Torrent Pharma Ltd


(Rohit Ojha) #248

Recall by Torrent.No major impact on numbers but these things shouldnt happen.


Ahemdabad based Torrent Pharma is recalling 20,952 cartons of Telmisartan tablets used for treatment of hypertension in US manufactured at its Indrad facility due to presence of ‘foreign substance’ in them. The tablets in the strength of 80 mg are made by Torrent for its US arm Torrent Pharma Inc, the latest US Food and Drug Administration (USFDA) enforcement report said. Torrent is recalling the tablets in a firm initiated ongoing nationwide Class III recall on account of “presence of foreign substance: product complaint for the presence of foreign matter identified as silicone within the tablet”, US health regulator said. As per USFDA, a Class III recall is initiated in a situation in which use of, or exposure to, a violative product is not likely to cause adverse health consequences.


(Venkatesh) #249

@pikrohit When did this news come out?


(Rohit Ojha) #250

Yesterday. You can check the date on the article.


(Rakesh ) #251

This might have impact on abilify use. Actual impact on Cos performance will have to be watched carefully.


(Hitesh Patel) #252

rakesh,

Most of the juice in abilify has been milked by the companies concerned and now due to severe price erosion I think it will at best be a small molecule.


(Rohit Ojha) #253

Another party in talks on gland pharma

Shanghai Fosun Pharmaceutical (Group) Co. Ltd, the Hong Kong-listed company controlled by billionaire Guo Guangchang, said it had submitted a non-binding proposal to acquire a 96% stake in India’s Gland Pharma Ltd.

Private equity firm KKR and Co. owns a significant minority stake in Gland Pharma.

On 9 May, Fosun Industrial Co. Ltd, a unit of the Chinese drug maker, made a non-binding proposal to existing shareholders of Gland Pharma, the company said in a statement to the Hong Kong stock exchange on Monday.

“As at the date of this announcement, the non-binding proposal is still in a bidding process on a non-exclusive basis, which shall be confirmed by the relevant parties pending the selection and acceptance by the existing shareholders of Gland,” the statement said.


(JKS) #254

Torrent Pharma Q4 net may jump 145%, margins likely at 30%

Read more at: http://www.moneycontrol.com/news/result-poll/torrent-pharma-q4-net-may-jump-145-margins-likely-at-30_6573221.html?utm_source=ref_article

I think that there is no momentum at all and the Abilify induced surge may be considered as one off

PS - invested. no transactions in last 30 days. Bracing for another spectacular result becoming a wash. All I can do is to remember this immortal quote and keep holding
"Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." - Paul Samuelson


(YA) #255

Samir Mehta on the rise of Torrent Pharma on Passion To Win


(Chintan) #256

Consolidated Results in Rs. cr.:

Q4 FY16 v/s Q3 FY16 (revised)* v/s Q3 FY16 (original) v/s Q4 FY15:
Sales: 1499 v/s 1539 v/s 1539 v/s 1154
PAT: 357 v/s 348 v/s 483 v/s 130

FY 16 v/s FY 15:
Sales: 6676 v/s 4653
PAT: 1722 v/s 751

  • Net of goodwill for Zyg Pharma

(JKS) #257

Awaiting detailed concall update. I heard it in pieces but from what I heard, I will take the pipeline of ANDA filings as big positive.


(Rohit Ojha) #258

Here are my notes

Domestic business-
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.

US Business
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.


(Dhwanil Desai) #259

@pikrohit,

Excellent notes. Most of the points you have captured. Couple of points to add from my notes

  • They are entering into 9 collaborations for R&D projects with outside companies to fill the gap for capabilities of the company and fast track the filings. 3 of the products collaborated are soft gel products. This model of collaborations with R&D companies will continue as it will allow company to leverage its strong commercial and marketing skills

  • In US market the channel consolidation is not good for the Indian companies as there are only 4 large Customers and hence they do ask for competitive prices. However, large companies like Torrent are at advantage because of the long standing and deep relationships and good product portfolio. Torrent will have to adapt to the new environment to maintain its position.

  • Abilify the prices have stabilized considering current players in the market. However, if there are new entrants, prices may fall further. Company expects at least 2 new entrants in the time to come.

  • Unless there is strong price erosion in the abilify, company expects to maintain current EBIDTA margins

  • Measure taken in domestic business have started showing results and margins are likely to improve which may offset the impact of NLEM affected business (1-2% of Torrent’s business)


(Ashish) #260

Torrent Pharma in talks to buy Glochem Industries for Rs 300 crore

Read more at:
http://economictimes.indiatimes.com/articleshow/52458610.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst


(Saji John) #261

Torrent increasing 50% on R&D and planning to launch 10 products in US market http://www.business-standard.com/article/companies/torrent-pharma-plans-50-hike-in-r-116053000475_1.html


(Rohit Ojha) #262

Next triggers for torrent-

  1. Approval for crestor (patent expires on july 8th). First generic has already been launched
  2. Use of cash generated from abilify (this will take time as gland acquisition is off the table now)

Abilify will still generate something
Detrol will also support the US numbers.
Europe should also slowly improve.

I think the markets haven’t fully priced in the execution of abilify, mainly because of lack of ANDA filings in fy16. I had bought torrent as an opportunistic bet but it hasn’t moved in last one year or so.


(JKS) #263

I am in the same boat as you Rohit. What baffled me is that another good result took this nowhere. Somehow, I sensed that this will happen since there was no momentum, leading upto the result. The subsequent good concall and as much 4 ANDA filings promised for Q1 wasn’t enough to cheer this stock. I am consoling myself with what Hiteshbhai used to say, that it has to run, when one wants to sell and not before.


(Prabhakar) #264

Torrent Pharma: Strong base, robust outlook

Torrent Pharma has seen a series of brokerage upgrades, as new approvals and higher research & development (R&D) spends are expected to improve its US prospects, while higher exposure to India vis-à-vis peers should translate into better growth. While most pharmaceutical companies are raising their R&D spends, the increase is the highest for Torrent. It plans to raise its investments over FY16-18 by 55 per cent, with R&D as a percentage of sales expected to rise to eight per cent in FY18, from under four per cent in FY16

for more details

Disc : invested


(Prashant Kulkarni) #266

Torrent Pharma acquires Glochem Industries Vizag API plant which is approved by USFDA
http://www.bseindia.com/xml-data/corpfiling/AttachLive/B0182FA5_C6DA_4AA8_ACB3_FC747453BD05_134343.pdf


(Rohit Ojha) #267


I checked for the US DMFs of Glochem. List doesnt have any exciting names


(Vaibhav1512) #268

this acquisition news came in ET last month. the article mentions deal value to be around Rs 300 crore.

http://m.economictimes.com/industry/healthcare/biotech/healthcare/torrent-pharma-in-talks-to-buy-glochem-industries-for-rs-300-crore/articleshow/52458610.cms