current news analysis - 13 oct, 2010

8/8/2019 Current News Analysis - 13 Oct, 2010

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Hiren, Bhupendra, Nirav, KeyurGroup ² 8

13th October. 2010



Flow to Presentation

News ² 1

Piramal Healthcare closes Thane plant

News ± 2

Genzyme Board Unanimously Rejects Sanofi-Aventis Tender

Offer

News ± 3

Alk em Laboratories has deve

loped a

low-cost sweetener

News ± 4

Four top Pharma firms bid for Paras Pharmaceutical



News - 1

Piramal Healthcare closes Thane plant

Source: Business Standard

Date: 1st October , 2010



Company overview

Piramal Healthcare is India's second largest Pharmaceutical Healthcare company

with a presence in the cardio-vascular segment, the antibiotics and respiratory

segments, pain management, neuro-psychiatry and anti-diabetics segments and

biotechnology.

It is based in Mumbai.

NPIL came into existence in 1988 when it acquired Nicholas Laboratories from Sara

Lee and in thelast 15 years grown primari

ly on acquisitions, mergers and a

lliances.

NPIL's has a 2,700-strong field force.

It has 16 strong brands in the Indian Pharma Industry; manufacturing plants - NPIL

has plants in Hyderabad and Pithampur.



News

In a bid to give a push to its realty business, Piramal Healthcare has put on the

block 40 acres of prime land which houses a manufacturing plant in Thane.

The company is lik ely to go in for residential development or develop a

business hub to tak e advantage of the boom in Thane's real estate.

The company had offered a voluntary retirement scheme (VR S) to the 106

employees, suggesting the last date of their service would be September 30.

Till now, only 36 have responded; the others have launched an agitation

against the VR S and the closure plan.

However, the company requires the civic body¶s approval for change of use of

land from industria

lto residentia

l.



Analysis

According to a leading business daily, Piramal Healthcare is planning to soon

formally approach the Thane civic body. This will be to seek clearances for

conversion of the land from industrial use to residential-cum-commercial use

Piramal Healthcare·s move comes at a time when Raymond, which has closed

its textile unit situated nearer to the former·s plant in Thane, has declared its

plan of realty development on 126 acres of land.

Population in slums & also through tenaments show increase, its percentage is

nearby 29% to 35% of total population.

Average family size in total is nearby 4.5 person per tenaments.

Average family size in slum is ranging from 4.67 to 5 persons per tenament.



News ² 2

Genzyme Board Unanimously Rejects Sanofi-Aventis

Tender Offer

News paper: The Economic Times

Date: 6th October , 2010



Sanofi Aventis

Sanofi-Aventis was formed in 2004 when Sanofi-

Synthélabo acquired Aventis.

Headquarter: Paris

CEO: Chris Viehbacher

Revenue: ½ 29.31 billion (2009)



Genzyme

American based Biotechnology company.

Founded: 1981

C

hairman: Henri A. Termeer Revenue: US $4.61 billion (2009)



News Overview

Genzyme Corp.·s board of directors had reject $69.00 per

share tender offer from Sanofi-Aventis.

The board belief that the offer price of $69.00 per share is

inadequate and substantially undervalues the company.



News Analysis

Genzyme reduce operational cost and improving

margin.

Optimize capital structure

3 Products expected to be launch by the end of

2013.

Alemtuzumab



News ± 3

Alkem Laboratories has developed a low-

cost sweetener

Economics Times

1st October, 2010



About Company

Alk em Laboratories Ltd. was founded in 1974 by one of

India's respected entrepreneurs, Shri Samprada Singh.

Alk em laboratories ltd. has evolved as the leader in the

formulations segment of Indian pharmaceutical Industry

Alk em's sales and mar k eting strengths and expertise in brand

building are widely recognized as amongst the very best with

14 brands amongst the top 300 brands of the country.



News Overview

Alk em Laboratories has developed a low-cost sweetener

It plans to commodities sweeteners that are sold as premium

products at present, by pricing it as low as ordinary sugar or 40

times less than mar k et leader Zydus Cadila¶s Sugar Free.

company has filed an application to patent the product as well as

the process to mak e it in India two months back and are in the

process of filing for patent in other international mar k ets

Alk em plans to launch the product in the next two month



About competitor

Product range of Zydus-Cadila in this segment

Sugar Free Gold ± India¶s No.1 sweetener with a mar k et

share of over 70%,

Sugar Free Natura ± a zero calorie sucralose based sugar

substitute,

Sugar Free D¶lite ± a low calorie healthy drink and

Nutralite ± a premium cholesterol-free table spread.



News analysis

it can be used as an ingredient for food and deserts and will

significantly bring down cost of sweeteners for those suffering

from diabetes.

Dubbed the diabetes capital of the wor ld, India has an estimated

50 million patients who are suffering from high sugar level in

their body.

India consumes as much as 25 million tonne sugar every year.

Sugar prices have crashed by a third after hitting a peak in

January this year.



Cont«

Alk em will launch this product at lowest price

They can get new consumers in mar k et

They can break the mar k et of Zydus cadila

Patients are more

They can launch zero celery sweetener lik e Zydus

cadila in future



News ² 4

Four top Pharma firms bid for Paras

Pharmaceutical

News paper:- Business Standard

Date:- October 12, 2010



News overview

The countdown to the sale of Ahmedabad-based Paras Pharma

has begun, with at least four top multinational drug makers

putting in their bids in the initial round.

Interestingly, Indian fast moving consumer goods (FMCG)

companies and Pharma players have so far stayed out of the

race.

People close to the development said on Monday was the day the

initial bids were to be submitted and four global drug companies



News overview

The world·s second-largest - GlaxoSmithKline (GSK)

The third-largest Sanofi-Aventis

Swiss multinational Novartis

US-based Johnson & Johnson

Have actually put in their concrete bids for the over-the-counter

(OTC) drug major.

They indicated the initial bids were much lower at around $600-

$700 million, from the earlier expected valuation of close to $1

billion.



News overview

´While more serious players such as Japan·s Taisho

Pharmaceuticals are expected to join the race, domestic FMCG

majors like Emami and Dabur are unlikely to place a bid for

the company,µ said one of the sources.



Company detail ² Paras Pharma

Paras Pharmaceuticals, makers of over the counter brands like

Moov, Dermicool, D·Cold, Krack, RingGuard and Setwet

Reportged revenues of 450 crore in FY 09

CEO ² Girish Patel

Holder of 30% stake of Paras Pharma



Analysis

Paras makes for an attractive buy because there are not many

FMCG companies on sale with as strong a set of brands at a time

when global Pharma giants are keen on hedging their portfolios

against the impending expiry of patents.

There are several things that Paras has done right

Company has followed a pattern of identifying the gaps left by large

brands or categories where the leader had not been too vibrant



Analysis

Moov as a specialist pain reliever was able to rattle the likes

of Iodex (Glaxosmithkline) and Zandu (now an Emami product)

which were general pain balms. Since its launch, it has seen its

positioning change but has remained a specialist.

Paras cracked open another need gap with its footcream,

Krack.



Analysis

Dermicool, the prickly-heat talc, displaced Nycil with its stress

on mentholated cooling



Analysis

Paras also has a storng packaging and distribution.

When it launched D·Cold cold-relief balm, it launched two

variants ³ a green pack for kids, at par with its arch rival,P&G·s Vicks Vaporub, and a red pack for adults, insinuating

that Vicks would be a weaker equivalent.

It came in a metal

jack

et shaped in a hal

f circl

e (as opposedto Vick·s full circle pack) which drove home its message

ADHE MEIN DUGNA



Present Situation

Neither are all of Paras· brands safe in the niche they created

Livon has been buffeted by conditioners in the market, while its

own set of conditioners fails to recreate the serum success

Recova, its anti-ageing cream is fighting a lone battle amidst a

phalanx of anti-ageing products from Garnier and Ponds

Set-Wet deodorants is one among a slew of deodorant

brands.



Present Situation

FMCG and OTC market is growing with 18%

Large market available

Strong base in FMCG and OTC

current news analysis - 13 oct, 2010

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