Four-S Fortnightly PharmaHealth Track 9th Jan - 21st Jan 2012

7/30/2019 Four-S Fortnightly PharmaHealth Track 9th Jan - 21st Jan 2012

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FOUR-S PharmaHealth T

Research Desk

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Funds. For further information, please contactSeema Shukla [email protected] or reach us as http://www.four-s.com

Content

Private Equity 2

Mergers & Acquisitions 3

News Update 4

Regulatory Developments 5

Upcoming Events 6

Stock Market Update 7

Peer Benchmarking 7

About Four-S Services 9

Strides Arcolab may sell Australian unit

Drugmaker Strides Arcolab Ltd is considering the sale of its

Australian branded-generics unit, Ascent Pharmahealth. U.S.

investment bank Jefferies and Co is advising Strides Arcolabon a divestment plan that may also include other businesses

such as softgel and anti-retro viral drug manufacturing, as

the drugmaker wants to focus on specialty injectables.

Ascent Pharmahealth is one of the largest branded generic

drugmakers in Australia, with 13 percent market share. It

also has a significant presence in Singapore, Thailand and

Vietnam. The business had sales of $140 million in 2010

Strides Arcolab is a global pharmaceutical company

headquartered in Bangalore that develops a wide range of

IP-led niche pharmaceutical products with an emphasis on

sterile injectable. The company has 14 manufacturing

facilities across 6 countries with presence in more than 75countries in developed and emerging markets.

9thJan21

thJan

Newsletter on Indian Healthcare Industry

PharmaHealth TRACK

Top Story

About Four-S ServicesFour-S Services is India's leading provider of Research, Financial Consulting and Investment Banking services with offices in Gurgaon, Mumbai and

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Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects f

prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 P

Funds. For further information, please contactSeema Shukla [email protected] or reach us as http://www.four-s.com

ate Investor(s) Target Stake (%) Amount ($mn) Business Sta

7-Jan-2011 Zephyr Peacock IndiaAizant Drug Research

Solutions Ltd

NA5.0 CRO Ear

8-Jan-2011 Halcyon Capital AdvisorIntegrated Health &

Healthcare Services

NA44.2 Hospitals Buyo

8-Jan-2011Sequoia Capital, Elevar

EquityGlocal Healthcare Systems

NA3.3 Hospitals Ear

5-Apr-2011 Avigo Capital SRL 9.27 224 Diagnostics Grow

5-May-2011 Sabre Partners SRL 4 112 Diagnostics Grow

7-Jun-2011Aquarious India,

SeedFundVaatsalya NA 10 Hospitals Grow

0-Jun-2011Catamaran, Reliance VA,

Bluecross BlueShield VPWellspring Healthcare NA 4.6 Hospitals Grow

3-Jun-2011 HDFC PE Angels Health Pvt Ltd 12 0.6 Online Healthcare Ear

0-Aug-2011 Matrix Partners Kids Clinic NA 10Super specialty

hospital chainEar

8-Sep-2011 Sequoia Capital Moolchand Medcity NA 22.0 Hospitals Grow

0-Oct-2011Helion Ventures, Nexus

VenturesEye-Q NA NA Hospitals Grow

8-Nov-2011 Fidelity Growth Partners XCyton Diagnostics NA NA Diagnostics Grow

2-Jan-2012 NEA, DaVita Inc NephroLife Care NA 25.0 Hospitals Gro

1-Jan-2012Sequoia Capital,

Omidyar NetworkHealthkart.Com NA 5.1 Health Services Ea

8-Jan-2012 Olympus Capital DM Healthcare NA 100.0 Hospitals Gro

0-Jan-2012 Songs Investments Be Well Hospitals NA NA Hospitals Gro

Four-S Indian PE Directory 2010 A Guide to choosing private equity partners

Detailed listing of ~330 Active PE/VC Investors in India - PE/VC players that have invested in the past 3 years.

A first-of-its-kind, the directory offers DealHistory in India for individual investor.Management, investment profile and Contact details.

User-friendly Spreadsheet Format.

It comes from Four-S Services, the most trusted deal information bank in India.

nvestment Activity last 1 year..

Source: Four-S Database


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FOUR-S PharmaHealth Trac

Research Desk

Four-S Services is India's leading provider ofhigh-end research, financial consulting and Investment banking services. We have executed projects

for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias

Top 5 PE Funds. For further information, please contactSeema Shukla [email protected] or reach us as http://www.four-s.com

Healthcare & Pharmaceutical Sector

1.) Pharmaceutical Sector

Aanjaneya Lifecare To Acquire Apex Drugs & Intermediates

Aanjaneya Lifecare may acquire Apex Drugs & Intermediates

Ltd. Aanjaneya is negotiating the terms for the acquisition of

100% assets and business of Apex. Apex Drugs was originally

incorporated as Agni Synthetics Pvt Ltd in the year 1989, the

name was changed Apex Drugs & Intermediates Ltd in 1995 and

subsequently controlling stake was acquired by Ghanshyam

Kurmi - current MD of Apex along with his associates.

Apex Drugs has production facilities in AP and manufactures

APIs for use in therpeutic segments including cardiovascular,

gastrointestinal, Antihistamine and non steroidal anti

inflammatory drugs. Apex supplies its APIs to a number of

domestic formulators and also sells its products to Spain, UAE,

Bangladesh, Argentina and Egypt.

Sanofi and 2 other venture capital firms launch Warp Drive

Bio

Sanofi is co-investing in Warp Drive Bio, an innovative start-up

biotechnology company, along with 2 venture capital firms,

Third Rock Ventures (TRV), a venture capital firm based in

Boston, Massachusetts, and Greylock Partners, a venture capital

firm based in Menlo Park, California.

Warp Drive Bio is an innovative biotechnology company,

focusing on proprietary genomic technology to discover drugs of

natural origin. The Warp Drive Bio team has been assembling anarray of technologies to create a platform for identifying

potential drug candidates using microbiology, next generation

sequencing, cutting-edge bioinformatics and chemo-informatics.

Clariant opens new crop protection laboratory in Thane

Clariant opens of a new crop protection laboratory for its

Industrial & Consumer Specialties (ICS) Business Unit at

Clariants Kolshet site in Thane, near Mumbai. Development

activities at the state of the art facility will focus on building a

unique portfolio of crop protection guideline formulations, using

Clariants ranges of emulsifiers, adjuvants, dispersing agents and

new innovative chemistries derived from renewable resources.

The emphasis will be on eco-friendly, active ingredient delivery

systems for emulsions, suspension concentrates (SC), water

dispersible granules (WDG), oil dispersions and encapsulated

technologies based on Clariants specialty performance

additives.

Dishman Pharma arm acquires Creapharm Parenterals

Dishman Pharmaceuticals' wholly Subsidiary company, nam

Carbogen Amcis AG., Switzerland has acquired Creapha

Parenterals, a subsidiary of France based Greapharm Group.

Creapharm Parenterals is a contract development amanufacturing organization specializing in liquid, semi-solid a

injectable aseptic dosage forms. As part of this acquisitio

Creapharm Parenterals has changed its name to CARBOG

AMCIS SAS.

Glenmark gets interim order against Napo Pharmaceutical

Glenmark Pharmaceuticals Ltd has received an interim ord

from a U.S. arbitration panel against U.S.-based Na

Pharmaceuticals Inc's termination of a collaboration pact for

HIV-associated diarrhoea drug. The pact, signed in July 200

had conferred exclusive rights to Glenmark to develocommercialize and distribute the drug, Crofelemer, in 1

countries.

This move provides interim relief to Glenmark, which recen

started trials of the drug to treat cases of adult acute diarrhoe

including cholera.

Serum Institute of India Ltd to sell off overseas buys

Serum Institute, the over ` 10bn privately held vaccine mak

has learned its lesson after picking up minority stakes

vacccine and pharma companies in India and abroad. It will st

to its core business, vaccines and immuno-biologicals, to emer

as a major global player in these businesses.

Company will soon offload our stakes in Lipoxen Plc of the

and Akorn Inc of the US since the objectives (in the sta

acquisition) were not achieved. Company will be happy to g

even since we invested ` 1bn in each of the two compani

Lipoxen is a bio-pharma company while Akorn is a maker

sterile speciality pharmaceuticals.

2.) Healthcare

St. Jude Medical launches Accent MRI Pacemaker in India

St. Jude Medical, a global medical device company, has launch

the Accent MRI pacemaker and Tendril MRI lead in India. T

new pacemaker and lead allow patients to undergo full-bo

high-resolution magnetic resonance imaging (MRI) scans

accommodate patients current and future medical needs. Ea

year approximately one million pacemakers are implant

worldwide, and it is estimated that up to 75 percent

News Update


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Research Desk




pacemaker patients could benefit from MRI scans during the

lifetime of their devices.

India attains milestone in polio eradication

India has touched a milestone of being polio free for one whole

year. The lone case of polio in 2011 was detected in a two yearold girl in Panchla block of Howrah, West Bengal, with the onset

of paralysis on 13th January 2011. Union Minister for Health and

Family Welfare, Ghulam Nabi Azad said we are excited and

hopeful, at the same time, vigilant and alert. He cautioned that

there is still no room for complacency and we need to ensure no

case of polio infection for the next three consecutive years for

India to celebrate eradication of poliomyelitis.

India has as yet spent more than ` 120bn on the Pulse Polio

Programme. India took a lead in introducing bivalent polio

vaccine (bOPV) in January 2010. Despite global shortage of both

bOPV and trivalent Polio vaccine, India tapped domestic market

for timely supply of vaccine to ensure pulse polio roundswithout interruptions. The prorgamme has been in the forefront

of adopting technological innovations.

Goodwill Hospital withdraws IPO on poor response

The initial public offer (IPO) of Goodwill Hospital and Research

Centre, who runs a multi-specialty hospital at Noida , has been

withdrawn by the promoters, presumably due to poor response

from the investors.

The ` 620mn IPO had opened for subscription on December 30,

2011 with an issue price of`

175-185 a share. The issue wasscheduled to close on 9 Jan and was heavily under-subscribed

till January 6, as per the NSE data. The bids for 22,015 shares

were received, against a total of 35,42,857 shares on offer.

Marketmen blamed poor market conditions behind the poor

show by the company's issue. SPA Merchant Bankers Ltd was

the book running lead manager to the issue.

Olympus Capital picks up stake in DM Healthcare for ` 5bn

Private equity firm Olympus CapitalAsia Investments (OCAI) has

acquired a minority stake in Dubai-based DM Healthcare for `

5bn.As a result of this investment, Olympus Capital will become

DM healthcare's largest external investor.Olympus Capital nominees will also join the Board of Directors

of DM Healthcare. DM Healthcare is a leading healthcare

services provider in the Gulf Cooperation Council countries, with

a rapidly expanding presence in India. The healthcare provider

operates hospitals, clinics and pharmacies in the UAE under

'Aster' and 'Medcare' brands and has presence in Qatar, Oman

and Saudi Arabia.

Opto Circuits subsidiary Criticare to supply monitori

systems to Russian hospitals

Opto Circuits subsidiary has received an order to supply patie

monitoring systems to major hospitals in Russia'sTyum

Oblast province. Criticare Systems Inc, a subsidiary of Op

Circuits, has signed a contract to supply vital signs monitors major hospitals in Tyumen Oblast, Russia's third-largest provin

Under the agreement developed by Criticare's Russi

distributor, Elmedica, the company will provide nGenuity patie

monitors, along with installation and training, to four hospita

including three regional hospitals

Life Healthcare inks pact with Max Healthcare for stake bu

South Africa-based Life Healthcare has signed agreements w

MaxHealthcare Institute Ltd (MHIL) and Max India Ltd to acqu

26 per cent stake in MHIL.

The agreements are for the subscription of 26 per cent of t

post-issue share capital of MHIL. The subscription price is

5165mn. Life Healthcare will provide pro-rata guarantees for

proportionate share of the debts of MHIL, currently guarante

by Max India. On Oct 11, 2011, Max India had announced t

deal to sell 26 per cent stake in its subsidiary, Max Healthca

Institute, for ` 5165mn to Life Healthcare.

Max Healthcare Institute plans to invest the ` 5165mn

expansion and reducing debt that is estimated to be about ` 9b

The firm plans to open four new super speciality hospitals

North India by the end of this year.

3.) Regulations/Legal

Glenmark Generics gets approval for 2 Oral Contraceptiv

product from USFDA

Glenmark Generics Inc., USA, a subsidiary of Glenmark Gener

Ltd, announced they have been granted final approval for tw

abbreviated new drug applications (ANDA), oral contracept

products Norethindrone and Ethinyl Estradiol a

Norethindrone and Ethinyl, by the United States Food and Dr

Administration. According to IMS Health for the 12 mon

period ending September 2011, these products achieved tomarket sales of approximately USD 96 million.

Novartis receives approval for Lucentis and launches Galv

in China

Novartis received regulatory approval in China from the Sta

Food and Drug Administration (SFDA) for Lucentis (ranibizuma

to treat wet (neovascular) age-related macular degenerati


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(AMD), and is launching Galvus (vildagliptin), an oral treatment

for patients with type 2 diabetes approved in China as an add-on

to metformin, the standard of care. In China, there are an

estimated 300,000 new wet AMD patients per year, and as

many as 75 million people have uncontrolled type 2 diabetes.

The number of people with diabetes in China has nearly

quadrupled in recent years, making it the country with thelargest number of adults with diabetes in the world.

Wockhardt will be manufacturing the nasal spray at its

facility in Morton Grove, Illinois, USA.

Wockhardt has received final approval from US FDA for

marketing 50 meg nasal spray of Fluticasone which is used in

treatment of allergic rhinitis. Fluticasone nasal spray is the

generic name for the brand Flonase, marketed in the United

States by Glaxo Smithkline. According to IMS Health, the total

market for this product in the US is about $580 million and there

are only three other generic versions of the product in the

United States. Fluticasone nasal spray is amongst the mostwidely used cortlcosteroids in treating allergic rhinitis.

Lincoln Pharma enters into agreement with Phafag AG,

Switzerland

Lincoln Pharmaceuticals Ltd (LPL), a world class pharmaceutical

company had entered into an agreement with Phafag AG,

Switzerland.for its Caroverine molecule for the the treatment of

Tinnitus-commonly known as ringing in the ear, a conditi

where inner hair cells get damaged causing continuo

depression, anxiety and insomnia in patients. Millions of peop

around the world suffer from Tinnitus. LPL becomes the fi

company in India to introduce a cure for Tinnitus as TINN

injection using Caroverine. TINNEX Injection is a slo

intravenous infusion. The dosage differs from patient to patieand depends on the severity .

Microbix, Zydus agree to market Urokinase in Nor

America

Microbix Biosystems Inc, a Canadian biotechnology compa

commercialising novel technologies, and Cadila Healthcare L

have signed a Letter of Intent to market the Thrombolytic dr

Urokinase in the North American markets.

The estimated market size for Urokinase use in the US alone

expected to touch $400 million by 2020. The same act

pharmaceutical ingredient (API) can be used in new and evlarger indications in oncology and ophthalmology. Over 4 milli

patients have been treated successfully with Urokinase.

The drug was withdrawn from the market for 3 years from 19

to 2002 for reasons unrelated to product performan

Urokinase was acquired by Microbix in 2008 which has sin

stepped up efforts to re-introduce the drug in North Americ

Events Calendar

Global News Update

Medicall Ahmedabad

Date: Feb 03-05, 2012

Venue: Ahmedabad, Gujrath

Organizer: Medicall

website:www.medicall.in

BioAsia 2012: The Global Biobusiness Forum

Date: 9 Feb 12 11 Feb 2012

Venue: Hyderabad International Convention Centre, Hyderabad

Organizer: BioAsia

Tel: 91 40 66446477

E-mail: [email protected]

MedicalFair India

Date: 2 Mar-4 Mar, 2012Venue: Bombay exhibition center, Mumbai

Webmail: http://ems2012.in/

Organizer : Messe Duesseldorf

http://www.medicalfair-india.com/

Banglore India Bio

Date: Feb 6-8, 2012Venue: Hotel Lalit Ashok,Bengaluru

Website: http://www.bangaloreindiabio.in

Tel: 91 80 4113 1912 / 13
http://www.medicall.in/http://www.medicall.in/http://www.medicall.in/http://ems2012.in/http://www.medicalfair-india.com/http://www.medicalfair-india.com/http://www.bangaloreindiabio.in/http://www.bangaloreindiabio.in/http://www.medicalfair-india.com/http://ems2012.in/http://www.medicall.in/


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Research Desk



- -

As on 21 Jan 2012 Market Cap Price Percentage Change (%)

In ` Mn In ` 1W 1M 3M 6M 1 Year

SUN PHARMACE 547616 529 2.89 5.62 8.13 5.23 8.28

DR.REDDY'S L 287598 1696 -0.64 4.74 8.05 4.97 -1.63

CIPLA LTD. 266409 332 -0.70 2.09 16.08 5.76 -4.35

LUPIN LTD 197597 442 2.62 3.15 -6.22 -4.63 -5.05

RANBAXY LABO 195380 463 0.84 18.39 -6.65 -12.90 -17.01

GLAXOSMITH 166645 1967 0.13 6.42 -6.40 -14.76 -13.40

CADILA HEALTH 133844 654 -3.64 -8.16 -13.70 -26.20 -21.57

DIVI's LAB 103787 782 -0.22 5.27 7.16 -5.62 24.01

GLENMARK PHA 86251 319 1.55 13.82 9.99 1.54 0.02

APOLLO HOSPITAL 84015 625 -3.55 15.35 17.83 22.32 27.13

PIRAMA HEALTH 71786 416 0.59 12.31 16.50 3.44 -9.66

BIOCON LTD 54980 275 1.76 5.98 -21.81 -26.86 -26.65

OPTO CIRCUIT 41576 223 9.03 27.25 -4.06 -15.20 -9.65

IPCA LAB LTD 35016 279 1.22 10.91 13.60 -16.88 -14.08

JUBILANT ORG 28798 181 -4.05 7.98 -9.40 -18.47 -28.51

AUROBINDO PH 28195 97 -6.71 12.73 -20.27 -41.97 -60.26

ORCHID CHEM 10785 153 7.07 24.21 0.52 -32.13 -48.87

BSE SENSEX 16644 3.62 10.31 -1.17 -9.53 -12.12

NSE NIFTY 5049 3.75 11.10 -0.85 -9.31 -11.61

BSE HEALTHCARE 6191 0.67 6.76 3.78 -3.51 -5.77

Companies Revenue EBITDA PAT Margins JAS

JAS FY10 JAS

FY11

YoY JAS

FY10

JAS

FY11

YoY JAS

FY10

JAS

FY11

YoY EBITDA

FY11

N

FY

DR.REDDY'S L 19783 22678 14.6% 3836 4798 25.1% 2627 3078 17.2% 21%

RANBAXY LABO 20593 20280 -1.5% 1632 -769 -147.1% 2432 -4646 -291.0% -4%

SUN PHARMACE 16357 18946 15.8% 5474 7840 43.2% 5010 5977 19.3% 41%

CIPLA LTD. 15738 17581 11.7% 3695 4376 18.4% 2533 3090 22.0% 25%

LUPIN LTD 15543 17522 12.7% 2944 4040 37.3% 2101 2669 27.0% 23%

CADILA HEALTH 11889 12389 4.2% 3024 2371 -21.6% 2298 1027 -55.3% 19%

AUROBINDO PH 11005 10973 -0.3% 1639 -708 -143.2% -1228 -802 -34.7% -6%

GLENMARK PHA 8683 10554 21.6% 2969 2256 -24.0% 2101 559 -73.4% 21%

JUBILANT ORG 9443 10481 11.0% 1862 2381 27.8% 771 794 2.9% 23%

APOLLO HOSPITAL 6410 6998 9.2% 1059 1165 10.0% 513 558 8.8% 17%

IPCA LAB LTD 5425 6369 17.4% 952 1309 37.5% 617 780 26.4% 21%

GLAXOSMITH 5747 6227 8.4% 1993 1830 -8.2% 1475 1459 -1.1% 29%

OPTO CIRCUIT 5208 5620 7.9% 1432 1547 8.0% 1164 1211 4.0% 28%

BIOCON LTD 4417 5084 15.1% 1221 1385 13.4% 701 857 22.3% 27%

PIRAMA HEALTH 4350 4776 9.8% 72 -233 -425.3% 892 524 -41.2% -5%

ORCHID CHEM 3738 4122 10.3% 870 1059 21.8% 155 -566 -464.0% 26%

Divi's Lab 3586 3541 -1.2% 1340 1382 3.1% 1026 1061 3.4% 39%

Stock Market Update

Quarterly Results ` in million

JAS:July-August-Sept qua


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Four-S Fortnightly PharmaHealth Track 9th Jan - 21st Jan 2012