current news analysis - 9 oct, 2010

8/8/2019 Current News Analysis - 9 Oct, 2010

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Nirav, Bhupendra, Hiren, KeyurGroup 5

October 9, 2010


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FlowofPresentation

News 1

Tata motors raises QIP issue size

News 2

IIP rejects MNC firms suggestions on patent law

News 3

Biocon sees 15 percentage growth in next 2 year

News 4

Japan's Taisho Pharmaceuticals has emerged the top bidderto buy a majority stake in Indian drugmaker ParasPharmaceuticals


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News 1

TATAMOTORS RAISES QIP ISSUE

SIZE Source: Business Times

Date: 5th October


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OverviewofTATAMotors

Tata Motors is a part of the Tata Gr oup manages its share-holding

through Tata Sons. The company was established in 1935 as a locomotive

manufacturing unit and later expanded its operations to commercial vehicle

sector in 1954 after forming a joint venture with Daimler-Benz AG of

Germany.

Founded in:1945

Headquarters: Mumbai, India

in 2005, it launched TataAce, first indigenously developed mini-truckof

India. In 2009, it created history by launching Tata Nano, the worlds

cheapest car.


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News Overview

Tata Motors, India's biggest vehicle maker, stated today that it has decided

to increase the issue size of the qualified institutional placement (QIP) by

43 per cent to $750 million in viewofan encouraging response it received.

The committee ofdirectors ofthe company has authorized that the size of

the offering ofthe 'A' Ordinary Shares be raised from $400 million to $550

million, a release from the company stated today.

On Friday, Tata Motors had informed regarding the launch ofan issue of

Ordinary Shares and 'A' Ordinary Shares through the QIP route for a base

amount of$525 million, comprising of4200 million ofOrdinary Shares

and $325 million of 'A' Ordinary Shares.


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Analysis

Tata Motors says that it intends to use the pr oceeds primarily for its debt

reduction program, capital expenditure, long term working capital

requirements, growth objectives, general corporate purposes and any other

purposes as may be permissible under applicable law.

The QIP is not for sale within the United States of any equity shares or any

other security of the Company.

The securities of the Company have not been and will not be registered under

the U.S. Securities Act 1933, as amended (the U.S. Securities Act), and may

not be offered or sold in the United States or to, orfor the account or benefit

of, U.S. Persons, absent registration under the U.S.


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News 2

IIP rejects MNC firms suggestions on patent law

Business Standard

7 October 2010


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NEWS

Department of industrial policy and promotion (DIPP) has

rejected all suggestions made by multinational drug majors

lobby gr

oup- Organizati

onof

pharmaceuticalpro

ducersof

India (OPPI).

The association had sought amendments to the Indian patent

act to introduce some of the controversial provisions that were

kept out from the act during its previous amendment five

years ago.


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DIPP

The Department of Industrial Policy & Pr omotion was

established in 1995

It has been reconstituted in the year 2000 with the mergerof

the Department of Industrial Development.

It is responsible for formulation and implementation of

promotional and developmental measures for growth of the

industrial sector


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It is based on new Delhi.

ShriAnand Sharma Ministerfor Commerce and Industry.

Shri Jyotiraditya Scindia MinisterofState in the Ministry of

Commerce and Industry.


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Role and function ofDIPP

Formulation and implementation of industrial policy and

strategies for industrial development in conformity with the

development needs and nationalobjectives;

Monitoring the industrial growth, in general, and performanceof industries specifically assigned to it, in particular, including

advice on all industrial and technical matters;

Formulation ofForeign Direct Investment (FDI) Policy and

promotion, approval and facilitation ofFDI;

Encouragement toforeign technology collaborations at

enterprise level and formulating policy parameters for the

same;


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CONT.

Formulation ofpolicies relating to Intellectual Property Rights

in the fields ofPatents, Trademarks, Industrial Designs and

Geographical Indications ofGoods and administration of

regulations, rules made there under ;

Administration of Industries (Development & Regulation)

Act, 1951

Promoting industrial development of industrially backward

areas and the North Eastern Region including International

Co-operation for industrial partnerships and

Promotion ofproductivity, quality and technical cooperation.


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News analysis

DIIP has all rights to reject MNC firms suggestion.

According to news, the downside ofdata exclusivity include

providing unnecessary protection to non-patented oroff-

patented drugs.

It will also create barriers for compulsory for compulsory

licensing.


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News 3

Biocon sees 15 percentage growth in next

2 year

News paper:- The Economics Times

Mon Oct 3, 2010


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Biocon Ltd.

Type: Public

Founded: 1978

Revenue: 2405 Crore

CEO: Kiran Mazumdar Shaw


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News Overview

The firm will invest three billion rupees over the

next three years to set up plants that would supply

generic biotechnology drugs to Europe and the

United States

Biocon planning tolaunch generic insulin in

Europe by 2013.


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News Overview

Biocon has cash ofabout 3 billion rupees, willfund

this expansion through bankloan and internal

accruals.

Biocon share price rise by 27%.

Pfizer in talks to buy stake in Biocon.


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MarketAnalysis

Growth rate ofPharma Industry: 19%

Diabetology

o Growth rate: 24%

o Generic Insulin help to get more market share.

Nephrology

o Growth rate: 20%o Niche market


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MarketAnalysis

Oncology

o Growth rate: 28%

o Biotechnology help to differentiate

Cardiology

o Growth rate: 25%

o Well known brands in this category


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Recommendation

Biocon can introduce more medicine in existing

segment

Biocon can enter intoother segment

Biocon should fileANDA.


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News 4

Japan's Taisho Pharmaceuticals has emerged the top

bidder to buy a majority stake in Indian drugmaker

Paras Pharmaceuticals

News paper:- The Economics Times

Mon Oct 4, 2010


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News Overview

The Japanese company, which has no presence in

India, has offered more than six times Paras's

estimated revenues of5 billion ($113 million) to

5.5 billion rupees

Pfizer Inc, GlaxoSmithkline , Sanofi-Aventis and

Daiichi Sankyo


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News Overview

Paras Pharma founder Girish Patel and his family

own the remainder 30 percent.

"We are interested in entering the Indian market.

But it is not true that we have offered to buy the

PE's stake," a spokesman forTaisho, one ofJapan's

top 10 drugmakers, told the paper.


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Company detail - Paras Pharma

Ahmedabad-based Paras Pharma has estimated

annual revenues ofRs 500-550 crore

It owns popular brands in niche segments

Pain-relieving ointment Moov

Anti-cold and cough medicine DCold

Prickly heat powder Dermicool.


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Company detail - Taisho Pharma

Taisho is among Japans top 10 drugmakers, but

has no presence in India.

It employs over 5,500 globally and had revenues of

$3.1 billion for the year ended March 2010.

It is the leading player in over-the-counter, or OTC,

medicines and health-related products in Japan, its

website says. OTC medicines can be sold without a prescription.


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Analysis

A buyout will give the global player immediate

dominance in several segments of the market where

Paras has presence.

Besides, the company would also be able to sell

Paras products in other emerging markets using

existing marketing channels.

Taisho has presence in countries such as the US,the UK, China, Malaysia and some otherAsian

nations.


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current news analysis - 9 oct, 2010

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