Concall Update Q3FY17
India 34%, US 21%, Germany 19%, Brazil 11%
Focus on speciality, productivity, brand building, pipeline.
- Signed 6 deals this year and will sign 3-4 more this year. 2+ will be in soft gelatine capsules.
- Will exceed 15 ANDA filings this year and 20 next year… derma, opthal, onco filings
- In years ahead 10-11 launches, post that launch rate would be same as filing rate.
- Zyg-2 filings this year and 3-5 per year in future
- Products in derma space facing pricing- 2 types of products…1) low hanging fruits- Taro Fugera type of products to get Zyg front end established. 2) high risk and high gestation period products. Mix of me too and lesser competition products.
- NCE/phase 3 ambition is limited to domestic market. Minority of R&D spend to this
India- 12% growth for Q3. 77% revenues come from chronic, subchronic segment. Productivity has gone up to 6 lakhs during Q3. Specialist focus. Launched one combination drug in Q3.
- 2-3 more biosimilars in FY18
- India january general market hasn’t been good.
US- We continue to face pricing pressure in US for existing products in high single digits. Only 2 new launches in US in Fy17 which have not compensated for loss of pricing and the high base of Abilify. 10 ANDA filings in Fy17 which includes 2 derma and 2 FTFs. Will launch 3 products in Q4 Fy17. We have 21 ANDAs under review and 4 tentative approvals. Dahej- 8 approvals and expect 4 more in this year.
- Detrol LA market share- increasing capacity and will increase market share. 19% share in December.
- Renagel- Were waiting for USFDA approval earlier. Waiting info from USFDA. Remove from short term forecast. Maybe longer than second half of FY18.
- Quetiapene ER- 2nd half of 2017. Important opportunity but wont be day 1 launch in May 2017 as we have to respond to USFDA.
- Fingolimod-Torrent was party to IPR case. No comments except that did not pursue IPR route now against Novartis.
Germany- 24% in rupee terms. Chugging along nicely. 75-80% business is tender base. Growing but challenge is profitability.
Brazil- 35% growth in INR. Q3 constant currency growth was 12%. Launched 2 new pdts after gap of many years- First branded generic of olmesartan and trazodone. PCPM is at 107000 real compared to 77000.
Drop in gross margin sequentially- 60% due to discontinuation of Romania operation. 40% due to US pricing pressure.
Depreciation has increased. Will increase some more due to API
Low tax rate of YTD 14%. Wont be more than 14-16% for full year. Standalone benefit due to depreciation and R&D. Inventory at subsidiary level has gone up and that has caused lower tax.
1200-1500 cr investment in next 3 years…onco facility, sikkim expansion, dahej expansion doubling capacity. Not necessary that debt will go up- depends on cash flows.
Interest cost decreasing due to repayment and refinancing
Other income…forex, treasury gains of short term investments.