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MNC Pharma: Where is it headed?

Jun 12, 2007

In terms of both the financial performance and the stock price movement, the MNC pharma companies, as compared to their domestic counterparts, seem to have gone on the backfoot. In this article, we shall analyse the reason for the same and what the future holds for these companies going forward.

Pharma: Will ghosts of 2005 return?

Dec 27, 2005

The Sensex in the past one year scaled new peaks and touched the coveted 9,000 mark. The BSE Healthcare index, in the meanwhile, failed to set the pulse racing. Nothing highlights this fact more clearly than the following statistic - In the past one year, while the Sensex zoomed and notched up 44% gains, the healthcare index has significantly under performed the benchmark managing to garner a mere 2% gains!

MNC Pharma: And the performers are...

Sep 6, 2005

The first half of the year has gone by and MNC pharma companies, which largely follow a calendar year, have managed to stage a comeback after the difficult first quarter (March 2005 ending), which was plagued by VAT related issues. In this article, we compare the 1HFY06 performance of the 4 MNC pharma companies under our research coverage viz., Pfizer, Abbott India (both November ending), Glaxo and Aventis (both December ending).

Aventis: Geared for the patent regime

Jun 17, 2005

With the advent of the patent regime in India, MNC pharma companies stand to gain a lot in terms of new product launches and consequently increased revenues. Being an MNC, Aventis is all set to exploit this opportunity. In this article, we take a look at how the company has performed over the years and what lies ahead.

Patent ordinance: The finer nuances

Dec 29, 2004

On December 27, 2004, The Government of India issued an ordinance relating to patents (third) amendment act. With this, India has kept its promise to become TRIPS compliant by end of this year. Let’s look at the major provisions that will have lasting effect on the industry, both domestic and exports. Let’s look at the most important features of the ordinance:

Pharma stocks: Running ahead of times

Dec 24, 2004

The markets have risen to their all time highs, and pharma is one of the sectors that have outperformed this broad rally, although marginally. In light of the structural changes taking place within the sector, both on the international and domestic fronts, increasing investor interest has been witnessed over the past few months.

Pharma: Wait and see!

Dec 13, 2004

The new patent regime is closing in the Indian pharmaceutical sector in few days from now. From January 2005, it will become applicable and Indian manufacturers will not be able to bring out generic version of patented drugs. Despite the ongoing debate concerning the implications of the patent regime, we believe that such a regime is here to stay. But it may be a refined one.

MNC pharma: Seek opportunity!

Nov 24, 2004

According to newspaper reports, a leading consultancy firm has estimated that the Indian pharmaceutical sector will become a US$ 25 bn industry by the year 2012, up from its current levels of about US$ 6.5 bn. According to the report, while the market in India will expand, further growth will be driven by exports of pharmaceutical products. While Indian companies are likely to grab this opportunity with both the hands, in this article we have tried to understand how MNC pharma companies are pois

Sun Pharma: Caraco effect visible

Nov 4, 2004

Sun Pharmaceutical declared its 2QFY05 results recently. The topline of the company grew by 10% while the growth in bottomline was 29% on a YoY basis. The improvement in bottomline was mainly due to a huge 490 basis points improvement in its operating profit margin in 2QFY05, on the back of savings made in raw material costs and other expenditure.

Novartis: Growth not visible

Oct 30, 2004

MNC pharma company, Novartis India, declared its 2QFY05 and 1HFY05 results yesterday. The topline of the company has registered a marginal growth in the quarter. However, the bottomline saw a decline of 18% owing to lower other income and higher tax expenses on a YoY basis. The poor performance of the bottomline is despite an operating margin expansion of 780 basis points.

Glaxo: Other income fillip

Oct 29, 2004

MNC pharma major, Glaxo (GSK Pharma), reported 20% growth in revenues in 3QCY04. Consequently, the company finished the nine month period ended September 2004 with revenue growth of nearly 14% YoY. The bottomline of the company grew by almost three fold on back of extraordinary income from sale of its Worli (Mumbai) property. The operating margin also saw an expansion of nearly 7%.

Nicholas Piramal: Roche blues for now

Oct 25, 2004

Domestic pharma major, Nicholas Piramal, has declared its 2QFY05 and 1HFY05 results. In the quarter, the topline of the company has grown by 2%, while the net profit increased by 7% led by expansion of operating margin, which stood at 21.9%. In the first half of current financial year, the net profit has increased by 25.1%, while topline is down marginally.

Aventis: Looking healthier

Oct 23, 2004

MNC pharma major Aventis, recently announced its 3QCY04 and 9mCY04 results. During 3QCY04, the topline grew by 13.1% YoY while the bottomline grew by 63% YoY. For the first nine months of the year, while the topline growth was 11.2%, the bottomline grew by an even more impressive 73.7% as compared to same period last year. Cost cutting measures has seen the company improving its operating margins by an astonishing 1120 basis points during the third quarter.

Aventis Pharma 2QFY05 net up 63% YoY

Oct 21, 2004

MNC pharma major Aventis, declared its 3QCY04 and 9mCY04 results. In 3QCY04, the topline grew by 13.1% while the bottomline grew by 63%. For the first nine months of the year the topline growth was 11.2% and the bottomline grew by 73.7%. The operating margins o the company has expanded by almost 11% owing to the cost cutting drive.

Pharma: Transition to product patent

Oct 6, 2004

January 1, 2005 is the day when Indian pharmaceutical sector will take its first step towards the fundamental shift from an unregulated market to a regulated market (though not as stringent as US or some European countries). Till date, government price controls and patent laws have determined the structure of the domestic pharmaceutical market. Although, the industry was in tight controls it still managed to grow at a rapid pace.

Abbott: Other income fillip

Oct 1, 2004

Abbott India has declared its 3QFY05 results (November year ending). The net profit of the company has grown by 120 % in the August quarter, other income having provided a large chunk of this growth. The topline growth has however been marginal. Operating margins too have been disappointing and have declined by 310 basis point to 22% from 25% on a YoY basis. For the nine-month period however the picture has been encouraging as far as topline is concerned, with a growth of 9%. The operating margi

Pfizer: On the course

Sep 27, 2004

Pfizer India has declared its 3QFY05 results (November year ending). The net profit of the company has grown by 15 % in the August quarter, although this has to be viewed in the context of a lacklustre performance last year. The operating margins have improved by 110 basis points to 12.7% compared to 11.6% in the same quarter last year. The net profit margin has also improved by 150 basis points to 10.6%. The operating margin for 9mFY05 was also better, with an improvement of 420 basis points to

Pfizer: Coming back to health

Sep 21, 2004

Pfizer India is one of the leading MNC pharma companies operating in India. It is a 40% subsidiary of the world's largest pharma company Pfizer Inc, which had sales of US$ 40 bn in 2003. It is a leading company in the Indian markets with key brands such as Corex (a cough syrup) and Becosules (a B-complex supplement), the two being brands with a revenue of over Rs 1 bn each. Most of the company’s products are OTC (over the counter) products with strong brand equity.

MNC pharma: The opportunity

Sep 14, 2004

There are many MNC pharma companies operating in India. While some of them have really entrenched themselves in the country, others are involved more in being a trading entity. Companies such as Aventis, Glaxo and Pfizer have full fledged operations in India, others like Abbott, Sanofi, Novartis are more or less trading companies. This is one of the major criteria that also determine the depth of these companies in the Indian market place. In this article, we review the MNC companies that are pr

Performance Summary: Pharma sector

Aug 11, 2004

Pharma sector is generally believed to be a defensive sector, as factors that impact demand and supply for this sector are to an extent, different from factors that impact economic growth. This is not to say that the sector is not impacted by economic performance at all. This, to some extent, is true and is apparent from the graph below. While the BSE Sensex has declined by 9% since April 2004, the pharma index is down only 4% in the same period.


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