Hi ,
In the above picture, any idea why the dosage count in panacea is among the lowest? Is it due to the order size received , or is it due to their own capacity issues?I would have thought , Panacea would be a clear winner, since it already has an existing setup and expertise for vaccine production ? Any thoughts would be much appreciated…
Thank you.
I think these are on the basis or orders received only. Panacea is also in advanced stages of talks with Bharat Biotech for manufacturing Covaxin. I heard Sambit Patra name them in a recent television interview.
That said, it is not that Stelis and the others don’t have a setup for vaccine production at scale. The fact that they got such large orders shows that they have the technical and manufacturing capabilities. It’s just that they haven’t done it at commercial scale yet. Maybe that’s why the market is not betting on Stelis the way it is betting on Panacea.
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All the said companies who are aiming to do is fill and finish, it is a very very complicated process, I don’t think none of these companies other than Gland has the prior experience of mass production at this scale ( correct me if I am wrong )
A very good read
Here is the layman understanding
Innovator shares cellline (this is the kind of original formula, stored and shipped in liquid Nitrogen ) with the manufacturer along with other raw materials
Manufacturers then use this cell and then develop Master cell bank from the original cellline (They grow more cells in the lab from these original cells, this is time taking process one can’t grow cells overnight )
Then QC check (This is the critical part )
Then use these cells to produce vials
Production also cannot happen in large scale on day one, they start with small quantities and then slowly they have to ramp up.
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I am expecting that revenue & profit over a period of 1-2 years will allow Panacea to come out of all pledging/debt issues. Another positive, Panacea has very good distribution as it is already into Vaccine even before Covid. I read that Panacea might have tie-up with Bharat Biotech for Covaxin. However, Panacea has capability to manufacture only the type of Sputnic/Covaxin vaccine.
Coming to Stelis, there is not much info available other than press-release. In general, it takes good amount of time for tech-transfer before starting manufacturing. I am not sure in what stage, Stelis is with respect to vaccine manufacturing. One more point to note that Stelis has technical capability to manufacture mRNA vaccine.
Disclosure: Invested in Panacea, Strides from lower levels
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Stelis bags more investors including Prof. Mankekar- b14c91a6-6966-43e9-9783-50c7f7c49c90.pdf (271.8 KB)
Looking forward to shareholders here benefitting from demerger though it might take its sweet time.
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So now strides hold 37% stake in stelis , what would be possible swap ratio on de-merger ( rough estimate based on past experience as there have been demerger in past) , is it straightaway on the % of ownership ?
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I think Prof. Manekar is betting on the Jockey (Mr. Arunkumar ) he recently invested in Solara (bought 2.3 stake ) , Solara was demerger from Strides
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TLC and Strides partner to launch Liposomal Amphotericin B in India
TLC receives approval from Central Drugs Standard Control Organization of India to launch
Amphotericin B Liposome for Injection 50mg
• Product to be manufactured in Taiwan, imported by Stelis Biopharma, and distributed in India
by Strides Pharma Science Limited
• Launch to help alleviate the Liposomal Amphotericin B shortage arising due to recent surge in
COVID‐19 associated mucormycosis cases
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Strides reports strong FY21 performance with 29% revenue and
67% EBITDA growth
Rs 2.50 dividend
In the presentation they talk about value unlocking via demerger… Is there any way to estimate that ?
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I have one question. as far as i understand as per the last concall (Q3’21). the company will take the injectables business private. Strides had a call option on the injectable business but has forgone that right. is my understanding correct or am i missing something?
Highlights from the management commentary
With US sales of USD215m in FY21, STRIDES remains confident of achieving annual sales of USD400m over the next three years. There could be near- term hiccups on account of the ongoing pandemic.
Stelis Biopharma (Stelis) has started validation of batches, which should conclude by Jun’21. It expects to launch the Sputnik V vaccine by Oct’21. Typically the validation-to-commercial batch scale is 1:10x.
The funds raised at the Stelis level (USD125m) would be utilized for last mile capex related to the CDMO business, including setting up a 6KL mammalian block, and ramping up of process development and other technical capabilities. The usage of funds would be completed in FY22.
STR holds 33% stake in Stelis post completion of the Series C funding.
It witnessed a considerable QoQ increase in opex (INR1.3b) in 4QFY21 due to rise in freight cost and supply disruption on account of COVID-19.
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They have brought VC and promoter/promotor related Investor for Series-B,C Funding there by reduced Strides stake in Stelis which is not good for existing Investors as it will reduce Strides stake in Stelis as 33%.
May be for 3-shares of Strides ,we will get 1-share in Stelis.
Ideally they should have given option for existing shareholders like rights issue So that existing shareholders would have benefitted…this is my opinion, others please comment on this de-merger scheme.
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Can somebody help me understand this validation process, and the meaning of validation-to-commercial scale ratio?
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Total Value of Strides including 33% of Stelis is 7k crs.
Total value of Setlis is 2.5k crs means strides holds 800crs of Stelis.
That roughly means that 33% of Strides value is derived from Stelis. Now if the holding company discount is 0 (you can do a various scenario like 10/20/30% holding company discount) then the value of Stelis in Strides shares is around 11-12%. Meaning a value of demerged entity should be around 85-95/share.
**** Assuming the demerger was to take place at today’s price.
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Anyone of this thread has the information about the demerger date between stride & stelis.
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An excellent in-depth presentation to understand in detail.
Two big opportunities
-
Stelis Sodium Hyaluronate: First non-avian, non-cross-linked, high molecular weight low-volume single injection for knee osteoarthritis ( Market Size estimated over $1.9 billion globally)
-
Rh-Teriparatide: Biosimilar to Forteo®/ Forsteo® (The market is estimated at ~$2.5B. • Top 4 companies account for 65% of the market- Sanofi Synvisc(23%),Kaken Seiyaku Artz(16%), Ferring’s Euflexxa (16%), J&J’s Monovisc(9%)
Technology platforms that they are using are cutting edge technologies available in the industry
"For mammalian cell culture manufacturing, Stelis adopts the latest single-use technology of Merck-Millipore for both upstream and downstream operations. This allows greater production flexibility and reduces likelihood of cross-contamination, thereby improving compliance and facilitating quick changeovers. Starting with 2 bioreactor train line-ups from 50l, 200l and 2,000l plans are in place to add 2 more lines.
The facility is also capable of handling batch, fed-batch and perfusion fermentation with pre and post viral segregation single-use flow path chromatography system (Merck Millipore); viral-filtration, ultra-filtration and dia-filtration.
"
stelis_biosource_corporate.pdf (1.7 MB) shorter version of their capabilities
Another Biotech company (recently listed on LSE), Arecor , they are also into Diabetes related products , read ipo document here (Skip to Page 20 )
Ultra-rapid acting insulin (AT247)
Ultra-concentrated rapid acting insulin (AT278)
A stable co-formulation of pramlintide and insulin (AT299)
A good presentation that also highlights the technology platforms in drug discoveries and enhancements to the current drugs.
In my opinion, unlike traditional (non bio) medicine, the aim of this particular company is build the product and then earn money in the form of royalties (by tech transfer, I think this is the way going forward for these big innovator biologic companies, it is not easy to sell in every country instead share the technical know how and earn money in the form of royalties, current Sputnik Vaccine falls under this category IMHO )
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“Ennaid Therapeutics partners exclusively with Strides to manufacture
life-saving oral Covid-19 Tablet”
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Looks like some panic sale / offloading is going on - today someone sold in bulk so the stock hit almost 10% low during the opening. Many insiders are selling - a designated person Sanjay Singh sold within weeks of ESOP acquisition. Why such an urgency? A quick Google search shows that he is the Chief Human Resources Officer at Strides.
Disclosure: I have a tracking position. View are personal, not a buy/sell recommendation.
Edit:
As per the latest filing, Strides has appointed a new Chief Human Resource Officer. That might explain the Mareket Sale by Sanjay Singh.
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