Could anyone of us attend the AGM, Any update will be useful, thanks
Donald - there is a recent report by Edelweiss that confirms the common occurrence of Form 483, when facilities come in for USFDA inspection. In the case of Indian companies, as many as 60% of the inspected facilities have received a Form 483 till date. The report concludes that it is difficult to determine whether a Form 483 will result in a warning letter or import alert.
To put the significance of Form 483 in perspective, below are some numbers from the report
1.There have been 635 USFDA inspections in India
2). 383 Form 483âs have been issued in these inspections (60% cases)
3). Resulting in 21 Warning Letters & 10 Import Alerts
Worth noting is that a majority of the stricter actions (WL/ IA) have taken place in the past 5 years given USFDAâs stricter stance towards compliance.
As the data suggests above, Form 483 issuance does not result in the Company stopping manufacturing operations at the facility and business continues. If the response to Form 483 is not satisfactory, then in some cases it could lead to WLâs or IAâs.
aForm 483 Observation,
** aWarning Letter.India **
483)of ** periodfrom 2013. ** FDA.Only 21 warning lettershave http://www.mpadvisor.com/abstractdetails.aspx?id=3465 Link: http://www.mpadvisor.com/abstractdetails.aspx?id=3465 
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Shilpa featured in latest Motilal Wealth Creation Study as Potential 100x Bagger Stock
Found this to be a good read on the MPP (Medicines Patent Pool) program.
Whats spurting this 20% up move in last 3 days? Couldnât find any news.
It is not only past 3 days, but it has been going up consistently since MOST wealth creation study suggested this stock as a potential 100 bagger. Before that the stock was consolidating between 500-550 range for almost 2 quarters. Looks like some big guys are taking MOST wealth creation study very seriously.
Anyways, in this high flying market, where a pe of 60-70 is considered very normal, it is trading around 40 pe. Should I say it is cheap :).
Disc- Invested from much lower levels.
Negative for Shilpa?
Gilead denied patent rights in India forHepatitis C drug Sofosbuvir.
Was on a bad internet connection (mobile) earlier; moved to a better one and was able to dig up the article on the agreement between Shilpa, Gilead and Medicine Patent Pool.
The agreement will allow Shilpa Medicare to produce five key HIV medicines for sale in 100 â 112 countries, depending on the medicine, and covering a majority of people living with HIV.
The medicines covered in this agreement are: tenofovir, emtricitabine, cobicistat, elvitegravir and a combination of the four known as âthe Quad.â
âSofosbuvirâ hasnât been mentioned anywhere in the agreement but Shilpa is a Generic licensing partner for Gilead in HIV medicines, along with Cipla, Ranbaxy, Cadila and many others.
Sorry for the mix up! The patent rejection was for a Hepatitis C drug (partners includeCadila, Cipla, Ranbaxy Laboratories,Strides Arcolab) while Shilpa is a partner in HIV medicines (partners include Aurobindo, Cadila, Cipla, Ranbaxy, Shasun, Shilpa, Strides Arcolab).
Is this pledge of shares? http://www.moneycontrol.com/stocks/reports/shilpa-disclosures-under-reg136sebi-prohibitioninsider-trading-regulations-1992-917036.html
Disappointing set of numbers this quarter.
Sales up 3% compared to Q3 last year. Sales Rs. 145.22 crores.
PAT down 15.45% compared to Q3 last year. PAT Rs.19.52 crores.
Hi,
Could you please provide result link as I am not able to find in BSE or NSE site.Thanks
Is Shilpa heading the Hawkins way? Flat qtrs and too much hope on future backed by some strong hands holding the stock! I am tempted to book out my STCG since one more flat qtr and no news on usfda will take it perhaps back to the 473/ target, Daljeet Kohli gave, post Q3⌠Pl share ur views
Any idea on why Shilpa management doesnât have habit of providing interview?
I sent an email today to the investor relations contact abt US FDA approval and got following reply (within an hour) -
"Sir,
The Company has applied for the approval of US FDA and the same is in process at their end. As and when the approval is received the same would duly be intimated to the stock exchanges."
Shilpa Medicare Ltd has informed BSE that the following Manufacturing facilities of the Company have been inspected by USFDA Auditors:-
1). Shilpa Medicare Ltd, 4- A, Deosugur Industrial Area, Deosugur, Raichur. 2). Shilpa Medicare Limited 100% EOU, 33-33-A, 40-47, Raichur Industrial Growth Centre, Wadloor Road, Chicksugur Cross, Chicksugur, Raichur. Result of the Audit is awaited.
Source: http://www.bseindia.com/corporates/ann.aspx?scrip=530549&dur=A&expandable=0
MD interview on the audit and other topics
For background I know almost nothing about the Shilpa Medicare business but upon looking at its books of account I have a few observations that may be useful to those who own or plan to own shares in the business.
If you have anything to say on these observations, please do.
1). The Promoters increased their shareholding in a cashless manner by about 16% in the quarter ending March 2009. This was done by amalgamating the firm owned by them (Shilpa Organics Pvt Ltd). This firm was reported as an associate in the 2006 Annual Report with high related party transactions. The financials were not known and there is no way to assess if the transaction was done fairly.
2). The company has diluted almost 100% over the past 10 years. This means the profits figures on a per share basis will be nearly halved or that annual growth rate is lower by 25%
3). At 9.4% annual EPS growth in the last 5 years is low for a growth stock.
4). The company recently raised ⚠750 million by diluting about 4.8% in May 2014 for âfunding current / future expansionâ. This may as well have been raised by debt which is preferred as it is cheaper.
The basis for these observations are also attached for those interested.
Warm regards,
Kimi
Valuepickr-post-28042015.pdf (33.2 KB)
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