Torrent Pharma Ltd


(Aman Vij) #269

Torrent Pharma’s 2016 Annual Report is out http://www.torrentpharma.com/download/financials/annual_report/AR-2015-16.pdf

The things that stand out for me is company’s focus on NDDS, NCE, Biosimilars and contract manufacturing


(nabendu) #270

(Growth_without Debt) #271

http://www.sharekhan.com/stock-market/news/Torrent-Pharma-gets-USFDA%E2%80%99s-tentative-ap/4d548d6f-d7ca-49aa-8e2f-24839167df7a/MustKnowNews/161/News.htm


(Growth_without Debt) #272

If FDA approve generic version of Crestor / Astra loose its case, Torrent Pharma will get huge market entry


(Sumeet Shah) #273

@hnk_so , this news item from ShareKhan on Crestor is dated April 2015. Crestor patent is expiring in July. Now it is to be seen what happens next, whether will they get extension for seven years or not. If not, can be a boon for Torrent.


(Tarun) #275

To me, seems that the news about Torrent acquiring Glochem warrants some digging before even calling this out as a positive or negative for the script.

The transaction: Going by the limited info available on the public domain (mainly print media) seems that Torrent has paid ~300 Cr. In return what it is getting is UD FDA + European regulatory approved Vizag API Unit along with the DMF of Glochem. The site is a multi-product facility for advance intermediates and active pharmaceutical ingredients (APIs).

Rational: Understandably, this is driven by the urge of backward integration for Torrent wherein existing business(formulation) will be supported by Glochem’s existing business (API). Also, in the transaction, they getting USFDA approved sites. That’s why media refer to it as ‘building block’.

Apprehension/doubt/unanswered question: Understandable that Torrent will have in-house API capability + FDA approved site thereby enable it to be aggressive on ANDA. However, going by the DMF file posted by @pikrohit for Glochem, dont think that those are much sought after names (intend to do some investigation on the current market potential).

  1. Is the underlying proposition that Torrent will get some of the ‘new APIs’ manufactured at Glochem Vizag facility (for which it is planning an ANDA) after getting those duly approved/added in DMF via Glochem/or self.
    Will that not be a rather long route?
  2. Or, Torrent, moving forward with the existing Glochem DMFed APIs and scout for ANDA within that space. not sure if bang for the buck will be there in that case

At this juncture, the questions may look very naive becuase of lack of detailed info/implication available on public domain about the deal. Only meaningful info that I have is BSE announcement (link ) and on ET (Link).

Personally, I was positive while the news was around Torrent looking out for Gland. Because that by itself would have paved way for some niche business for Torrent.

Perhaps, this may be a real good news for Torrent (as perceived by market). Just that I am getting ticked-off by the fact that a company worth 300 Crores dont even have a workable web site. Throughout the day the Glochem website is giving me some forbidden error.

Will appreciate if others can share their perspective on this. (both pros and cons).

Disclaimer 1: Torrent Pharma consist of ~14% of my PF. No transaction in last 30/60 days.
Disclaimer 2: Still learning…

Regards,
[email protected]


(Bhaskar Jain) #276

You can have a look at the archived version of the website here - http://web.archive.org/web/20160306160516/http://glochemindia.com/


(Gaurav Agarwal) #278

AstraZeneca Draws DOJ Rebuke for Push to Shield Crestor from Competition


(Gaurav Agarwal) #279

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.


(Raj) #280

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.


(Gaurav Agarwal) #281

@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.


(Prabhakar) #282

Torrent Pharma finds the right formula for business growth

Read more: http://forbesindia.com/article/anniversary-special/torrent-pharma-finds-the-right-formula-for-business-growth/43315/0

Disc : invested


#283

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?


Lincoln Pharma ... the next mid-cap pharma in the making ...?
(Manish Vachhani) #284

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.


(Akshay Kumar) #285

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?


(Alphin) #286

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.


(bijoy) #287

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.


(Gaurav Agarwal) #288

Judge refuses to block generic versions of AstraZeneca’s Crestor

Glenmark got ANDA approved and will launching gCrestor today.


(hemtan100) #289

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.


(Tarun) #290

@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