Current Market Cap: 2164Cr
Strides recently distributed 88% of cash available with Agila sales to the shareholders. There is about $75Mn held back as growth capital. In 2014 they are expected to get back $290 Mn and additional $100 Mn will remain in tax escrow account until their business tax filing are closed in different countries.Company plan to return back these receivables to share holders.
If they are successful in getting this amount, shareholder may expect to get ~200/- per share special dividend.
Remaining payout from Agila sale :~$290 Mn - $50 Mn (tax out go) expected to be available in 2014. +$100 Mnover 4 years
Regulatory contingent of $250 million
(Related to the warning letter situation forone of the Agila facilities. - Outlook- available in full in 2H 2014)
Regulatory escrow -$40 million
(that we believe will not be usedbecause in the $150 million we have already budgeted cost of remediation but for any reasonthose costs are not contained within that estimate and the resolution takes much longer, thenthere is a possibility that the $40 million in escrow could also be used up. Outlook - available in full in 2014)
T****ax escrow)- $100 million -which will be released in four years, upon successful closure of tax filing in different countries.
Growth capital)- $75 million
Tax liability - $50 Million
Management has record of successfully building and growing brands. As of now they have legacy pharma and incumbent Biotech business with them.
Pharma business /Agila Biotech
** 2011 2012 2013E**
Revenue 716 926 1000
EBITDA 152 103 200*
*** Licensing Income 83Cr**
FUTURE GROWTH AVENUES
Agila Biotech || Pharma Generics
Africa Business || India Brands
- Core Pharma will continue to register products in the US market
- Drive growth in Africa through the launch of new products, expansion into untappedmarkets and possibly set up local manufacturing
- Expand the business of branded drugs in India with niche branded pharmaceutical products
- Enhance focus on the biologic space; we have planned a state-of-the-art facility in Malaysia, backed by strong technical expertise
- Develop an internal pipeline of biosimilars, supported by an R&D facility in Bangalore,which is capable of handling high-end research
commitment to compete hard globally and of affordable medical care and consistent innovation rages across the world, we try to align both ends of the spectrum by focusing