Dr Reddy’s has another setback today with a US court asking it to halt the sale of gNexium…This could be positive for Torrent which has recently got approval for nexium, a USD 5.2 Bn drug…torrent is one of the 5 players who have received fda approval for nexium…
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It is really testing the patiency…
2 back to back blockbuster results…why Mr.Market is ignoring the last Q1 and Q2 results…
is market expecting that those are one offs.
increased the allocation from 3% to 10% in last 3 months…between 1370 to 1600…
Why are u frustrated? If u want to sell a stock then only u want higher prices. 
I would be happy if Torrent pharma keeps range bound till the time I decide to sell it. Its only then that I want it to go up. 
If the financials keep playing out the prices will inevitably follow. Markets often take a long long time to accord proper valuations to some companies. Case in point is Ajanta Pharma where inspite of stellar growth figures back in 2010-13 period the stock remained confined to PE ranges of 6 to 12.
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Hi Hitesh,
I have been a silent reader in this forum and trying to contribute wherever possible with my little knowledge. I am really thankful to all the senior members for sharing their wisdom. In particular I went through your portfolio thread and I believe you should now be writing a book on investment (if not already) 
My Query - In the Pharma space I am holding Shilpa and Granules (5% each) and I have been looking into Torrent for a while. What would be your take in the right order of long term value creation starting highest - Torrent, Ajanta and Anuh. Particularly interested in the growth potential. Anything else that you would suggest to look into? I am also keen on MPS though I may have missed the train earlier.
Torrent Pharma gets UK regulator booster
http://www.thehindubusinessline.com/markets/stock-markets/torrent-pharma-gets-uk-regulator-booster/article7884359.ece
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samirhuli,
Regarding pharma stocks I am not too sure at this stage which co from among the ones u mentioned is going to create the max wealth. But most of the US facing pharma companies who dont have regulatory hurdles are sitting pretty and are on track to make decent gains in next few years.
Regarding your comments about missing the bus, in case of the stock you are tracking or the girl you are wooing, its never too late to take the plunge.
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thanks for the link.
this might allow torrent to extract some more juice from the abilify opportunity.
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what is the market size of the abilify opportunity in UK ? Any website to refer to, for the numbers on UK sales and approvals?
Dr Reddys and Camber (hetero) have been asked to stop shipments of nexium bcos of the purple color of their tablets. This leaves Teva, Mylan and torrent in the fray for the nexium molecule.
changing the color of the tablets will take a month or two and this is the window of opportunity for torrent pharma to gain market share and make the most of the nexium opportunity. Nexium is also a big molecule with few players.
Looks like torrent has had another piece of good luck at the cost of other players in a big molecule. One needs to see how torrent exploits the opportunity it is presented along with a piece of good luck.
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Chinese aid norms curb exports of Indian drugs to markets in Africa, Asia & eastern Europe
By Raji Reddy Kesireddy, ET Bureau | 18 Nov, 2015, 03.09AM ISTPost a Comment
HYDERABAD: The stipulations increasingly being made by China while extending financial aid to several developing economies to buy medicines produced by their manufacturers have of late begun denting the exports of Indian drugs to these countries. A senior commerce ministry official said India currently exports around $15-billion worth medicines and the stipulations of China are probably affecting India’s drug exports in nearly a fifth in some markets in Africa, Asia and eastern Europe.
China has been steadily accelerating aid to several developing economies towards capacity building in infrastructure, goods, materials, technical, human resources, agriculture, medical and health sectors. As against the $10-billion assistance extended between 2009 and 2012, Chinese President Xi Jinping announced doubling the aid to $20 billion during 2013-15.
Chinese aid norms curb exports of Indian drugs to markets in Africa, Asia & eastern EuropeCautioning the Indian drug makers on such adverse results, Director General of Indian Pharmaceuticals Export Promotion Council (Pharmexcil) PV Appaji said the domestic pharmaceutical companies were advised to step up their marketing efforts. “China has been increasingly insisting on several African, eastern European and a few Asian countries to buy its medicines while extending financial aid. As a result, there has been a dent in Indian drug exports to these economies,” Appaji told ET. “We are advising our medicine manufacturers to take note of this and accordingly sharpen their strategies for these markets to regain the lost ground and improve market share.”
India exported $15.2 billion (Rs 95,000 crore) medicines in 2014-15 and around 15% of these medicines were sold in economies that are availing concessional loans from China. Pharmexcil, in consultation with Union commerce ministry, is currently devising strategies to help the Indian drug makers improve their exports, said Appaji.
At present, China is the third-largest pharmaceutical market with over $100-billion size, striving to narrow the gap with its rivals US and Japan, the two top players with a size of $300 billion and $110 billion, respectively. As part of its efforts, China, the world’s largest player in active pharmaceutical ingredients (APIs), or raw material that goes into medicines, has stepped up investments in pharmaceutical formulations or finished medicine dosages.
A senior banker with exposure to foreign lendings said China Development Bank (CBD), China Import-Export Bank (C-EXIM) and state-owned export credit insurance giant Sinosure were known to often structure their financing package where the concessional loans were usually linked to awarding contracts to the Chinese firms.
Terming them as ‘tied-lending’, the banker, who did not want to be named, told ET: “Depending on the sector to which the concessional loans are being extended, China prescribes loan conditions that require 50-70% of loan proceeds be spent on availing Chinese goods and services.” The same banker said: “While extending $200-million loan to Nigeria, the CBD of China had earlier insisted on using the proceeds to buy products from Chinese telecom giant Huawai. While lending to Angola, the Chinese banks had insisted on spending over 70% of it on buying goods and services from the Chinese firms.”
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Interesting thing is Innovator (AstraZeneca) still has 60% market share despite Teva launching the generic in January, 2015. Torrent management also stated in the concall that its a high volume product and they are targeting high single digit market share. The withdrawal of DRL and Hetero from Nexium market might also result in higher pricing for the near term. Even DRL hasnt been able to garner meaningful market share despite launching it almost a Also, it might help in Torrent getting higher market shares and getting inroads in the some of the pharmacy retail chains.
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Hi Hitesh, what has been the issue with color of the tablets ?
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The innovator had purple colored nexium and they objected to anybody else using that same color. thats where Camber and DRL got stuck bcos the objections raised by innovator were upheld.
Torrent were not in purple color and so is spared from these objections.
Many a times such small things make a big difference.
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UK govt granted approval on October 01, 2015. Pl refer attachment
1 Marketing authorisations granted in October 2015
PL Number Grant Date MA Holder Licensed Name(s) Active Ingredient Quantity Units Legal Status
PL 36687/0142 01/10/2015 TORRENT PHARMA (UK) LIMITED ARIPIPRAZOLE TORRENT 10 MG ORODISPERSIBLE TABLETS ARIPIPRAZOLE 10.000 MILLIGRAMMES POM
PL 36687/0143 01/10/2015 TORRENT PHARMA (UK) LIMITED ARIPIPRAZOLE TORRENT 15 MG ORODISPERSIBLE TABLETS ARIPIPRAZOLE 15.000 MILLIGRAMMES POM
UK Govt Approval to market Abilify
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Per Zauba, India has exported
~997cr of gNexium to US (from Mar 01, 2015 to Nov 12, 2015)
~252cr of gNexium to US (from Oct 21, 2015 to Nov 12, 2015)
Attached file has the related raw data to chew.
Esomeprazole Magnesium v1.xlsx (30.9 KB)
Note: In addition to Torrent, DRL and Hetero, the above numbers would include Cipla’s gNexium supply to Teva.
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It is indeed an interesting development. This is why a thorough risk management is important from every business unit perspective.
Actually market was expecting much more from Torrent @ to this report by idirect http://content.icicidirect.com/mailimages/IDirect_HealthCheck_Nov15.pdf
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Thanks saji for the report.
Off topic. Does anybody know on what basis do these brokerage houses arrive at the estimate numbers?. If you look at the various numbers like sales, ebidta, profit etc they values like 2259.7 , 493.3 etc. Why not a round off value like 2260 or 500 etc?