Progress in vaccine for HIV
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Development and commercialization of vaccines for HIV is a signifigant development wrt Laurus’s current business model.
Can anyone throw some more light on the progress made in the field of HIV vaccines…like on the expected timelines, cost etc.
We all know about the great things that Laurus Labs is upto. However…this is one area ( key risk ) where most of us ( I assume ) have not paid due attention to.
It would be great if someone can educate us.
Thanks in advance.
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That could be the reason why Laurus is gradually reducing the ARV api since last 5 yrs and diversifying in to other verticals.In 2016 their ARV api was 82% of sales which is now 38% until Q3 21. With the acquisition of Biological capability through Richcore I wouldn’t be surprised if they acquire capability and go for a contract mfr of vaccines. I feel the management is fully competent to grow their business in other verticals to make up for any drop in arv sales in the coming years. Unlike covid vaccines none of the vaccines ever was commercialized within such a short span of time without adequate safety study.
Disc. Above all my views, i may be wrong and biased as I am invested.
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LAURUS LABS
today ( 12.03.2021 ) Promoter Released the pledge shares completely.
https://www.bseindia.com/corporates/sastpledge_new.html?scripcd=540222
Multiple disclosures on pledge release
Number of shares released from Pledge by Promoters (Mr & Ms Chava and Laxmana Rao) : 2.43 Crores (24325000) Mr.chava and Mrs.chava released total share pledge worth of 762 crores.
Now laurus lab becomes becomes zero pledge.
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As expected dr chava and his wife released entire pledge on their holdings. They could have allotted warrants for themselves in 2018, but they didn’t take that route. They didn’t want to steal from the other shareholders when they are perfectly capable to do so. If this is not the gold standard of the corporate governance then I don’t know what it is. I request the naysayers to present solid reasons not to believe the promoters with facts than just throwing words like bogus labs and other things. Eminent investors like shyam shekar throws words on api stocks every now and then without presenting any reason not to believe the api story. And many retailers believe their words at the face value because of their reputation as investors. If u can’t do good to anyone atleast try to not to do bad things. The famed investors won’t share their stock picks with investors but when retailers believe in a person like dr chava they try to create doubts within minds of retailers. I’m not trying to say api story will be a success but I’m asking the so called eminent investors like shaym shekar to reason their hatred towards laurus labs. As far as I can understand its only due to the reason that they missed the bus and the most laughed about retail investors made good money in stocks like laurus , granules and other api stories.
I request all the retailers to take their due diligence before investing in laurus labs as the pharma sector prone to disruption and constant threat of us fda.
Disclosure: invested since August 2020.
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This topic is temporarily closed for at least 4 hours due to a large number of community flags.
This topic was automatically opened after 4 hours.
https://twitter.com/CNBCTV18News/status/1372908082481664001?s=20
Question : What plans do you have for the next reckoning of Laurus labs ?
Response :
- This year we used the challenges (covid ) to win the trust of our colleagues (not staff) and their families
- Won the trust of our partners by supplying the medicines what we produce on time
- Won the trust of our vendors by buying enough materials and also paying them on time
- We gave very good returns to our share holders
- This year we wish to win the trust of our stake holders
- Make the company a sustainable organization to withstand challenges like this (Covid)
The more you listen to Mr Chava the more you form the conviction (Don’t know falling in love to the words of promoters is good or bad but we can negate that feeling by checking walking the talk )
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LAURUS LABS
One of the leading manufacturers in the pharmaceutical industry,
Laurus Labs is the Most Promising Company of the year at the ‘India Business Leader Awards’ presented by Standard Chartered.
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Rating upgrade by CARE
Pursuant to the Regulation 30 of SEBl (LODR) Regulations, 2015, we hereby inform you that
the Company on March 23, 2021 has received the credit rating letter from M/s. CARE Ratings
Ltd. (Credit Rating Agency) stating the revision in the credit rating of the Company to “CARE
AA-; Positive” (Double A Minus, Outlook: Positive)" from “CARE AA-; Stable” (Double
A Minus, Outlook: Stable)" for its long term banking facilities, (the relevant communication
of the Rating Agency is also enclosed for reference).
We further inform that this revised rating is the up gradation of the “Rating Outlook” from
’Stable’ to ‘Positive’.
Please find more details here https://www.bseindia.com/xml-data/corpfiling/AttachLive/051c727b-d4c7-456a-8249-22479f0d0a35.pdf
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Capacity Expansion – To cater to future demands
Richcore will be renamed to Laurus Bio shortly. Laurus bio will able to cater the demands of food & fermentation and synergies are exciting for the same. With a vision of creating long term sustainable growth company continues to undertake major Capex program across all divisions.
Total Revenue from Operations came in at ₹ 1,288 crs, showcasing strong growth of 76% for the quarter and ₹ 3,402 crs for 9M FY21 growing by 71%. EBITDA Margins remained steady at 34% owing to better operating leverage and product mix.
PAT stood at ₹ 273 crs for the quarter, showcasing a robust growth of 274%. ROCE on an annualized basis has improved to 40%. The company continues to have a healthy cash position with ~ 600 crs of headroom available in the form of unutilized bank limits. The company continues to undertake larger CAPEX for all the divisions and initiate new manufacturing units on a greenfield basis.
Laurus Bio Pvt. Ltd. – Briefing
- Laurus Bio has 2 manufacturing facilities. The first one has a fermentation capacity of 10,750 Lts while the second one has 180,000 Lts (will be available by March 2021).
- Laurus Bio/Richcore is an emerging biotech company. Fast Growing Research Driven Bio - Manufacturing Company Recombinant products - animal origin free products for safer, viral free biomanufacturing.
- Precision Fermentation capabilities -scale-up expertise and large scale manufacturing capabilities.
- Strategic global partnerships for the commercialization of products.
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Hi All,
Laurus Bio was supposed to open the big facility in march but there is no intimation from company so far.
Anyone has amy info on this or do some scuttlebutt at ground level?
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[quote=“mrai74, post:350, topic:19377”]
Q3 SHP analysis
Interesting exchange of hands in Q4
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Initiating Coverage (Antique)
Laurus Labs - Ordinary Business, Extraordinary Margins
Laurus Labs is a leading research driven manufacturing Company. With process chemistry and R&D as its core Laurus has successfully gained leadership in various (Antiretroviral) ARV APIs and formulations in Low Middle Income Countries (LMIC). The company has also made large strides into being a robust formulations player, with the formulations business growing from INR 52 mn in FY18 to INR 8,253 mn in FY20. We believe the Laurus’ growth story has entered its new phase on the back of sustainably higher formulations business and custom synthesis business being on the cusp of major growth phase.
With an aggressive CAPEX program of close to 65% of its FY 20 gross block, the company can nearly double its earnings (at a high base of FY21) by FY 24. Moreover we also expect the formulations business from developed region to grow faster from FY23.
We initiate coverage with a Buy rating and a target price of INR 574, 18x P/E FY23 earnings.
Valuations
We expect Laurus to report 28% FY 21 - FY 24 EPS CAGR, led by sustained growth in existing businesses and ramp-up in new ventures (Laurus Bio). We initiate coverage with a Buy rating and a target price of INR 574, at 18x P/E on FY23 earnings.
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outlook has been upgraded. rating remains the same.
Mostly post outlook upgrade the ratings do get upgraded in the next year or so, but still its not a rating upgrade.
The recent development in the Vaccine of HIV can be a major event for all the companies engaged in HIV treatments. The new approach which is being used aims in “production of broadly neutralizing antibodies, or bnAbs” The trial 1 is successful & this approach can be used in development of other vaccines as well for influenza virus, dengue virus, Zika virus, hepatitis C viruses and the malaria parasite. Although developing this vaccine may still take years if successful in future trials, it will definitely affect the Indian pharma industry in a big way.
I am sure ARV API will be a very small part of the Laurus portfolio of products by the time this vaccine gets commercialized and hope that Laurus will also have found a way to get a pie of that, given they already one of the major players in HIV treatment.
This article has a succinct coverage of the vaccine under development and the potential.
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The vaccine is in Phase 1. By the time Phase 3 will be done (3-5 years min), Laurus will have significantly lower revenue from ARV.
Dis: Invested
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One thing is certain that Covid and the RNA tech being commercialized has altered the vaccine industry in a big way. Different diseases might see their treatment/complete cure through them. Covid will also not completely disappear and will need booster doses against different mutations every year. The next 5-7 years will see massive earning upgrades amongst those who have already invested heavily into Bio-Tech and vaccine manufacturing facilities.
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Present HIV phase 1 Trial is for prophylactic use of multi-step vaccinations program for the healthy individuals, it is not for the treatment of already HIV positive patients. It will be used as a prophylactic agent in high risk population/ health care workers or any other volunteers. And by the time it comes to practical use, it will be minimum of 3-5 years. It won’t be having any major effect on the companies producing HIV API/ Formulations for treatment of existing or newly turned HIV positive patients. Laurus lab is already diversifying to reduce the dependency. Then again Laurus -Bio will be a new arena, capacity of which they are planning to increase by 5 times, there will be an opportunity for them to enter this exciting field of new generations of Vaccine production.
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Just make sure that the report can be posted publicly…else valuepickr will get dinged.
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