current news analysis - 13 oct, 2010
TRANSCRIPT
8/8/2019 Current News Analysis - 13 Oct, 2010
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Hiren, Bhupendra, Nirav, KeyurGroup ² 8
13th October. 2010
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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
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News - 1
Piramal Healthcare closes Thane plant
Source: Business Standard
Date: 1st October , 2010
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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.
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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.
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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.
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News ² 2
Genzyme Board Unanimously Rejects Sanofi-Aventis
Tender Offer
News paper: The Economic Times
Date: 6th October , 2010
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Sanofi Aventis
Sanofi-Aventis was formed in 2004 when Sanofi-
Synthélabo acquired Aventis.
Headquarter: Paris
CEO: Chris Viehbacher
Revenue: ½ 29.31 billion (2009)
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Genzyme
American based Biotechnology company.
Founded: 1981
C
hairman: Henri A. Termeer Revenue: US $4.61 billion (2009)
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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.
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News Analysis
Genzyme reduce operational cost and improving
margin.
Optimize capital structure
3 Products expected to be launch by the end of
2013.
Alemtuzumab
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News ± 3
Alkem Laboratories has developed a low-
cost sweetener
Economics Times
1st October, 2010
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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.
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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
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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.
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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.
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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
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News ² 4
Four top Pharma firms bid for Paras
Pharmaceutical
News paper:- Business Standard
Date:- October 12, 2010
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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
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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.
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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.
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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
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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
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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.
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Analysis
Dermicool, the prickly-heat talc, displaced Nycil with its stress
on mentholated cooling
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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
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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.
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Present Situation
FMCG and OTC market is growing with 18%
Large market available
Strong base in FMCG and OTC
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