Mar 14, 2000|
Competition hots up in Hep–B vaccine segment
Wockhardt has launched a Hepatitis B vaccine Biovac B. This is in collaboration with a German company Rhein Biotech GmbH.
Wockhardt ranks fifth in terms of domestic sales with five brands among the top 250 in India. The company has among the top three R & D facilities in the country. It hived off the real estate property as well as its intravenous fluids business to its group company in the current year. Wockhardt had acquired Merind and Wallis last year.
So far the Hepatitis B segment has been dominated by SmithKline Pharma’s Engerix–B. This product has grown at an average of over 50% per year over the last three year’s. Although companies like Bharat Serum and Shanta Biotech have successful products they have not been as successful in the marketing as SmithKline. With the entry of Wockhardt, the competition in the segment is bound to hot up.
First, since Wockhardt has in place a good marketing infrastructure in place. The company has 21 clearing and forwarding agents, 2500 stockists for distribution, 1200 medical representatives which would help it market its vaccine effectively.
Second, unlike SmithKline which imports the dosages from its parent’s Belgium plant, Wockhardt manufactures the vaccine in India which would not only enable it to price its vaccine a shade below those of Engerix–B but also enjoy higher margins. This is because last year the government imposed a 38.5% import duty on vaccines, which affected SmithKline’s margins since it did not raise its vaccine prices. The company is unlikely to raise prices this year too and hence the erosion in margins is expected to continue.
Analysts have flagged Wockhardt as a buy since it has a strong product portfolio. The company derives around 30% from products introduced in the last five year’s and only 12% of its revenues accrue from products under price control.
More Views on News
Aug 14, 2017
A challenging environment and one-time expense pushes Sun Pharma into a loss in the first quarter.
Aug 14, 2017
GST impact coupled with price erosion in US leads to lower profits for the quarter.
Aug 8, 2017
Profits plunge due to higher raw material costs.
Jun 16, 2017
Here's what you can expect from The 5 Minute Wrapup in the coming months and years.
Jun 23, 2017
Net Profit lower due to exceptional items in the previous year.
More Views on News
Aug 17, 2017
A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.
Aug 21, 2017
Most Indians who cannot find jobs, look at becoming self-employed.
Aug 16, 2017
The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?
Aug 16, 2017
Ensure your financial Independence, and pledge to start the journey towards financial freedom today!
Aug 22, 2017
Post demonetisation, a cut in bank savings deposits rates was in the offing.
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407