Here are my notes
Launched a new anti diabetic product. Biosimilars business off to a rocking start with 2 launches.
India formulations- low exposure to regulations. Almost no effect 1-2%. FDC ban on alternatives to Chymoral may benefit Torrent. Sales force productivity focus…increased 30% MR strength 2720.
Low growth in Q4 due to reduction in inventories. Inventory days have come down from 79 to 62?
Price increase on Elder portfolio have been taken in end of Q3.
Launched 5 products in US in FY16…Transferred one product from Sun Ranbaxy
Indrad inspection was a product specific inspection….2 products. It went well and we hope to get EIR in a few months. 2-3 minor 483 observations were product specific.
Active projects- 121, 9 externals projects compared to 40-50 last year. 15-20 ANDAs will be approved next year.
FY17 will have 10 launches of USD 9bn= 6bn Crestor+ others 3bn.
Crestor will be competitive and Torrent will not be in wave 1. It will be a tough marketing challenge. Balance 9 launches- most of them will be before end of calendar year. All would be oral solids.
Price erosion happened for Abilify and will continue. It is still a good product. Market share as per IMS (March) 4% and actual number is higher. Abilify Sales decline can be partially offset by scale up of other products from Dahej for US business. 3 prdt approvals (site transfers) happened from Dahej. By next year we will have 10 approvals from Dahej. As pdts get ramped up we will supply 180-200cr tablets from Dahej. Currently Indrad does 300cr tablets. Dahej will free capacity for Germany, Brazil, UK, Romania in next 2 years.
Detrol LA- Torrent had 15% share in March. 4 player market…share can go up in coming months.
Nexium- Slow ramp up as brand is still occupying 44% share. 5-7% market share guidance due to complexity of manufacturing. Manufacturing cycle is 45 days. Unfortunately cant make it in Dahej yet. Pricing is not that great with 6-7 player market. Other products maybe better so wont increase Nexium capacity at expense other products.
Base business of US- 0.5bn sales can be sustainable in next 2-3 years. ex-abilify base business gone up in a good way. 4 large customers
Europe grew 10% cc…large part is Germany. Capacity constraints getting solved slowly due to freeing up of capacity at Indrad.
Brazil volume growth 8%. Its not what it was but it is still a good market. Between 2010-2013 it was growing 13%. Between 2015-2020 things have changed…macro issues. Hopefully 2018 onwards Brazil may show growth. We are thr for long term.
R&D expenses outlook- FY16 was 4% of sales, 250cr. Next year we are looking at 8%. We will like to maintain it at that level going fwd as well. Absolute value terms also it will be higher. Quadrupled R&D spend for Brazil. Indian R&D will also go up- First in India pdts and first in the world, innovative delivery forms (similar to 505B2 in US) for all divisions CMS, CVS, GI etc.
R&D is priority number 1. 400 scientists hiring was started in Q1 FY16.
ANDA filings- 4 filings each Q.
Few derma projects from Zyg pharma.
Capex- 1500cr for 2-3 years including maintenance capex.
Acquisition- 300-600mn USD range but we can even do larger acquisition. We need to diversify from oral solid retail to hospital presence. Current is not a part of Gland acquisition.
Tax rate 23% MAT rate. We will be under that.