MIRA INFORM REPORT
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Report Date : |
18.04.2011 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Derabassi, Teh Rajpura, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
02.02.1984 |
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Com. Reg. No.: |
16-22350 |
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CIN No.: [Company
Identification No.] |
L33117PB1984PLC022350 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEP07035A |
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PAN No.: [Permanent
Account No.] |
AAACP5335J |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer and Marketer of Pharmaceutical Formulations viz. Tablets, Syrups/ Liquids, Capsules, Gels and Vaccines. |
RATING & COMMENTS
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MIRA’s Rating : |
A (60) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 27860000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having
fine track. There appears to be some losses incurred by the company in the year
2009. However it is on account of drastic reduction and exchange rate of The company can be considered normal for business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DENIED BY
|
Name : |
Mr. Chandresh Ohari |
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Designation : |
Finance Department |
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Contact No.: |
91-11-41679000 |
LOCATIONS
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Registered Office : |
Derabassi, The Rajpura, |
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E-Mail : |
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Website : |
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Corporate Office : |
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Head/ Corporate Office : |
B 1 Extension / A-27, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi – 110 044, India |
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Tel. No.: |
91–11–26945270 / 41679000 Extn. 2081 (D) 41578024 / 26974500 / 41678000 |
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Fax No.: |
91–11–26940199 / 26940621 / 41679075 / 41679070 / 41679081 |
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E-Mail : |
panbio.panbio@rme.sprintrpg.ems.vsnl.net.in |
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Website : |
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Plants : |
·
Pharmaceutical Formulations facility at
B-1/E-12, Mohan Co-operative Indl. Estate,
·
Vaccines Formulations facility at A-241/242,
Okhla Indl. Area, Phase I,
·
Bulk Vaccine facilities at Village Samalheri,
·
Pharmaceutical Formulations facility at
Malpur, Baddi,Tehsil Nalagarh, Dist. Solan, Himachal Pradesh- 173205, ·
Vaccines Formulations facility at Malpur, Baddi,
Tehsil Nalagarh, Dist. Solan, Himachal Pradesh-173205, |
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City Office : |
102, |
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Tel. No.: |
91–11–26945270/26945274 |
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Fax No.: |
91–11–26948548/26940199/26940621 |
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Administrative/ Secretarial/ Corporate Office : |
B – 1 Extension / G – 3, Mohan Co-Operation Industrial
Estate, |
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Tel. No.: |
91-11-41679000 Extn. 2081, (D) 41578024 |
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Fax No.: |
91-11-41679070/ 41679075 |
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E-mail: |
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Branch/ Sales and Marketing Office : |
701, |
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R & D Centers : |
·
·
B-1/E-12, ·
A-224, Okhla Industrial Area, Phase – I ·
Plot No. E-4, Phase II, Industrial Area Mohali
– 160055, · Plot No. 72/3, Gen Block, T.T.C. Industrial Area, Mahape, Navi Mumbai – 400710, India |
DIRECTORS
AS ON 31.03.2010
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Name : |
Mr. Soshil Kumar Jain |
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Designation : |
Chairman |
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Qualification : |
Pharmacist |
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Name : |
Mr. Ravinder Jain |
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Designation : |
Managing Director |
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Qualification : |
Matriculate |
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Name : |
Mr. Rajesh Jain |
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Designation : |
Joint Managing Director |
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Qualification : |
B.Sc., MBA, PGDBM,
Advanced Management Diploma in Market Research |
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Name : |
Mr. Sandeep Jain |
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Designation : |
Joint Managing Director |
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Qualification : |
B. Com |
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Name : |
Mr. Sumit Jain |
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Designation : |
Director-Operations and Projects |
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Qualification : |
Post Graduate Diploma in Business Management |
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Name : |
Mr. R.L. Narasimhan |
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Designation : |
Independent Director |
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Name : |
Mr. N.N. Khamitkar |
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Designation : |
Independent Director |
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Name : |
Mr. Sunil Kapoor |
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Designation : |
Independent Director |
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Name : |
Mr. Gurmeet Singh |
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Designation : |
Independent Director |
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Name : |
Dr. A.N. Saksena |
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Designation : |
Independent Director |
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Name : |
Mr. K.M. Lal |
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Designation : |
Independent Director |
KEY EXECUTIVES
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Name : |
Mr. Vinod Goel |
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Designation : |
G. M Legal and Company Secretary |
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Name : |
Mr. Chandresh Ohari |
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Designation : |
Finance Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter
and Promoter Group |
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43,548,100 |
71.10 |
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2,313,454 |
3.78 |
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2,313,454 |
3.78 |
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|
45,861,554 |
74.88 |
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Total shareholding of Promoter
and Promoter Group (A) |
45,861,554 |
74.88 |
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(B) Public Shareholding |
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|
308,562 |
0.50 |
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35,584 |
0.06 |
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3,340,453 |
5.45 |
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3,684,599 |
6.02 |
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7,948,807 |
12.98 |
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3,582,026 |
5.85 |
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135,000 |
0.22 |
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38,760 |
0.06 |
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38,110 |
0.06 |
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650 |
- |
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11,704,593 |
19.11 |
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Total Public shareholding (B) |
15,389,192 |
25.12 |
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Total (A)+(B) |
61,250,746 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Marketer of Pharmaceutical Formulations
viz. Tablets, Syrups/ Liquids, Capsules, Gels and Vaccines. |
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Products : |
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PRODUCTION STATUS
AS ON 31.03.2010
Licensed Capacity
Per annum
Recombinant Bulk Vaccine – 18 millions doses
|
Particulars |
Unit |
Installed
Capacity per annum |
Actual
Production |
|
Tables |
Nos./Million |
1684.00 |
585390618** |
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Capsules |
Nos. / Million |
370.00 |
85037342 |
|
Syrups / Liquids |
Bottles /
Million |
15.80 |
351255280 |
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Gels |
Tubes/ Million |
21.20 |
41264545 |
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Vaccines (Finished Doses) |
Doses / Million |
861.50 |
45585705 |
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Pre-filled Syringes |
Doses / Million |
17.00 |
1201221 |
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Recombinant Bulk Vaccines 1 |
Doses / Million |
12.50 |
-- |
|
Tetanus Bulk Vaccines 2 |
Doses / Millions |
75.00 |
-- |
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Bacterial Bulk Vaccines 2 |
Doses / Millions |
68.75 |
-- |
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Bulk Vaccine-Plant 3 |
Doses / Millions |
18.00 |
-- |
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Injection |
Nos. |
-- |
512320 |
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Other Products |
Gms. |
-- |
41163240 |
NOTE
*As Certified by the management
1 This facility has been leased to
Associate Company, PanEra Biotec Private Limited and is capable of
manufacturing various bulk vaccines including Hep B, Hib TT and Anthrax.
2 These facilities have been
leased to Associate Company, PanEra Biotec Private Limited Bacterial Bulk Vaccines Plant is capable of
manufacturing various bulk vaccine including Diphtheria, Whole Cell Pertussis
(wP), Acellular Pertussis (aP) and its capacity will come down by 5 Million
doses to 63.75 million doses in case of production of Acellular Pertussis (aP).
3 Bulk Vaccine Plant is capable of
manufacturing various bulk vaccine including Hib TT, Hep B Vaccine (new clone)
and aP Bulk etc.
*Actual Production includes
production at Loan Licensee locations meant for sale by the Company
** Actual Production includes
185,577,426 (Previous Year 155,993,730) Tablets manufactured for others under
Loan License basis.
GENERAL INFORMATION
|
Suppliers : |
· Ambika Parental Containers ·
Sri · Advanced Microdevices Private limited · Wincoat Colours and Coating private limited · Paras enterprises ·
· HRJ Surgicals · Siva chemicals · Sukkan Industries ·
Protech Engineering Industries Private Limited |
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No. of Employees : |
2,800 employees (393 engaged in Research and Development, 910 in Production and 1,200 in Sales and Marketing) |
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Bankers : |
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Facilities : |
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 movable fixed assets, both present and future and mortgage of
immovable properties of the company being land admeasuring 96 bighas, 19
biswas and 93 bighas 12 biswas and 10 biswasi situated at village Samalheri,
Tehsil Dera Bassi, District S.A.S. Nagar (Mohali), Punjab and land
admeasuring 26 bighas, 3 biswas situated at Village Manpura, Tehsil Nalagarh,
District Solan and land admeasuring 91 bighas, 1 biswas situated at Village
Malpura, Tehsil Nalagarh, District Solan in the state of Himachal Pradesh.
Foreign currency term loan from State Bank of India is also collaterally
secured by personal guarantees of the promoter- directors of the Company,
viz. Mr. Soshil Kumar Jain, Mr. Ravinder Jain, Dr. Rajesh Jain and Mr.
Sandeep Jain. 2.
The loan from Government of India is secured byway of hypothecation of the
company’s all equipments, apparatus, machineries, machineries spares, tools
and other accessories, goods and/or other movable property present and future
on a first charges on pari-passu basis. The creation of charge for
hypothecation is under progress. (Refer note no. 23 of schedule XX C) 3. Working capital loans from Schedule Banks and Buyers’
Credit are secured by way of first pari passu charge by hypothecation of all
current assets and also by way of second pari-passu charge on all the movable
fixed assets (including machinery and spares) of the Company and existing
immovable properties of the Company being land admeasuring 96bighas,19 biswas
and 93 bighas 12 biswas and 10 biswasi situated at village Samalheri, Tehsil
Dera Bassi, District S.A.S. Nagar (Mohali),Punjab and land admeasuring 26
bighas,3 biswas situated at Village Manpura, Tehsil Nalagarh, District Solan
and landed measuring 91 bighas,1 biswas situated at Village Malpura, Tehsil
Nalagarh, District Solan in the state of Himachal Pradesh. These are also
collaterally secured by personal guarantees of the Promoter- directors of the
Company, viz Mr. Soshil Kumar Jain, Mr. Ravinder Jain, Dr. Rajesh Jain and
Mr. Sandeep Jain.
Notes: * It includes Rs.315.000 millions from partnership firm in which some directors and their relatives are partner. ** Unless previously converted, redeemed or repurchased and cancelled, the remaining FCCBs of US $ 36,800,000, which were issued on 13.02.2006, will be redeemed on Feb 14, 2011 at 142.80% of their outstanding principal amount. |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
S. R. Batiliboi and Associates Chartered Accountants |
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Address : |
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Statutory Auditors : |
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Name: |
S. R. Batiliboi and Associates Chartered Accountants |
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Address: |
Gurgaon, |
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Cost Auditors : |
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Name: |
J. P. Gupta and Associates Cost Accountants |
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Address: |
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Joint Ventures : |
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Subsidiaries : |
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Associates : |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
125000000 |
Equity Shares |
Rs.1/- Each |
Rs.125.000 millions |
|
110000000 |
Preference Shares |
Rs.10/- Each |
Rs.1100.000 millions |
|
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Total |
|
Rs.1225.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
66842746 |
Equity Shares |
Rs.1/- Each |
Rs.66.843
millions |
NOTE
(Out of the above shares, 1,814,240 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 18,142,400 Equity Shares
of Re.1 each on February 12, 2003.These shares have been sold in the open
market in the current year as fully paid. Consequently, amount of Rs.92,566 has
been transferred to Capital Reserve)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
66.843 |
66.786 |
66.786 |
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|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
6898.200 |
6084.707 |
6905.260 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
6965.043 |
6151.493 |
6972.046 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5081.382 |
4835.939 |
2070.352 |
|
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2] Unsecured Loans |
1973.004 |
2166.996 |
1912.076 |
|
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TOTAL BORROWING |
7054.386 |
7002.935 |
3982.428 |
|
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DEFERRED TAX LIABILITIES |
708.903 |
333.786 |
595.030 |
|
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Foreign Currency Monetary Item Translation |
16.773 |
|
|
|
|
|
|
|
|
|
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TOTAL |
14745.105 |
13488.214 |
11549.505 |
|
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APPLICATION OF FUNDS |
|
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|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
5321.042 |
5241.093 |
3182.066 |
|
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Capital work-in-progress |
1625.538 |
1697.610 |
2161.628 |
|
|
|
|
|
|
|
|
INVESTMENT |
2258.323 |
2165.698 |
2049.309 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
Foreign Currency Monetary Item Translations |
0.000 |
95.961 |
0.000 |
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4555.094
|
4478.012
|
2116.424
|
|
|
Sundry Debtors |
1094.077
|
1238.802
|
1482.608
|
|
|
Cash & Bank Balances |
363.368
|
594.809
|
1411.803
|
|
|
Other Current Assets |
72.267
|
54.410
|
29.549
|
|
|
Loans & Advances |
1319.113
|
1303.765
|
404.506
|
|
Total
Current Assets |
7403.919
|
7669.798 |
5444.890 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
634.627
|
359.601 |
|
|
|
Other Current Liabilities |
747.580
|
1168.489
|
1118.458
|
|
|
Provisions |
483.480
|
1857.508
|
175.264
|
|
Total
Current Liabilities |
1865.687
|
3385.598 |
1293.722 |
|
|
Net Current Assets |
5538.232
|
4284.200
|
4151.168
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
1.970 |
3.652 |
5.334 |
|
|
|
|
|
|
|
|
TOTAL |
4745.105 |
13488.214 |
11549.505 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
8843.673 |
7734.172 |
8304.442 |
|
|
|
Other Income |
934.912 |
259.677 |
331.242 |
|
|
|
TOTAL (A) |
9778.585 |
7993.849 |
8635.684 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchased of traded goods |
180.101 |
155.871 |
172.969 |
|
|
|
Raw and packing material consumed |
5014.890 |
2951.977 |
3463.720 |
|
|
|
Operating and other expenses |
863.892 |
3350.886 |
694.674 |
|
|
|
Personnel Expenses |
990.177 |
916.096 |
924.897 |
|
|
|
Selling and Distribution Expenses |
396.702 |
434.545 |
460.606 |
|
|
|
Research and Development Expenses |
753.063 |
669.944 |
541.856 |
|
|
|
Miscellaneous Expenditure Written off during
the year |
1.682 |
1.682 |
1.682 |
|
|
|
(Increase) / Decrease in Finished Goods |
(514.763) |
(446.905) |
21.788 |
|
|
|
TOTAL (B) |
7685.744 |
8034.096 |
6282.192 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2092.841 |
(40.247) |
2353.492 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
423.448 |
347.420 |
150.139 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1669.393 |
(387.667) |
2203.353 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
488.594 |
536.074 |
298.662 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1180.799 |
(923.741) |
1904.691 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
380.609 |
(233.244) |
672.993 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
800.190 |
(690.497) |
1331.698 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2155.224 |
2845.721 |
|
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
NA |
|
|
|
|
Dividend on Equity Shares – Proposed |
16.711 |
0.000 |
|
|
|
|
Dividend Distribution Tax |
2.840 |
0.000 |
|
|
|
|
Transfer to General Reserve |
80.019 |
0.000 |
|
|
|
BALANCE CARRIED
TO THE B/S |
2855.844 |
2155.224 |
|
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
6465.394 |
5588.992 |
6414.112 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Packing Materials |
3137.159 |
4571.338 |
|
|
|
|
Capital Goods |
406.552 |
457.267 |
|
|
|
TOTAL IMPORTS |
3543.711 |
5028.605 |
2936.142 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
11.98 |
(10.35) |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 (1st
Quarter) |
30.09.2010 (2nd
Quarter) |
31.12.2010 (3rd
Quarter) |
|
Net Sales |
2584.100 |
2562.400 |
2928.100 |
|
Total Expenditure |
1983.500 |
2019.700 |
2105.100 |
|
PBIDT (Excl OI) |
600.600 |
542.700 |
823.000 |
|
Other Income |
12.600 |
41.400 |
45.900 |
|
Operating Profit |
613.200 |
584.100 |
868.900 |
|
Interest |
85.600 |
114.000 |
125.700 |
|
PBDT |
527.600 |
470.100 |
743.200 |
|
Depreciation |
173.700 |
184.600 |
182.700 |
|
Profit Before Tax |
353.900 |
285.500 |
560.500 |
|
Tax |
28.400 |
116.800 |
134.500 |
|
Profit After Tax |
325.500 |
168.700 |
426.000 |
|
Net Profit |
325.500 |
168.700 |
426.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
8.18 |
(8.64) |
15.42 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.35 |
(11.94) |
22.93 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.28 |
(7.15) |
22.08 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17 |
(0.15) |
0.27 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.28 |
1.69 |
0.76 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.97 |
2.26 |
4.21 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
India's research-based health management company with
established research, manufacturing and marketing capabilities are collectively
known as company which was incorporated on 2nd February 1984 under the name of
Panacea Drug (Private) Limited. A second largest vaccine producer in
The plant for vaccines production (Radicura Pharma) and
pharmaceutical formulations plant (Panacea Drug Private Limited) at
In the year 1997, the company obtained its first product patent in several countries. Company’s Research and Development made a tie up with European MNC in the year 2001 and in 2002; an in-licensing agreement was made with Biotechnology Consortium of India for development and commercialization of Anthrax Vaccine. Also in the identical year of 2002, the company had commissioned Recombinant Vaccine production plant.
During the year 2004, PBL made an in-licensing agreement
with National Institute of Immunology,
During the year 2006, ultra modern Pharmaceuticals
formulation facility at Baddi, Himachal Pradesh was goes live, which has WHO
cGMP complaint. Landmark collaborations were made with The Netherlands Vaccine
Institute (The Nederlands Vaccin Institute (NVI)) for manufacture and marketing
of finished Inactivated Polio Vaccine (IPV) and a number of IPV based
combination vaccines in
Subject forayed into Healthcare Delivery in the year 2008,
made a collaboration to set-up 220 bed multi super-specialty hospital in NCR
and also the company obtained a patent (Patent No. 7,371,412 B2) from US Patent
and Trademark Office for the product Thank GodTM (Euphorbia Prostrata) for
effective management of hemorrhoids and piles in the identical year of 2008.
MANAGEMENT DISCUSSION AND ANALYSIS
Industry Structure and Developments
Global Vaccine Industry
Vaccines are important preventive
medicines for primary health care and are a critical component of a nation's
health security. The Vaccines have emerged as one of the most lucrative segment
in the global pharmaceutical industry. The global market for vaccines is
expected to grow at a Compounded Annual Growth Rate (CAGR) of more than 13% in
the next five years and is expected to reach USD 36 bn by 2013, as per various
industry estimates. The vaccine industry will emerge as the fastest growing
prophylactic/therapeutic area. While
Presently, Pediatric vaccines
dominate the global vaccines market and growth in this segment is expected to
continue in future. At the same time, the share of adult and therapeutic
vaccines is likely to increase and will continue to fuel the future growth in
the global vaccines market. Successful development of vaccines against
infectious diseases like Pandemic Flu, Pneumonia, Dengue, HIV, rotavirus and
cervical cancer in addition to the Hexavalent pediatric combination vaccines
would add to the growth of the vaccine industry. Immunization is a cornerstone
of public health programs and serves as a platform for other interventions.
These programs have been sustained for decades, even through war and conflict.
In one of the greatest successes in public health history, smallpox was
eradicated by immunization campaigns in 1979, and polio eradication is now
within reach.
Each year approximately 25 million
infants do not receive the necessary immunizations, and at least 2.4 million
children die from vaccine-preventable diseases — approximately 14 % of deaths
in children under 5 years of age. 14 millions survive, but are left severely
impaired. The long-term effects of these childhood illnesses limit the ability
of those who survive to become educated, to work, or to care for themselves or
others. The WHO and The United Nations Children's Fund (UNICEF) have taken a
number of measures to boost the awareness and access to vaccines in their
efforts to meet the challenges in global immunization. One such program
launched in 2005 is the Global Immunization Vision and Strategy (GIVS). In
brief, GIVS aims to assist countries to immunize more people, from infants to
seniors, with a greater range of vaccines. GIVS is the first ever global ten
year framework to fight vaccine-preventable diseases through immunization and
covers the period 2006 to 2015.
INDIAN VACCINE MARKET
Presently, domestic companies
dominate the vaccines market covering around seven out of top 10 players. But
with
Along with the improvements in the
domestic market,
Polio Eradication in
The goal of Global Polio
Eradication Initiative (GPEI) is to ensure that no child will ever again know
the crippling effects of polio. There is no cure for polio, but the disease can
be prevented by immunization with polio vaccine.
Alarmed that polio remained
entrenched in the four countries that had never stopped transmission, and that
an increasing number of polio-free areas were becoming re-infected, in May 2008
the World Health Assembly (WHA) called for a new strategy to complete polio
eradication.
The new Global Polio Eradication
Initiative - `GPEI Strategic Plan 2010-2012’ builds on the special 2009
Programme of Work and incorporates the myriad lessons learnt since the GPEI
began. The multi-year planning process of the Global Polio Eradication
Initiative (GPEI) was subsequently replaced with a one-year 2009 Programme of
Work which examined the major barriers to interrupting Wild Polio Virus (WPV)
transmission in each of the remaining endemic areas (through an Independent
Evaluation); fast-tracked the development and clinical trials of four new
vaccines or vaccine approaches; and assessed new approaches to reach children
previously missed by vaccination efforts due to weak operations management,
insecurity or other factors. Though the number of Polio cases in India have
reduced significantly from 1,934 in 1998 to 741 in 2009 and 25 till June, 2010
(source: www.npspindia.org), 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
Global Pharmaceutical Market
As per IMS, the global market for pharmaceuticals
is expected to grow nearly USD 300 bn over the next five years, reaching USD
1.1 trillion in 2014. The 5-8% Compound Annual Growth Rate (CAGR) during this
period reflects the impact of leading products losing patent protection in
developed markets, as well as strong overall growth in the world’s emerging
countries. Global pharmaceutical sales growth of 4-6% is expected in 2010. In
2009, the market grew 7% to USD 837 bn, compared with a 4.8% growth rate in
2008.
Patient demand for pharmaceuticals
is expected to remain robust, despite the ongoing effects of the economic
downturn being felt in many parts of the world. In developed markets with
publicly funded healthcare plans, pressure by payers to curb drug spending
growth will only intensify, but that will be more than offset by the ongoing
rapid expansion of demand in the emerging markets. Net growth over the next
five years is expected to be strong - even as the industry faces the peak years
of patent expiries for innovative drugs introduced 10-15 years ago and
subsequent entry of lower-cost generic alternatives.
As the pharmaceutical industry’s
research and development programs adjust to the broad availability of low-cost
generic options in many chronic therapy areas, higher growth will occur in
those therapy areas where there is significant unmet clinical need, high-cost
burden of disease, and innovative science that can bring new treatment options
to patients. In the areas of oncology, diabetes, multiple sclerosis and HIV,
annual growth is expected to exceed 10% through 2014 as new drugs are brought
to market, patient access is expanded and funding is redirected from other
areas where lower-cost generics will be available.
Geographic balance of the
pharmaceutical market continues to shift towards emerging countries. Emerging
markets are expected to grow at a 14-17% pace through 2014, while major
developed markets will grow 3-6%. As a result, the aggregate growth through
2014 from emerging markets will be similar to the growth experienced in
developed markets - about USD 120-140 bn. This compares to aggregate growth
over the past five years of USD 69 bn in emerging markets and USD 126 bn in
developed markets. The
The pharma market world over will
experience significant shifts. Asia-Pacific region will emerge as the fastest
growing pharmaceutical market over the recent past. Here, the pharmaceutical
industry is expected to grow at a CAGR of around 12.6% during 2010-2012. It
can, in fact, become the global API production hub in next few years.
Pharmaceutical sales are growing
at a fast rate in
Indian Pharmaceutical Market
The pharmaceutical industry in
The Indian Pharmaceutical Market
(IPM) is the third largest in world in terms of volume and ranks 14th in terms
of value at over Rs.1.0 trillion and by 2015, it is slated to be amongst the
top 10 overtaking
One of the major factor
contributing the growth of Indian Pharma market is the increasing prevalence of
the chronic diseases. The prevalence of Diabetes will rise from 2.8% in 2005 to
3.7% in 2015; Coronary Heart Disease from 3.3 to 4.9%; and Obesity from 1.3 to
2.7%. The population with Hypertension is expected to grow by another 50 mio
cases over the next decade.
The growth of the Indian
pharmaceutical industry has been fuelled by exports. Exports of pharmaceuticals
have consistently outstripped imports.
Industry Structure
The Indian Pharmaceutical sector
is highly fragmented with more than 20,000 registered units, severe price
competition and government price control. The leading 250 pharmaceutical
companies control around 70% of the market with market leader holding nearly 7% of the market share.
The pharmaceutical industry in
Growth Drivers
Growing population:
Rising disposable income: Per capita disposable income will rise from 463 USD in 2005 to 765 USD
in 2015.
Growing middle class:
Increasing healthcare infrastructure: Driven largely through private investments, the number of
hospital beds and physicians is expected to double by 2015 (i.e. additional 2
million beds and 4 million physicians). Corporate hospital chains will play a
leading role in transforming the quality of secondary and tertiary care.
Health insurance penetration: Health Insurance penetration is expected to double by 2015
to cover 220 million people.
Medical advancements:
Patent infrastructure will scale up to 30 approvals annually and an average
approval timeframe of two years. Patented products will be concentrated in five
therapeutic areas: Neuropsychiatry, Oncology, Anti-infective, Gastro-intestinal
and Cardiovascular. These five therapies are expected to contribute
approximately 60 to 70% of the growth.
Large talented pool:
Cost-competitiveness:
Unmatched cost competitiveness with lower cost of infrastructure, skilled
manpower and vertical integration.
Value-added services:
Leading Indian companies are climbing the value chain in the field of
innovative research and developing into a Drug Discovery services outsourcing
destination.
BUSINESS SEGMENTS
Pharmaceutical Formulations
Domestic Sales and Marketing Network
Subject has successfully
established leading brands through a focused scientific marketing approach. To
cater to the individual nuances of specific therapeutic segments, Subject
operates through seven Strategic Business Units (SBUs). The domestic pharmaceutical
business is organized into three classes – Super-specialty i.e. Critical Care
(Nephrology and Transplantation) and OncoTrust, Specialty i.e., Diacar Alpha
and Diacar Delta and Multi-specialty i.e., Procare and Growcare. To cater to
the large and voluminous bottom of the Indian Pharmaceutical Market pyramid,
the Company has launched a new SBU, viz. Value India Healthcare in fiscal 2009.
The aim of each SBU is to attain
leadership position in its chosen markets and establish brand equity in respective
therapeutic segment by way of innovative products as well as innovative and
aggressive marketing approach. The SBUs promote a portfolio of brands with a
special focus on Orthopaedicians, Cardiologists, Diabetologists,
Endocrinologists, Nephrologists, Oncologists, Chest Physicians, Surgeons,
Dentists, Consulting Physicians, General Practitioners, Pediatricians and
Gastroenterologists.
Diacar Alpha
Diacar Alpha has dedicated
marketing and sales infrastructure for Diabetes and Cardiovascular Disease
Management. Diacar Alpha SBU is committed to provide new therapies and
innovations in drug delivery in overall Diabetes and Cardiovascular disease
management. Today
Oral Hypoglycemic agents: Metlong
and Metlong DS (Metformin), Gliben Total (Glibenclamide+Metformin+
Rosiglitazone) and Glizid Total (Gliclazide+Metformin+ Rosiglitazone).
Cardiovascular agents: Hitarget
(Telmisartan) range and Oglibo (Voglibose).
Co-prescriptive: In co-morbid
conditions like Diabetic peripheral neuropathy Diacar Alpha has Myelogen Forte
(Methylcobalamin combination).
Diacar Delta
Diacar Delta SBU is committed to
provide new therapies and innovations in drug delivery and overall Diabetes and
Cardiovescular disease management. Diacar Delta promotes the brands to target
specialists viz. Endocrinologists, Diabetologists, Cardiologists and Physicians
in a fiercely competitive scenario and has achieved significant leadership
position in oral antidiabetic segment. To tap the growing cardiology segment
the SBU now has sharpened its focus on Cardiology and plans to launch
innovative molecules in that segment. The brand portfolio of Diacar Delta
includes:
Oral Hypoglycemic agents: Glizid
MR (Gliclazide modified release), Betaglim (Glimepiride), Betaglim M
(Glimepiride +Metformin), Glim Total (Glimeperide, Metformin and Pioglitazone),
Pioryl (Pioglitazone + Glimepiride), Oglo (Pioglitazone).
Cardiovascular agents: Lower A
(Atorvastatin),
Fenofibrate), Kingbeta
(Metoprolol) Kingbeta AM (Metoprolol and Amlodipine).
Critical Care
Critical Care, a Super Specialty
SBU of the company, is focused on the highly specialized organ transplantation
and dialysis management segments. It offers a complete range of pretransplant
and post transplant therapies. The SBU has carved a niche in super – specialty
segment and created a scientific image and has achieved clear leadership in
these segments. This Super Specialty division has now progressed to branch
itself into two strategic arms of Transplantation and Nephrology SBUs. The
Nephrology SBU focuses on the Chronic Kidney Disease and dialysis therapy and
the Transplantation SBU continues to cater to multi organ transplant patients
primarily kidney, liver, heart transplants, etc.
The move to create two business
arms was made to tap on the vast potential of the nephrology and the dialysis
market along with continued services in the Post organ transplant segment. The
SBUs together aim to provide complete care to patients suffering from initial
stages of organ failure till the improvement of the quality of life post organ
transplant.
Transplantation
The transplantation SBU further
consolidated and strengthened its leadership status in organ transplantation in
the year 2009-10 with all major brands in the SBU either at No. 1 or No. 2
position in the respective market of immuno-suppressants. With the high
penetration of the SBU in the post organ transplantation segment, PanGraf
(Tacrolimus) continued to dominate the market and is the major brand for the
SBU with an aggressive growth. The launch of Mycept 750 for the first time
globally gave a boost to existing Mycept brand and family. Mycept was also
launched in the Rheumatology segment which will become growth lever for future.
The flagship brand Panimun Bioral
is also being rejuvenated by entering in Hematology segment.
Nephrology
The Nephrology SBU was launched in
April 2010. It covers a number of brands catering to nephrology patients in its
umbrella including Epotrust (Erythropoietin Alpha), Overcom (Iron Sucrose),
Kbait (Calcium Polystyrene Sulphonate), Fosbait (Lanthanum Carbonate), Mimcipar
(Cinacalcet Hydrochloride) and Alphadol (Alphacalcidol). Fosbait continues its
leadership stance in the Lanthanum Segment. Mimcipar, launched last year, has
been growing steadily in the Cinacalcet Market in
Onco Trust
OncoTrust, the oncology SBU of Subject
has completed 2 years in the market, gaining the familiarity and wisdom to
compete in the highly competitive oncology market of
Procare
Procare SBU of the Company
endeavours to consolidate and strengthen its image in the field of chronic
health care management in Orthopedic and Gastroenterology through specific
focus on Osteoporosis, Osteoarthritis and Rheumatoid arthritis. As far as
Gastrointestinal disorders are concerned, focus is on IBD, Hepatology and
Chronic constipation. Procare has taken definite steps towards making
significant inroads in the Gastroenterology segment with two important launches
of Livoluk Fibre (Lactulose + Ispaghula) and Sitcom tab and cream (Euphorbia Prostrata)
during the year. In the process of establishing the SBU in Orthopedic segment,
the company has introduced Vacosteo (Zoledronic acid, 3rd generation
injectable bisphosphonate) once in a year injection for an effective management
of Osteoporosis. Keeping the overall potential in mind, this SBU has also
initiated the process of launching Ibandronic acid kit, the oral form of
bisphosphonate to ensure having a basket approach to increase reach to the
targeted segment of Osteoporosis.
The SBU is progressing towards
achieving significant growth during the current financial year by building
Sitcom and Vacosteo as the mega brands. This SBU promotes a portfolio of brands
with special focus on Orthopedicians, Surgeons, Dentists and
Gastroenterologists apart from Consulting Physicians and General practitioners.
Some of the major brands of Procare across different therapeutic segments are:
Anti-arthritis: Willgo, Kondro OD,
Kondro Acute.
Pain relievers: Nimulid, Nimulid
SP, Nimulid MR, Nimulid HF, Jaiho, Dolzero.
Gastrointestinal: Livoluk, Livoluk
Fibre, OD-pep, Sitcom tab and Cream.
Anti-osteoporosis: Vacosteo,
Alphadol-C, Kingcal.
Growcare
Growcare is the non-chronic care
business of Subject with special focus in Respiratory Disorders, Tuberculosis, Gastro-
Intestinal (GI) and Pain Management therapies. Committed to reduce the burden
of disease, Growcare marks Subject’s presence in therapy areas like Anorectal
Disorders (Piles and Hemorrhoids), Gastro-Intestinal, Respiratory (Cough, Cold
and Allergy), Anti-Infectives, Anti-TB and Pain Relievers. The different
specialties serviced by Growcare are General Practitioners, Chest physicians,
Consulting Physicians, ENT Surgeons, Paediatricians, General Surgeons and
Gastroenterologists. A strong and committed Growcare team of over 350
professionals services to over 50,000 doctors across 270 territories in
Some of the popular brands of
Growcare include:
Anti haemmorohidal: Thank OD
(Euphorbia Prostrata) Tablets and Cream, Fiberforte (Lactulose+Ispaghula)
granules.
Anti-infective: Cefmentin
(Cefixime), Ocimix (Ornidozole+Ofloxacin).
Anti-Allergic: Zomont AL
(Montelukast+Levocetrizine) Tab, Zomont AL Kid.
Cough, Cold and Fever: Toff MD,
Pain Management: Nimulid MD and
Nimulid MD Kid (Mouth dissolving) tablets, Nimulid Suspension, Nimulid
Transgel.
Anti TB: Xeed 2, Xeed 3E and Xeed
4 tablets (fixed dose combinations with Rifampicin), Myser (Cycloserine) and
Myobid (Ethionamide).
BRANDS REVIEW
Over the years, Subject has
established leading brands that enjoy top of the mind recall by the medical
fraternity. The Company’s brands command excellent market share in their
therapeutic segments. By ORG (MAT Mar’10) Sales value, Panacea Biotec is the
49th ranked company in the Indian Pharmaceutical Market with Nephrologists,
Dentists, Orthopaedicians and
Diabetologists giving the best support. As per Stockist Secondary Audit of ORG
(MAT Mar’10), Glizid-M stands at 178th rank among top brands in the Indian
Pharmaceutical market and retain number one position within its category. The
following table sets forth the key brands of the Company across therapeutic
categories and their ranking/ market share in
Critical care brands, Panimun
Bioral, Mycept and Pangraf are also the leading brands in the Organ
Transplantation segment but have a poor reflection in ORG IMS audit, as ORG IMS
SSA audit does not track institutional sales or sales made directly to
patients.
International Pharmaceuticals Business
The year marked the consolidation
year for the international pharmaceutical business – wherein, several new
products/therapies were scheduled for commercialization across various regions.
During the year, the Company’s pharmaceutical formulation business clocked
export sales of Rs. 292.9 million as compared to Rs. 426.1 million during
previous financial year. The Company has identified Organ Transplantation,
Nephrology, Metabolic Disorders, Pain management, Oncology, Gastro-intestinal
and Anti-infective products as major thrust areas for the future. The Company
is currently in the process of registering its products in key new markets
including US,
The major achievements in terms of
international pharmaceutical formulation business during the year have been:
The Company signed a Licensing
and Distribution Agreement with a
leading MNC for distribution of the Company’s organ transplantation products in
Strategic Alliances for marketing
and distribution of the Company’s products in
One of the key markets –
Nephrology line of Products got
accepted in the “Originator dominated” Middle East markets of
Nephrology products included in
the MOH formularies of the following markets of
The Company plans to boost its
growth prospects significantly in the coming years by registering and
commercializing a series of innovative and potential products across all the
targeted markets.
With a view to create a strong and
positive image of the Company in the minds of the local doctors through their
Innovative strategies and robust promotional efforts for the unique products,
the Company has steadily but surely moved from a trading business model to a
“Promotional oriented” approach in markets like Sri Lanka, Vietnam, Kazakhstan,
Philippines, Syria. The Company has placed specialized personnel in these
markets to exercise and enforce the promotional initiatives in these markets.
The Company also has plans to extend this band width to other existing and/or
planned potential markets with more robust strategies and control.
Clinical Research Operations
Clinical Research plays a pivotal
role in the drug development process. Clinical development establishes the
safety and efficacy of a new drug product involving significant expertise, time
and investment. Subject is the first Indian pharmaceutical company to indigenously
implement the Oracle Remote Data Capture (RDC) enabling it to conduct
e-clinical trials. Recently, the Company successfully completed clinical part
of trial of bOPV, aimed towards the planned application for WHO
prequalification. The year 2009-10 witnessed several milestone achievements
from Clinical Research Operations of the
Company, including:
A large randomized controlled
trial in ~1,800 subjects across 40 centers for a novel drug delivery product
for Osteoarthritis;
A multinational trial, spread
across two geographical regions (Asia/EU) and three countries
(India/Germany/Poland) for a GI product;
A long duration trial with a
2-year follow-up to evaluate the relapse rate 24 months after the completion of
therapy for an anti-infective product; and
Phase I trial of indigenously
developed influenza A (H1N1) vaccines.
Pharmaco vigilance:
Pharmaco vigilance is getting recognized today as a specialized function. It
has evolved as a science of collecting, monitoring, researching, assessing and
evaluating information from healthcare providers and patients on the adverse
effects of medicines, biological products, herbals and traditional medicines
with a view to identifying information about potential new hazards and
preventing harm to patients.
Intellectual Property
Subject has a full fledged
Intellectual Property Rights department which manages all the Intellectual
Property from inception to enforcement. As at the end of fiscal 2010, the
Company has filed over 1,300 patent applications worldwide including 189 Indian
patent applications and 67 applications filed through the PCT (Patent
Cooperation Treaty) route.
Out of the total number of patent
applications filed, 380 patents had been granted / accepted for grant. Apart from
this, the Company had in-licensed several patent applications, some of which
are under process in different countries of the world.
Subject has been granted 11
product patents in
Besides this, the Company had
filed 123 applications for the registration of Copyrights of which 81 had been
granted. So far the company has filed over 300 applications for registration of
Trade Marks of which 275 have been registered. In addition to this, the Company
has also filed 51 International Trade Mark Applications in various countries
during 2009-10 of which 23 have been granted. The Company has till date filed
four Design Applications and all of them have already been registered.
SUBSIDIARIES
Best on Health Limited:
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. BOH has purchased a substantial piece of land
on its own and through its four wholly owned subsidiaries (namely Radicura and
Company Limited, Panacea Hospitality Services Private Limited, Panacea
Educational Institute Private Limited and Sunanda Steel CompanyLimited) for
setting up of Sector-Specific Bio-tech Special Economic Zone located at
Umkal Medical Institute Private Limited:
The Company is expanding its
portfolio by entering the fast growing healthcare sector by way of setting-up a
multi super-specialty hospital with the modern equipments in the NCR of Delhi
at Gurgaon through its subsidiary, viz. Umkal Medical Institute Private
Limited. The Company has invested an amount of Rs.166.38 million for acquiring
75.2% stake (59% paid-up) in Umkal Medical Institute Private Limited.
Panacea Biotec Inc.:
A Wholly Owned Subsidiary (WOS) in
U.S. has been set-up during previous year, with its main objects of,
inter-alia, research, development, manufacture, register, market, distribute,
import and export pharmaceutical and biological products etc. in
Panacea Biotec FZE:
This WOS was incorporated in UAE
to perform the activities relating to registration and marketing of the
Company’s patented products worldwide and an amount of Rs.5.5 million (AED
500,000) had been remitted towards its capital contribution.
Rees Investments Limited:
It has been set-up as a Company’s
WOS in Islands of Guernsey (located in the
joint venture and collaborations
and/or for carrying out other permissible activities. Rees Investments has
further established its WOS Company namely, Kelisia Holdings Limited,
JOINT VENTURES and ASSOCIATES
Chiron Panacea Vaccines Private Limited:
The Company’s Joint Venture
Company (JV Company), Chiron Panacea Vaccines Private
Limited (“CPV”), was incorporated
in fiscal 2005 in
PanEra Biotec Private Limited:
The Company’s associate Company,
PanEra Biotec Private Limited (PanEra) is continuing to meet the Company’s
requirement of bulk vaccines and antigens for the manufacture of Hepatitis B
and Combination Vaccines by the Company. PanEra has become a specialized
company focused on bulk manufacture of vaccines and plans to venture into new
products and technologies.
FUTURE GROWTH DRIVERS
Subject aims to become a leading
global research based health management company with an established leadership
in niche therapeutic areas and aims to become the world’s greatest, largest and
most admired Biotechnology Company by 2020. The Company is strategically
positioned to create sustainable competitive advantage through Innovation
(Incremental and Disruptive). Innovation and Global Brand building is a
distinctive position the Company has acquired. 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 Company’s key growth drivers
are as under:
Short-term < 2 years
Global launch of a NCE of herbal
origin in GI segment. Launch of Vaccine for Swine flu (H1N1) and seasonal flu.
Launch of organ transplantation products in ICH regions and key emerging
markets. Launch of drug delivery based products in anti-cancer, CVD, GI and
Pain Management therapeutic segments in key markets across the world. Diversification
in related healthcare segment.
Medium-term 2-5 years
Launch of new IPV based
combination and other Vaccines currently under development for pediatric and
adults.
Supply of anti-TB and ARV products
to WHO/UNICEF. Launch of biosimilars
Long-term > 5 years
Global Launch of NCEs and NBEs.
Potential supply of Anthrax Vaccine to US for national stockpiling program.
Expansion of healthcare segment. In addition to above identified growth
factors, the Company will continue to explore in-licensing of technologies and
products from national/ international research agencies/ institutions to fasten
its growth strategy.
OPERATING RESULTS AND PROFITS
The exemplary performance of the
Company is manifest in the numbers posted for the year. During the year ended
March 31, 2010, the Company registered a record net turnover of Rs.8,843.7
million as against Rs.7,734.2 million during the corresponding previous
financial year, a growth of 14%. The Company registered EBITDA of Rs.1,506.0
million as compared to Rs.2,444.6million during the corresponding previous
financial year. The PBT and PAT for the year grew to stand at Rs.1,180.8
million and Rs.800.2million respectively, as compared to the negative PBT and
PAT at Rs.923.7 million and Rs.690.5 million respectively in the previous
fiscal. This growth was recorded across their business segments, with the
domestic pharmaceutical formulations segment growing by 14%. The Formulations
Segment registered net turnover of Rs.2,398.8 million as compared to Rs.2,262.3
million during the previous financial year. The Vaccines Segment grew by 18%
and registered net turnover of Rs.6,443.9 million as against Rs.5,470.2 million
during previous financial year. The Company strives to remain globally and
regionally attractive to customers and investors by continuing to focus on
sustained growth, cost optimization and efficient management of working
capital. These strategic initiatives are continually fueling the Company’s
growth across its business operations. A detailed discussion on operations for
the year ended March 31, 2010 is given in the Management Discussion and
Analysis section.
CONTINGENT LIABILITIES
(Rs.
In millions)
|
Particulars |
As at 31.03.2010 |
|
Disputed demands/ show-cause
notices under:- |
|
|
a) Income Tax cases |
0.777 |
|
b) Customs Duty cases |
3.999 |
|
c) Central Excise Duty cases |
6.597 |
|
d) Service Tax |
2.745 |
|
Total |
14.118 |
|
|
|
|
Uncalled liability on partly
paid shares of Umkal Medical Institute Private Limited |
115.625 |
|
Demand from Maharashtra State Electricity
Distribution Company Limited |
8.056 |
|
Labour cases (in view of large
number of cases, it is impracticable to disclose each of them) |
2.003 |
|
Premium on Redemption of ‘US$ 50
Million Zero Coupon Convertible Bonds due |
564.996 |
NOTES
a) In respect of Income Tax demand
for the Assessment Year 2007-08, the Assessing Officer disallowed Rs.2,259,000
under section 14A of the Act, computed in accordance with Rule 8D of the Act,
contending the same to be expenditure incurred in relation to income which does
not form part of the total income under the Act in the Order passed under
section 143(3) of the Act. The company preferred appeal before the CIT
(Appeals). The appeal is yet to be disposed off by the CIT (Appeals).
b) In respect of Customs Duty
demand of Rs.3,999,923 towards Customs Duty on certain items imported as
exempted by the Company, the Company has deposited the entire amount under
protest. Thematter 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.
c) In respect of Central Excise
Duty demand of Rs.6,596,620 towards Excise Duty on common inputs used
inmanufacture of exempted and taxable products, the Company has deposited the
entire amount under protest. The matter is pending before Central Excise and
Customs 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.
d) In respect of service tax
demand of Rs. 29,789,842 relating to foreign services rendered and delivered
outside
e) In respect of demand notice of
Rs. 8,055,506 received from Maharashtra State Electricity Distribution Company
Limited on account of wrong tariff rates for the activities at R and D center,
Navi Mumbai, the Company has taken legal opinion which is in favor of the
Company and thus no provision is considered necessary in this regard.
FIXED ASSTES
· Land – Leasehold
· Buildings
· Leasehold
Improvements
· Plant and
Machinery
· Vehicles
· Furniture and
Fixtures
· Office Equipments
· Computer
Equipments
UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER & NINE
MONTHS ENDED 31ST DECEMBER, 2010
(Rs. In millions)
|
Sr. No. |
Particulars |
For Quarter Ended 31.12.2010 (Unaudited) |
For Nine Months Ended 31.12.2010 (Unaudited) |
|
1. |
a. Net Sales / Income from Operations |
2840.600 |
7905.300 |
|
|
b. Other Operating Income |
87.500 |
169.300 |
|
|
Total
Income |
2928.100 |
8074.600 |
|
2. |
Expenditure |
|
|
|
|
a) (Increase) / Decrease in Stock in Trade and Work In
Process |
(55.900) |
18.600 |
|
|
b) Consumption of Raw Materials (Net) |
1211.200 |
3346.900 |
|
|
c) Purchase of Traded Goods |
81.300 |
202.700 |
|
|
d) Manufacturing and Administrative Expenses |
237.200 |
762.500 |
|
|
e) Research and Development Exp. |
192.300 |
438.500 |
|
|
f) Employee Cost |
292.000 |
885.900 |
|
|
g) Depreciation |
182.700 |
540.900 |
|
|
g) Other Expenditure |
147.100 |
418.300 |
|
|
h)
Total Expenditure |
2287.800 |
6614.300 |
|
3. |
Profit From Operations before Other Income, Interest and Foreign Exchange Fluctuation Loss / (Gain) and Exceptional items
(1-2h) |
640.300 |
1460.300 |
|
4. |
Other Income |
31.500 |
85.500 |
|
5. |
Profit Before Interest and Foreign Exchange
Fluctuation Loss / (Gain) and Exceptional items (3+4) |
671.800 |
1545.800 |
|
6. |
Interest |
125.700 |
325.300 |
|
7. |
Exchange Fluctuation Loss / (Gain) |
(14.400) |
20.600 |
|
8. |
Profit after Interest but before Exceptional
Items (5-6+7) |
560.500 |
1199.900 |
|
9. |
Exceptional items |
-- |
-- |
|
10. |
Profit / (Loss) from Ordinary Activities
before tax (8-9) |
560.500 |
1199.900 |
|
11. |
Tax Expense |
134.500 |
279.700 |
|
12. |
Net Profit / (Loss) from Ordinary Activities after tax
(10-11) |
426.000 |
920.200 |
|
13. |
Extraordinary Item (net of
expense) |
-- |
-- |
|
14. |
Net Profit / (Loss) for the period (12-13) |
426.000 |
920.200 |
|
15. |
Paid-up Equity Share Capital (Face Value of Rs. 1/- Each) |
613 |
613 |
|
16. |
Reserves Excluding Revaluation Reserve |
|
|
|
17. |
Earning Per Share (EPS) |
|
|
|
|
a) Basic |
6.83 |
14.40 |
|
|
b) Diluted |
6.36 |
13.45 |
|
18. |
Public Shareholding |
|
|
|
|
-Number of Shares |
15389192 |
15389192 |
|
|
- Percentage of Shareholding |
25.12 |
25.12 |
|
19. |
Promoters and Promoter Group Shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of Shares |
38000 |
38000 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
0.08 |
0.08 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
0.06 |
0.06 |
|
|
b) Non Encumbered |
|
|
|
|
- Number of Shares |
45823554 |
45823554 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
99.92 |
99.92 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
74.82 |
74.82 |
UNAUDITED
SEGMENT-WISE REVENUE, RESULTS, AND CAPITAL EMPLOYED
(Rs. In millions)
|
Particulars |
For Quarter Ended 31.12.2010 (Unaudited) |
For Nine Months Ended 31.12.2010 (Unaudited) |
|
1. Segment Revenue |
|
|
|
(a) Vaccines |
21394 |
56051 |
|
(b) Formulations |
7251 |
23569 |
|
© Research and Development |
0 |
0 |
|
(d) Unallocated |
636 |
1126 |
|
Gross Sale/Income
from Operation |
29281 |
80746 |
|
Less : Inter Segment Revenue |
0 |
0 |
|
Net Sales/Income from Operations |
29281 |
80746 |
|
2.Segment Results Profit (+) before tax and interest from each segment |
|
|
|
(a) Vaccines |
9188 |
19440 |
|
(b) Formulations |
1098 |
5587 |
|
© Research and Development |
(2057) |
(5560) |
|
(d) Unallocated |
- |
- |
|
Total |
8229 |
19467 |
|
Less : i) Interest |
1257 |
3253 |
|
ii) Other Un-allocated Expenditure net off Un-allocated income. |
1367 |
4215 |
|
Total Profit Before
Tax |
5605 |
11999 |
|
3. Capital Employed |
|
|
|
(Segment assets-Segment Liabilities) |
|
|
|
(a) Vaccines |
89808 |
69808 |
|
(b) Formulations |
21365 |
21365 |
|
© Research and Development |
21857 |
21857 |
|
(d) Unallocated |
(45153) |
(45153) |
|
Total Capital
Employed |
67877 |
67877 |
Notes:
1 The
above financial results were reviewed by the Audit Committee of the Board and
approved by the Board of Directors at their meetings held on 27th January, 2011
and 28th January, 2011, respectively.
2 The
Statutory auditors have also carried out limited review of these results and
have given their observations in their report in respect of para 8(i), (ii)
& (iii) below.
3 Tax expense includes
provision for income tax and deferred tax.
4 During
the quarter, the Company has launched new products namely LENOMUST capsules
5mg, 10mg & 25mg (Multiple Myloma for Blood Cancer) under its SBU
OncoTrust, RENHOLD Tablets (Protein for Dialysis Patients) under its SBU Nephrology,
EXEROZ 5mg & 10mg Tablets (For Reduction of Cholestrol) under its SBU Dia
Alpha and FIBERFOS POWDER 90gm & GUSH POWDER 90gm (both for Constipation)
under its SBUs Growcare & Procare, respectively.
5 During
the quarter, the Company has paid Rs.14.101 Millions towards call money in
respect of shares held in its Indian subsidiary, Umkal Medical Institute
Private Limited and provided a loan of US$ 400,000 (Rs.18.101 Millions) to its
overseas Wholly-owned Subsidiary namely Rees Investments Limited.
6 During
the quarter, the Company's WOS viz. Best On Health Limited has acquired 100%
stake in Best on Health Foods Limited by investing Rs.0.500 Million.
7 The
Company has bought back and extinguished 5,592,000 Equity Shares at an average
price of Rs.196.39 per share by utilising an amount of Rs.1098.202 Millions
under its Buy-back offer closed on 15th October, 2010. The Company's paid-up
capital after such extinguishment of 5,592,000 Equity Shares is Rs.61,250,746.
8 As regards the
Auditors’ observations in their report on the Audited Accounts for the
Financial Year 2009-10:
i) With regard to non-provision of proportionate
premium on redemption for outstanding portion of US $ 50 million Zero Coupon
Convertible Bonds (US $ 36.8 million), the management is of the opinion that
the bonds are redeemable only if there is no conversion of Bonds earlier, the
likelihood of which cannot be ascertained presently. Hence, the payment of
premium on redemption is contingent in nature, the outcome of which is dependent
upon uncertain future events. Therefore, the same has been disclosed as a
contingent liability in the Annual Accounts for earlier years. Accordingly, the
proportionate premium on said Bonds during the quarter ended December 31, 2010,
amounting to Rs.42.001 Millions has also not been provided. The total
unprovided redemption premium for period upto December 31, 2010 amounts to
Rs.685.491 Millions. Further, in the eventuality of Bonds not getting
converted, premium on redemption shall be adjusted out of the Securities
Premium Account and would not have any consequential impact on the Profit &
Loss Account.
ii) With regard to capitalization of expenditure on
clinical trials for the purpose of registration of Company’s product in US and
/ or Europe, the management believes that these products would be commercially
viable and there is no reason to believe that there is any uncertainty that may
lead to not securing registration for the products from the regulatory
authorities. An amount of Rs.3.591 Millions towards above said expenditure on
clinical trials during quarter ended December 31, 2010, has also been
capitalised on similar grounds. The total amount of such capitalisation upto
December 31, 2010 is Rs. 502.055 Millions.
iii) With regard to payment of managerial remuneration
of Rs.38.170 Millions during Financial Year 2008-09, in excess of limits
prescribed under Section 198 and 309 read with Part II of Schedule XIII of the
Companies, Act, 1956, without obtaining Central Government approval, the
Company sought approval of the Central Government for such remuneration. While
the approvals to the extent of Rs.14.619 Millions of excess remuneration in
respect of Joint Managing Directors have already been received, the requisite
approvals for waiver of balance amount of excess remuneration of Rs.23.551
Millions are awaited.
9 CARE
has assigned 'CARE A-'(Single A Minus) to Long-term Bank Facilities, 'PR2+' (PR
Two Plus) to the Long-term/Short-term Bank Facilities and 'PR1' (PR one) to the
CP/Short term NCD (within working capital limits from the Banks).
10 Status
of Investors' complaints [in nos.] during the quarter, pursuant to clause 41 of
listing agreement: Opening [0]; Received [3]; Disposed [3]; Closing [0].
11 The
necessary certificate in respect of above Results in terms of requirement of
clause 41 of the Listing Agreement, has been placed before the Board of
Directors.
12 The previous period's
figures have been regrouped/ rearranged/ reclassified wherever necessary.
PRESS RELEASE
Panacea Biotec Limited - Panacea Biotec Signs agreement with Laboratorios Clausen, SA
Related Industry : Pharmaceuticals
Panacea Biotec Limited has informed BSE the Company has entered into an agreement with Laboratorios Clausen, Uruguay for grant of non-exclusive marketing rights of the Company's medicine "Tacrolimus (Pangraph)" for few markets in Europe. The Company has submitted to BSE a copy of the Press Release in this regard.
Panacea Biotec Limited, India's 3rd largest biotech company has signed a non-exclusive marketing agreement with Laboratorios Clausen S.A. Uruguay. The agreement will give an access to Laboratorios Clausen S A to market Panacea Biotec Limited's Tacrolimus (Pangraf) in few markets in Europe.
The agreement was signed in the august presence of His Excellency Mr. Danilo Asteri, Vice President of the Oriental Republic of Uruguay, who was in India on an official visit to sign economic pact.
In a separate agreement of technology exchange, Panacea Biotec Limited agreed to explore the possibility of technology transfer of its product to Laboratories Chosen S A manufacturing facility and for subsequent marketing in Latin American markets. In return Laboratorios Clausen S.A agreed to provide technology of Mycophenolate mofetil (MMF) to Panacea Statue where in Panacea Biotec will manufacture and market the products in few key international markets.
Both the companies agreed to explore the possibilities of collaboration on products in development
On this development, Dr. Rajesh Jain, Joint Managing Director, Panacea Biotec Limited said. We are more than happy to partner with Laboratorios Clausen S.A. and this agreement will help us to explore new opportunities in the Latin American markets. Panacea Biotec always believe in investing in partnerships that provide human, technical and financial resources to engage and empower the community worldwide and this agreement is another milestone in our journey toward our vision 2020.
Other important delegates from the Oriental Republic of Uruguay were also present at the occasion.
About Panacea
Biotec
Panacea Biotec is one of
The company has around 3300 employees
including over 300 scientists. The company also has 24 product patents, valid
in more than 60 countries worldwide.
AS PER WEB DETAILS
PROFILE
Subject is
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. Subject has 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. Panacea Biotec is contributing in
disease prevention and reducing the child mortality.
Ardent Research and Development
efforts have always been a great strength of subject. 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
The exclusive products based on
patented Drug Delivery System include Panimun
Bioral (Cyclosporine), Willgo,
ThankGod (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
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
Subject has significant collaborations and joint ventures with
leading national and international research organizations and corporations.
With Cambridge Biostability Limited,
The company has ultra modern, state-of-art production facilities
at Baddi (Himachal Pradesh), Larlu (Punjab) and
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.
MANAGEMENT
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
Dr. Rajesh Jain, Joint Managing Director
An unwavering commitment to Brand building
and innovation has recognised Panacea Biotec 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
Panacea Biotec. 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 Panacea Biotec brand / service.
Email- rajeshjain@panaceabiotec.com
Mr. Sandeep Jain, Joint Managing Director
They have developed a powerful
Finance Management support platform, allowing us 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 Panacea Biotec and this pursuit has resulted in achieving
greater milestones in the past couple of years.
Email- sumitjain@panaceabiotec.com
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to 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.44.52 |
|
|
1 |
Rs.72.71 |
|
Euro |
1 |
Rs.64.41 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.