAPS 10'S

Aug-07

 

KINGCAL 15 TAB

Jul-07

OD-PEP CAPSULES 10X10

Jul-07

For GERD & Dyspepsia

Growcare

FREEWAY TABLETS 10'S

Sep-07

For COPD and Anti Asthmatic

THANKGOD - PI CREAM 30G

Aug-07

For Piles Management

ZOMONT AL KID Tabs 10's

Aug-07

For Alergic Rhinitis

ZOMONT-THEO 400mg 10'S

Jul-07

Anti Asthmatic

OncoTrust

DOCETRUST - 80 - 2ml Vial

Aug-07

 

 

 

 

 

 

 

 

 

Chemotherapeutic agent used in Cancer Management

 

 

 

 

 

 

 

 

DOCETRUST-120 - 3ml Vial

Aug-07

DOCETRUST-20 - 0.5ml Vial

Aug-07

GEMTRUST - 1000mg Vial

Sep-07

GEMTRUST - 200mg Vial

Sep-07

PACLITRUST-100 - 16.67ml Vial

Aug-07

PACLITRUST-260 - 43.34ml Vial

Aug-07

PACLITRUST-30 - 5ml Vial

Aug-07

TEMOTRUST - 100mg Caps

Sep-07

TEMOTRUST - 20mg Caps

Sep-07

TEMOTRUST - 250mg Caps

Sep-07

ZOLETRUST 4mg Vial

Sep-07

Supportive Therapy used for Cancer patients

 

New Facilities

The company‘s new Vaccine Formulation Facility at Baddi is successfully completed and was inaugurated on September 25, 2007. The new facility has a capacity to manufacture one billion doses of vaccines per annum. The Tetanus and Bacterial vaccines bulk production facilities at Lalru, Punjab have also been successfully completed. The construction work at Mumbai R and D center- GRAND is also progressing satisfactorily

 

New Corporate Identity

On our Annual Day, September 25, 2007, we have evolved a new logo for our corporate identity. The logo has a new tagline- Innovation in support of life. This has been done to portray an image of a truly world class, innovative global organization. The exuberant logo in vibrant colors truly represents our goal to transform ourselves into a company which is young, enthusiastic, ambitious, committed and aspiring to be global leaders in healthcare. The new Panacea Biotec logo is a representation of the future endeavors and aspirations of the Company. Our new identity communicates the vision of being an exemplary ‘pioneer’ and an ‘eternal guide’ to all within the organization and outside. It reflects the company’s quest for collective ‘innovation’ where leadership, employee participation, stakeholder expectations coupled with integrity come together to build a radiant future for all.

 

About Panacea Biotec

Panacea Biotec is one of India's leading research-based health management companies with established research, manufacturing and marketing capabilities. Panacea Biotec is the 2nd largest vaccine producer in India. Panacea Biotec has been ranked as the 3rd largest biotechnology Company (ABLE Survey 2007) and is also amongst the top 50 pharmaceutical companies in India. The product portfolio of the Company includes highly innovative prescription products in important therapeutic areas such as pain management, diabetes management, renal-disease management, anti-osteoporosis, anti-tubercular, gastro-intestinal care products and vaccines. The Company has collaborations and tie-ups with leading national and international research organizations and corporations. The Company's state of the art manufacturing facilities for vaccines and pharmaceutical formulations comply with the US-FDA, UK-MHRA, SA-MCC and WHO-cGMP standards. The Company has four research and development centers. The Company has around 2800 employees including over 250 scientists. The Company also has 19 product patents, valid in more than 60 countries worldwide.

 

 

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.46.34

UK Pound

1

Rs.82.96

Euro

1

Rs.65.82

 

 

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

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions