You can have a look at the archived version of the website here - http://web.archive.org/web/20160306160516/http://glochemindia.com/
CNBC report on Crestor launch. The analyst mentions that Torrent may launch in Q3FY17 only. I could not find any why torrent will not launch immediately?
I have tweeted her to find what could be possible reason for delay in launch?
As AstraZeneca’s Crestor goes off patent, generic cos to jump in
Disclosure: Not Invested.
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As far as I remember, management mentioned it in their annual call that they will not be part of the first wave of launch. FDA had some questions which they did respond and awaiting the clearance.
@raj1968 You are right. Management has mentioned it in q4fy16 concall. Here is the screenshot from transcript downloaded from ResearchBytes.
I could not understand the reason for this delay by Torrent. They already have a tentative approval as far as I know.
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Torrent Pharma finds the right formula for business growth
Disc : invested
Torrent Pharma is doing well. I’m tracking this stock from a long time but not able to figure why it is not getting traction from investors.
Here’s the comparison with its peers (outsourced from screener.in):
PE is lowest.
Dividend Yield is highest
Earning Yield is highest
ROE and ROCI are also highest.
I think this is going to be an excellent pick in future.
Also, its growth track is awesome:
Compounded Sales Growth:
10 Years: 19.95%
5 Years: 24.89%
3 Years: 27.63%
TTM: 43.48%
Compounded Profit Growth:
10 Years: 38.78%
5 Years: 46.47%
3 Years: 57.55%
TTM: 147.27%
What’s your views?
Sowmay, you need to go through the entire thread and know about the blockbuster product in US played out well in the last financial year for torrent. Going forward the same may not have meaningful impact.
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Compounded Profit Growth:
10 Years: 38.78%
5 Years: 46.47%
3 Years: 57.55%
TTM: 147.27%
Manish, your statement about blockbuster product justifies for 1 year but what we are seeing is 10,5,3 years of decent profit growth. Do you still think the valuation is justified?
Sowmay & Akshay,
I will give a simple expalantion of the P/E valuation difference.
If you ignore the last years EPS coz its a 1 time profit. The revenue growth of torrent is approx. average of 20% yoy. Now 2015 EPS is 42 , So extrapolate 20% growth to this year its 50. Now if you check P/E = 1396/50 P/E is 28.
However the advantage this stock has right now is cash surplus coz of 1 time profit , that it can put to use and develop new products.
Same is the situation & valuation for Alembic pharma. Both are good growing companies and may provide a good return in long term if they develop competitive products.
Invested in both.
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Akshay,
Revenue forecast for next two years are muted for Torrent. Stock is trading @ 18x fy18 eps. Please go through AR, concalls & RR’s to understand more.
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Judge refuses to block generic versions of AstraZeneca’s Crestor
Glenmark got ANDA approved and will launching gCrestor today.
Glochem buy plus crestor launch in October should prop up this year’s bottom-line too. Q4 EPS was reflective of US base business after significant erosion in gAbilify. Extrapolating this forward, stock is not too expensive.
@hemtan100 - pls take a note of management commentary on most recent call.TorrentPharmaceuticalsLimited.pdf (112.5 KB)
As indicated on page 9, the are not going to launch gCrestor gereric immediately after patent expiry. As we have seen, first mover generally garner market share and late joiners play on pricing only.
On Glochem, I am still to make sense how it will be a ‘building block’ as cited by press. Either ways expecting Glochem impact in next few quarter may be an over expectation,IMHO…
Disc: invested
2. Still learning
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Anyone’s got a clue on Torrent’s oncology greenfield project? What are the timelines and where’s the project location?
It seems to be in Kalol. Search for Torrent on this page of the Environment Clearance Site. Welcome to PARIVESH
You can see about the location and ec clearance status. Screenshot by Lightshot
Edit: It seems to be in a village called Bileshwarpura. Files on the EC site reveals all the details about the project.
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Bileshvarpura is close to GIDC Chhatral. Why are we interested in location?
What is the Oncology pipeline of Torrent? Any blockbuster ANDA filed?
I must say the company has lost a big opportunity by not launching gCrestor. Can we ask the management why they could not launch?
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I will be attending the AGM on Wednesday.
If this & any other questions are needed to be asked., I can do the same.
- why Crestor launch so delayed? late launches, only compete on price. why not now?
- what are they doing with the Glochem products?
Thanks @mukesh_gt for taking a lead.
Before coming to my wishlist of questions, just to be sure, are you attending the AGM or the Wednesday evening analyst concall? I think @pikrohit attended Q4FY16 concall and raised 1 question. Just as a suggestion, may be both of you can coordinate to get best out of the effort and opportunity.
coming to my set of questions:
- This being first investor call post Glochem (i think), I am sure institutional analyst will have good number of questions around this acquisition. This is still worth pursing and probing further if ‘cristal clarity’ does not emerge out of those questions.
-> What is Glochem all about, key API’s it is into, geographies etc. (may sound very very naive but unfortunately dont have much clarity in public domain, at least not to me).
-> If and how this acquisition fits into Torrents scheme of things (specially near to mid term, in long term things can be made to fit.
).
- gCrestor (rosuvastatin Calcium) was a real good opportunity (worth ~USD 6B). Unfortunately, seems that Torrent has an (huge) opportunity loss here. Further, last quarter management commented about approx 10 ANDA for entire FY16 however as of now we are in Q2 and so far we dont have any approvals. What is managements perspective on that? where things went wrong?
-> From where management anticipates new growth coming i.e new set of products.
- Before Glochem acquisition, somewhere management indicated that they have an appetite for upto ~300- 600 USD million acquisition. Likewise they had sought after for QIP + bond worth ~10,000 Cr INR. Now that Glochem has came by at ~300 Cr. INR, do they have an appetite for further acquisitions in near future?
…this question to understand inorganic growth is important more so since Abilify has ran its due course and new products are not coming out of Torrent stable.
Thanks again for your ownership Mukesh.
Regards,
T@run
Disc:
- Invested in Torrent, ~10% of my PF. no action in last ~6 months.
- Still learning.
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