SUGAL SHARE4GAINS

An equity research newsletter

 

                                    Â Â Â Â Â Â Â Â Â Â Â Â  Reg. No.: TNENG/05036

 

 

The Pharmaceutical Industry is witnessing tremendous growth and is one of the fastest growing sectors in India. The market for pharmaceuticals in India is expected to witness strong growth during 2008–2023. The Industry's growth rate is likely to touch 19 per cent from the current 13 per cent, according to a projection released by the Confederation of Indian Industries (CII), on September 1, 2008. The Indian pharmaceutical industry is projected to grow to US$ 25 billion by 2010 whereas the domestic market is likely to more than triple to US$ 20 billion by 2015 from the current US$ 6 billion to become one of the leading pharmaceutical markets in the next decade.

 

The Indian pharma industry will see tremendous growth in the coming years as consumer spending on healthcare is increasingly on the rise in India. Consumer spending on healthcare increased from 4 per cent of the Gross Domestic Product (GDP) in 1995 to 7 per cent in 2007. That number is expected to rise to 13 per cent of GDP by 2015. India is emerging as a competitive player in manufacturing Active Pharmaceutical Ingredients (APIs), generic drugs, intermediates for drug makers, and also new formulations; apart from becoming a major outsourcing hub. Moreover, in addition to marketing pharmaceuticals, Indian firms are also manufacturing for foreign clients as outsourcing to India saves costs and precious developmental time.

 

POTENTIAL

·         India is an attractive global sourcing destination for pharmaceuticals:

o        Availability of low-cost, high-quality production and regulatory compliance.

o        Large and growing US FDA-approved plant capacity.

o        Synthetic chemistry talent for early stage compound development.

o        Low cost of research and world-class testing facilities.

o        Cost of a research scientist in India is only about 1/6th to 1/4th of that in USA

For Sample copy write to: Mahesh B Chandak, 28, Barnaby Road, Kilpauk, Chennai – 10

Email: research@sugalshare.com

 

 

 

• Major opportunities in pharmaceuticals are in the following areas:
• Marketing of Patented Drugs
• Contract Research and Manufacturing (CRAM)
• IT-enabled services including clinical/market data analysis
• Clinical trials: revenues to grow from US$70 million (2002) to US$1-1.5 billion by 2010 driven by a 60% cost advantage and large gene pool for trials.

 

 

JUPITER BIOSCIENCE LTD

 

Jupiter Bioscience Ltd incorporated in the year 1985, has business activities focused on peptides, advanced organic chemistry, chiral chemistry and biotechnology. The company has business operations along the product groups of peptide reagents and protected amino acids, drug intermediates, and specialty and fine chemicals. It manufactures 14 categories of peptide reagents, 6 variety of coupling reagents and over 100 varieties of protected amino acids.

BSE Code	524826
Face Value	Rs. 10
Book Value	Rs. 180.06
EPS (TTM basis)	Rs. 19.87
Market Price	Rs. 38.35 (30/01/09)
P/E	1.93
Market Cap.	61.54 crores
Promoters Stake	17.88%
Institutional holding	31.90%
52 week high/low	Rs. 193.5 / 35

The Company has four manufacturing facilities located at Bidar in Karnataka; Cheriyal, Gaddapotharam and Cherlapally in Andhra Pradesh. The R&D division is located in Cherlapally. The company caters to pharmaceutical companies manufacturing peptide therapeutics and peptide intermediates, biotechnology companies, research-based entities working on new peptide-based therapeutics for cosmetic manufacturers, and chemical manufacturing companies. Apart from manufacturing products, the company provides services such as custom synthesis, process development and scale-up, and contract R&D. It has a strategic alliance with the Clariant group, a global leader in the field of specialty chemicals, for the development of peptides.

Sven Genetech and Jupiter Bioscience Inc. are 100% subsidiaries of the Company. Sven Genetech conducts synthesis of peptides including side chain protected amino acids and unnatural amino acids and manufactures nutraceuticals and cosmoceuticals. Jupiter Bioscience Inc, incorporated in USA, caters to the end user market in peptides and peptide components in USA, Europe, Canada and Japan.

 

FINANCIAL INFORMATION:

(Rs. in crores)

Particulars	March 05	March 06	March 07	March 08	HY FY08@	HY FY09@
Total Revenue	71.09	80.18	104.11	131.07	52.16	60.37
PBDIT	30.70	35.29	45.45	59.67	26.17	31.69
Interest	3.14	4.16	6.81	10.97	3.53	7.24
Depreciation	7.56	9.20	13.17	17.33	7.39	8.00
Tax	5.85	4.79	6.66	4.33	2.29	2.16
PAT	14.15	17.14	18.81	27.04	12.96	14.29
Dividend (%)