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An overview of major risks faced by Indian Pharmaceutical Industries and their mitigants and development of a probability-impact score to quantify the risk faced by Indian Pharma players
Name Sachin Menon Rajesh Bassana Mohit Sethi Soumitra Mukherjee Rajsekhar Company Lupin Ltd. Ranbaxy Laboratories Ltd. Dr. Reddy’s Lab Ltd Sum Pharma Ltd. Cipla Ltd Phone Number 7737963223 7737964017 7737942707 7737963501 7737963252
Sectoral Introduction: Companies under study: Methodology: About the companies: Dr. Reddy’s Laboratories Limited Lupin Limited Sun Pharmaceutical Industries Limited Ranbaxy Laboratories Limited Cipla Limited Risk Profiling: Economy wide risk Company specific risk Industry Risk Quantifying the risks: Conclusion: Appendix-I CIPLA Ltd: Threats, Risks and Concerns Key financial ratios which impacts the company: (CIPLA) Appendix-II LUPIN LIMITED Threats, Risks and Concerns Key financial ratios which impacts the company: (LUPIN) Appendix-III Dr. Reddy Laboratories limited Threats, Risks and Concerns Key financial ratios which impacts the company: (Dr. Reddy) Appendix-IV Sun Pharma Limited Threats, Risks and Concerns Key financial ratios which impacts the company: (Sun Pharma) Indian Pharma Industry 3 3 3 4 4 5 6 6 6 7 7 7 7 9 10 11 11 11 12 13 13 13 16 17 17 17 24 25 25 25 27 Page 2 of 29
Appendix-V Ranbaxy Laboratories Ltd. Threats, Risks and Concerns Key financial ratios which impacts the company: (Ranbaxy)
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Indian Pharmaceutical industry is worth USD 21 billion and is growing at an impressive of 9 % CAGR for the past five years. We are the world’s 14th largest Pharma player by value and third largest by volume. India is predominantly a generic market and most of the Indian players have their expertise in generic segment. More than half of the total revenue of Indian Pharma players is through exports
Companies under study:
Indian Pharma sector is highly fragmented with about 24000 companies in organized as well as unorganized players put together. The top 300 companies make up 85% of the market. In this study we have taken the top five players of the industry which contribute to about 15% by volume of sales. The companies selected are : Cipla Limited Sun Pharmaceutical Industries Limited Lupin Limited Dr. Reddy’s Laboratories Limited Ranbaxy Laboratories Limited
The study aims to identify the major risks associated with the companies under study. These risks are then to be classified into the broad categories of: Economy wide risk Industry risk and Firm specific risk
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An arrangement is also devised to quantify the risks based on their probability of occurrence and impact that each risk will have in case of their occurrence. Though both these attributes are qualitative by assigning a number to both probability and occurrence and then multiplying both the numbers we can devise a quantitative scale as well to measure the risk. Symbolically speaking the arrangement would be similar to a 3x3 matrix as shown in the figure below:
High Medium High Priority Low Medium Priority
Probability of occurrence
The number assigned to the impact on business can be both positive and negative. A positive number signifies that the risk will affect the business adversely and vice versa. By definition risk stands for both deviation of expected outcome that can be both positive as well as negative. The purpose of this study is to analyse the negative impacts only.
About the companies:
As mentioned earlier in this study the top companies of Indian Pharma sector by scale has been taken into consideration. A brief overview about the companies is as follows:
Dr. Reddy’s Laboratories Limited
Dr. Reddy’s Laboratories Limited (Dr. Reddy’s) was incorporated in India by its promoter and founder Chairman, Dr. K. Anji Reddy as a Private Limited Company on February 24, 1984. On a consolidated basis (as per IFRS), Dr. Reddy’s revenues of Rs. 7015 crore in 9m, 2011-12 marked a growth of 29% over previous year (Rs. 5452 crore during 9m, 2010-11). Through its three businesses Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products – Dr. Reddy’s offers a portfolio of products and services including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, biosimilars, differentiated formulations and News Chemical Entities (NCEs). ICRA has given the rating of AA + for long term and A1+ for short term funds.
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Strong research and development (R&D) capabilities, healthy product pipeline, stable profitability indicators. As seen from the revenue mix figures below, most of the income for the company comes from overseas markets with North
America being the biggest contributor to the revenues. This is also a major point to be kept in mind while analysing company risks
Lupin (erstwhile Lupin Chemicals) was founded in 1968, later Lupin Chemicals Limited merged with Lupin Laboratories Limited. Lupin revenues of Rs. 4,527 crore in FY-2010-11 marked a growth of 22% over previous year (Rs. 3,723 crore during FY-2009-10). ICRA has given the rating of AA + for long term and A1+ for short term funds. Growth is supported by large number of product filings across the globe resulting from company’s robust R&D team and strong research infrastructure augurs well for the company. The Company has significant market share in key markets in the Cardiovascular (prils and statins), Diabetology, Asthma, Pediatrics, CNS, GI, Anti-Infectives and NSAIDs therapy segments along with global leadership positions in the Anti-TB and Cephalosporins segments. The Company's foray into Advanced Drug Delivery Systems has resulted in the development of platform technologies that are being used to develop value-added generic pharmaceuticals. They have a market presence in 70 countries. For Lupin anti bacterial – Suprax is their largest selling brand and contributes about USD 3.50 Billion in revenue. The company has manufacturing facilities spread India & Japan, recently acquired I’rom Pharmaceuticals through its Japanese arm. As in case of Dr. Reddy’s Lab, Lupin also has its major share of revenues from overseas markets.
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Sun Pharmaceutical Industries Limited
Sun Pharma began in 1983 with just 5 products to treat psychiatry ailments. Sun Pharma was listed on the main stock exchanges in India in 1994. Sun pharma revenues of Rs. 1,985 crore in FY-2010-11 marked a growth of 05% over previous year (Rs. 1,891 crore during FY-2009-10). Crisil has given the rating of AA A for long term and A1+ for short term funds. Sun Pharma has a strong market position in the fast-growing cardiology, neurology, gastroenterology, and diabetology segments in India. These segments account for over 70 per cent of the company’s domestic formulation sales. For Sun Pharma as well 58% of its sales is achieved from overseas markets.
Ranbaxy Laboratories Limited
Ranbaxy was incorporated in the year 1961 and got listed in 1973 and is India's largest pharmaceutical company. It is an integrated, research based, international pharmaceutical company, producing a wide range generic medicines. Ranbaxy today has a presence in 23 of the top 25 pharmaceutical markets of the world. The Company has a global footprint in 43 countries, worldclass manufacturing facilities in 8 countries and serves customers in over 125 countries. Ranbaxy revenues of Rs. 7,709 crore in FY-2010-11 marked a growth of 36% over previous year (Rs. 5,687 crore during FY-2009-10). CARE has given the rating of AA A for long term and A1+ for short term funds. Ranbaxy features among the top 10 generics companies in the world. The company has a large international presence. International revenues accounted for about 81 per cent of the company’s total revenues.
Cipla was incorporated in the year 1935 by the late Dr Khwaja Abdul Hamied. The company launched its first product in 1937 and has since then expanded to establish multi-locational manufacturing units in India which manufacture more than 1,500 drugs. Cipla revenues of Rs. 6,368 crore in FYIndian Pharma Industry Page 6 of 29
2010-11 marked a growth of 13% over previous year (Rs. 5,657 crore during FY-2009-10). CARE has given the rating of AA A for long term and A1+ for short term funds. Cipla exports to more than 170 countries through joint venture and partnership, thereby reducing its geographical concentration risk.
Pharmaceutical sector is the sector that is least affected by economic downturns and disturbances. Even during the recent difficult times the Pharma industry has been growing at an impressive pace world over.
Economy wide risk
India is majorly a generic drug manufacturer. Generic drugs are copy drugs that have gone off patent and thus act as an economical substitute to the expensive original drugs. The global economic down turn has revived the sales of generic drugs globally. Currently the ratio of generic drug to original drug is 36:64. It is estimated that by 2020 this ratio will become 58:42 in favour of generics. Thus down turn in global economy instead of posing threat to the Indian Pharma sector is offering an opportunity to grow further.
Company specific risk
Majority of the risk faced by the companies in Pharma industries are common across the companies. Most of them would be covered in industry risk. But in case of large family held companies like Lupin, Dr. Reddy’s Lab and Cipla the risk of success is a very important risk. Especially in case of Cipla, post Dr Y.K Hamied the success plan is not in place. This is a major risk and its impact would be showed a detail in the risk matrix below.
As discussed above Pharma industry is a steadily growing industry with strong fundamentals. All of the major Pharma players in the country are cash rich and have huge levels of retained earning year on year. The future prospects of the industry are also bright. But never the less there are certain risks that even this industry faces. The following are the major risks faced by Indian Pharma sector. Regulatory risk – The recent regulatory development in India in form of NPPP-2011 could have a detrimental effect on the growth and development of Pharma sector in India. Risk 1 – NPPP-2011: National pharmaceutical pricing policy aims to bring 348 medicines under the regime of price control. This price control will be levied on every stage of manufacturing of drug. Implementation of this rule will erode the profits of the Pharma companies to a great extent. Mitigant 1 – Indian players will have to focus more on R&D capabilities and development of new drugs. The revenue loss from exiting products can be made up by introduction of new more efficient drugs. Risk 2 – Tightening regulatory framework in western markets: International regulators like US FDA has of late have increased their monitoring of plant of Pharma companies that has approval to manufacture drugs for exports. Due to increase health care awareness and implementation of stringent rules in their home countries there has been many cases where Indian manufacturers have Indian Pharma Industry Page 7 of 29
been reprimanded by US FDA. In past six months itself Lupin, Cipla and Ranbaxy have got notices from US FDA for incomplete adherence to manufacturing norms. Sun Pharma and Dr. Reddy’s lab have got similar notices from UK FDA and drug authorities of Germany. If such notices are repeated then the drug companies may lose the authority to export drugs from their plants. This will have a catastrophic effect on the whole Pharma business as Indian Pharma companies earn majority of their revenues from exports. Mitigant 2 – Indian Pharma companies have to immediately invest in their manufacturing process to make it more stringent and ensure complete adherence to international norms. The focus of quality has to be put in place and fresh investment has to be made in machinery enhancement and process control. Also to avoid risk of concentration the Pharma companies should expand to developing markets as well and not just focus on developed markets. In the last 3-4 years the developing markets as well as markets like Africa and Latin America have been growing much faster than developed countries. This opportunity should be tapped and the Indian players should expand their presence in these markets as well. Risk 3 – Erosion of margins in generics: Generics as explained above are copy of original drugs that go off patent. Internationally the acceptance of generics have increased due to global recessionary atmosphere as generics are much more economical that the original drugs. This increase in demands has attracted many large global players to generic space. Due to increased competition it is said that the margins in the generic space is set to come down. Such a situation will affect Indian players adversely as India is one of the largest generic makers in the world. Mitigant 3 – Leveraging extensive expertise in generic manufacturing to control cost and investment in newer machinery to keep prices under control. Of late Ranbaxy has been up grading its machinery and replacing old machinery with better and efficient lines to remain competitive in generic business space. Other players have to follow the suit to sustain in the generic market. Risk 4 – Counterfeiting: It is estimated that 10-12 percent of total medicines available in Indian market are counterfeit. The Pharma companies pose to lose in two ways from this menace. They lose a certain market share to these counterfeit drugs and also the ill effects caused to the patients on account of consumption of these duplicate medicines lead to a huge reputation risk to the original drug manufacturer. This may even cause an irreparable damage to the brand as a whole. Mitigant 4 – Working closely with the government to impose stricter laws to deter the practise of counterfeiting. Constantly changing packaging of medicines and making it such that imitation is not easy. Educating end users about the about minute nuances of original drugs by use of print and electronic media. Risk 5 – Foreign currency fluctuation risk: As shown above all the major drug manufacturers in India earn majority of their revenues from exports. In such scenario any adverse moment in currency fluctuation will lead to major strain on the profitability of the Pharma players. Also the imports by these companies form only a small percentage of their total exports as a result of which there is no natural hedge for the companies in case of currency fluctuations. Of late there have been heavy depreciation of rupees thereby making exports more profitable but in case of reverse movement the Pharma players tend to incur losses as well.
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Mitigant 5 – These companies should avoid open position in forex and should hedge their currency risks well. Also the exchange rate movements should be very closely monitored and a team of experts should be set up to gauge the exchange rates and thus use the fluctuations to one’s own benefits. As the components of exports in total sales is very high the cost of setting up such a team of experts will be negligible in front of the potential of risk averseness that can be achieved by such an act. Risk 6 – Obsolesce: With Indian markets opening up to larger global players there always exits a risk that with introduction of new efficient drugs the exiting medicines becomes out of favour in no time. Mitigant 6 – Focus on R&D: Traditionally Indian players are not known for their R&D prowess when compared to their global counterparts. The global majors in Pharma sector spend about 25 to 30 % of their revenues on R&D. When it comes to Indian players even the top Pharma companies spend about 5-10% of their revenues on R&D. The attention has to be focused on R&D to counter the threat of obsolesce.
Quantifying the risks:
The risk has been described qualitatively above. To asses risk by a quantifying measure probabilityimpact framework can be used. The methodology would be as shown below: Of all the risks identified above, each risk is to be given a number based on their probability of occurrence. Say if a risk has 20% probability of occurrence then it should be assigned 0.20. Impact on occurrence – If the risk identified does occur then what would be the impact on the business that it poses. This can be classified as very high, high, medium, low and very low. A number can be assigned to each class as very high – 5, high – 4, medium – 3, low – 2 and very low – 1. The impact score assigned to each risk will be the product of probability of occurrence and impact on occurrence. High the score, more severe is the risk.
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The risks identified above are measured as shown below:
Prob of occurrence 0.8
Impact on occurrence Very high
Impact number 5
Risk Score 4
Mitigant Can be countered with development of new drugs Expansion to new markets and investment in new machinery and stricter norms Focus on R&D and expansion to new markets like Africa and Latin America Stricter punishment for offenders and more investment in packaging to make counterfeiting difficult. Proper hedging
NPPP 2011 Tightening regulatory frame work in US
Erosion of margins in generics
Foreign Currency risk Obsolesce
The Pharma industry of India has been doing well for the past many years now. The fundamental of the pharmaceutical players in India is found to be strong. To summarise in short it can be said that the major threats on the industry can be avoided by the measures as below: Focus more on research and development Expand to developing markets Focus on cost control
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Appendix-I CIPLA Ltd:
Threats, Risks and Concerns
1. NPPP-2011: The government is yet to decide conclusively on the issues of Data Exclusivity and Data Protection which are both “Trips Plus” measures. The European Union government is pushing for Trips Plus provisions and dilution of the Patents Act through bilateral agreements. There is a lot of uncertainty with regard to the government’s position on these two vital issues. 2. Drug Pricing: Cipla has some pending legal cases on account of alleged overcharging in respect of certain drugs under the Drug Price Control Order. The aggregate amount of the demand otices received is about `1230 crore (inclusive of interest). The company has been legally advised that based on the directions given by the Supreme Court, there is no probability of the demand becoming payable by the company. Any unfavourable outcome in these proceedings could have an adverse impact on the company. 3. Tightening regulatory framework in western markets : Our manufacturing facilities are regularly monitored and approved by various regulatory authorities across the globe.These authorities have become more vigilant and strict with respect to compliance. Periodically, the US FDA conducts routine audits of all approved facilities and accordingly several of our plants including Goa, Patalganga, Kurkumbh and Bengaluru were inspected by the US FDA. Currently, all facilities continue to be approved by the US FDA. 4. Foreign currency fluctuation risk: During the year, the Indian Rupee appreciated by more than 3-4 per cent compared to the US Dollar. Such severe flauctuations in foreign currency exchange rates can have a signifi cant impact on the Company’s operations and financial results.
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Key financial ratios which impacts the company: (CIPLA)
Mar '11 Debt Coverage Ratios
Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) 20.27 16.41 16.65 18.25 18.25 14.98 14.98 16.22 14.54 14.25 82.25 82.36 17.29 24.63 21.32 21.68 21.11 21.11 18.97 18.97 22.16 18.31 17.57 73.55 73.66 22.16 23.78 20.52 20.88 21.75 21.75 14.58 14.58 22.39 17.89 23.17 55.86 55.97 26.79 20.27 16.9 17.16 17.85 17.85 16.43 16.43 18.17 18.72 16.85 48.2 48.32 18.24 23.07 19.8 24.27 21.26 20.3 18.41 17.45 23.4 20.7 19.61 41.52 41.64 23.45 1.94 1.56 0.07 -2.17 1.57 --1.81 1.93 0.22 0.02 2.62 1.88 0.15 0.15 2.65 1.76 0.04 0.04 222.4 0.07 126.22 110.41 57.08 0 52.13 45.05 35.92 0.22 25.56 18.78 67.27 0.15 50.81 47.1 112.84 0.04 79.53 70.12
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Appendix-II LUPIN LIMITED
Threats, Risks and Concerns
In our quest to be consistently progressive and increasingly profitable, Lupin has adopted prudent risk management measures and mechanisms to mitigate environmental, operational and business risks. The Company believes that it has created the requisite framework to handle varied economic, financial, geo-political and social risks and is continually evolving proactive strategies to counter them. Price erosion within the global generic industry, specifically in the advanced markets has been a constant threat faced by all generic players. Our consistent investments in manufacturing and our strategy to remain a vertically integrated pharmaceutical business built around the Company’s strengths in API and Intermediates will continue to be a critical differentiator and will play a crucial role in strengthening our competitive positioning for our global formulations business. Lupin would also continue to focus on value added products and niche therapy segments to grow and build value. Lupin’s current business goals and growth objectives have been well evaluated and we remain prudent in terms of outlays and budgets inspite of the fact that the Company is more than well positioned to raise debt easily and on the most competitive terms. The larger global economic and financial environment continues to have minimal impact to the Company’s financial architecture. Currency fluctuations and foreign exchange risks have also been minimized because of internal forecasting mechanisms and a well-planned currency hedging strategy. Drug Price Control Order (DPCO) continues to be a challenge within the Indian pharmaceutical space. However, over the years, Lupin’s basket of products and the chosen markets and segments it operates in, have meant that DPCO directives are becoming increasingly less material to the overall business of the Company. Prudent procurement strategies and forecasting systems have helped the Company sustain its profitability, inspite of the adverse input price volatility. Over the years, the Company has gained experience and expertise in dealing with such volatility and has been able to mitigate its impact on the business. Credit Challenges Globally, generic pharmaceutical business is characterised by low entry barriers and strong pricing pressures arising from cost-based competition further aggravated by Government mandated actions to reduce healthcare costs in certain markets In spite of being amongst the larger players from India, remains small compared to global generic majors Impending generic threat to Suprax- the company’s key branded drug in the US; however, impact limited to an extent by successful filing of citizen’s petition and launch of product line extensions
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Regulatory risks in developed markets, related to patent challenges, product launches and manufacturing facilities/ processes Likelihood of large in-organic investments towards expanding geographic presence and strengthening portfolio of branded drugs may impact financial risk profile R&D investments in novel drug delivery and development yet to realise any substantial returns; New Molecular Entity (NME) pipeline at a very nascent stage Any significant adverse development related to price control in domestic market could impact currently strong profitability profile
Business Risk Profile Strengthening presence in the US market through portfolio of branded products and expanding product pipeline in the U.S. generic market. Lupin’s presence in the U.S. market is based on a two-pronged strategy – (a) building branded formulation business through in-licensing and acquisition of products (b) developing a large scale generics business with presence in niche therapy areas supported by its strengths in backward integration and established relationships with channel partners. Presently, Lupin is among the few Indian pharmaceutical companies to have established a successful branded formulations business in the U.S., representing 13% of its consolidated turnover in 2009-10. Current portfolio consists of four brands namely- Suprax, Antara, AeroChamber Plus and the soon to be launched Allernaze. Suprax, the company’s largest selling branded product is yet to face generic competition in the U.S. While the patent on Suprax has already expired, Lupin management does not foresee entry of generics in the short term having successfully filed a citizen’s petition with the U.S. FDA which requires the regulator to approve the generic form by applying the same standards of evaluation as were applied to Lupin. Furthermore, Lupin has launched line extensions for Suprax with 50% of sales successfully switched to the double-strength tablets, thereby minimising the generic threat to lower-strength tablets. In the future, the company will also launch chewable tablet as well as drop formulations for Suprax. Since generic entry into a product generally starts at the lower strength tablet formulation, Lupin’s line extensions help limit the impact of the impending competition from generics for Suprax. The launch of Allernaze, initially planned for third quarter of FY 2011, has been delayed due to manufacturing related issues pertaining to scaling and validation. While the product has already received approval from the U.S. FDA, Lupin expects to sort out the manufacturing related issues soon and plans to launch the product shortly. Over the past two years, Lupin has ramped up its sales force in the U.S. from 60 to 170 representatives in light of the addition of Antara and imminent launch of Allernaze. Over the past year, Lupin has strengthened its presence in the U.S. generic market through steady commercialisation of its ANDA pipeline and is currently ranked the 5th largest generic player in the U.S. in term of prescriptions, according to IMS Health (Lupin was ranked 8th in March 2010). Lupin’s success in the U.S. generic market can be attributed to its strong relationships with channel partners, established track record of on time delivery and strong regulatory compliance in addition to robust product filings. Going forward, the continued commercialisation of the strong product pipeline including oral contraceptives (OC) will be a key growth driver for the company. Having already filed 23 ANDAs in the OC segment and approvals expected to start shortly, Lupin is now well positioned to launch these products in a phased manner starting with four products in October 2011. The next wave of OC products Indian Pharma Industry Page 14 of 29
(12-15) will be launched in the following year. Lupin’s foray into the OC market presents a lucrative opportunity for the company and will be supported by backward integration with the API being supplied from its Indore facility which was recently inspected by the U.S. FDA and found acceptable. Lupin’s vertical integration in OCs will help the company remain cost competitive as well as provide flexibility in manufacturing. Strong growth prospects led by Japanese government’s pro-generic policies and Lupin’s strategy to backward integrate its Japanese operation with sourcing from India result in favourable outlook Estimated at around US$ 70-75 billion and with almost 100% insurance coverage, Japan is the second largest pharmaceutical market in the world after US. Despite its size, the generic penetration is presently low (5-6% by value and 12-14% by volume). However, over the past few years, in an attempt to lower healthcare costs, the Japanese Government has introduced various reforms in order to increase the penetration of generic medicines. Despite the evolving opportunity in the generic space, the Japanese market is fairly unique on two accounts - regulatory framework related to approvals is fairly complex resulting in high entry barriers due to stringent regulatory guidelines and Japan specific molecules (number of molecules are developed and sold by Japanese companies only in Japan). This necessitates overseas players to partner with local Japanese players. In this context, Lupin acquired majority stake in Kyowa Pharmaceuticals (Kyowa), the tenth largest generic company in Japan in October 2007. Post the acquisition, Lupin had put in place a five year profit improvement plan for Kyowa with focus on improving gross margins through greater efficiencies in sourcing of APIs. In FY 2010, Kyowa reported consolidated sales of Rs. 534.1 crore representing a growth of 9%, coupled with an improvement in gross margins. Going forward, Lupin plans to launch 3-4 products in the Japanese market by the end of FY 2011. In the first half of FY 2011, Kyowa’s performance was impacted by the drug price cuts undertaken by the Japanese Government in order to control healthcare expenditure. While the compulsory price cuts are expected to remain a regular feature of the Japanese pharmaceutical market, Lupin’s ability to backward integrate at Kyowa and new product launches will help support revenue growth and profitability. In order to further expand its presence in the Japanese market and enter into the injectable segment, Lupin is likely to undertake an acquisition in the near term.
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Key financial ratios which impacts the company: (LUPIN)
Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) Mar '11 34.63 0.31 19.3 18.76 1.09 1.68 0.31 0.07 22.08 19.74 19.75 20.19 20.19 18.03 18.03 21.51 25.69 25.45 70.66 70.66 26.33 Mar '10 27.25 0.36 23.25 20.87 0.96 1.68 0.36 0.06 22.79 20.5 20.58 20.47 20.47 17.52 17.52 22.49 25.64 26.74 284.51 284.51 28.96 Mar '09 12.32 0.69 11.56 10.67 0.83 1.02 0.69 0.28 19.43 17.16 17.18 16 16 14.09 14.09 22.04 30.31 29.6 166.06 166.06 29.14 Mar '08 18.31 0.73 16.27 12.85 0.97 1.63 0.73 0.31 21.01 17.83 18.83 19.46 19.46 16.3 16.3 27.58 33.66 35.93 160.46 160.46 36.38 Mar '07 8.88 0.97 9.01 9.36 1.22 2.02 0.97 0.59 16.79 14.16 16.7 17.18 11.8 14.89 9.52 18.79 34 21.73 110.57 110.57 23.34
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Appendix-III Dr. Reddy Laboratories limited
Threats, Risks and Concerns
Given below are some key threats, risks and concerns. Health care reforms across the globe: Increasingly, healthcare expenses, especially public expenditure, have been the subject of policy-makers’ attention across the globe. Both private and government entities are seeking ways to contain healthcare costs. The consequence has been unanticipated reductions, especially in generics and active ingredient prices. Russia reference pricing: The Russian government’s health care prioritization plan for the pharmaceutical market is making a slow transition from a largely out-of-pocket market to the western European model of centralized reimbursements. Through this, the government will play an active role in regulating market access, particularly for high-cost medicines. The Russian government is extremely focused on regulating price of essential drugs by way of reference pricing, which may impact the Company’s revenues from Russia. Price controls in india: The Government of India through its Drugs (Prices Control) Order, 1995 (DPCO) imposes price controls for specified pharmaceutical products under certain circumstances. Adverse changes in the DPCO list or a widening of the span of price control can affect pricing, and hence, revenues from India. Regulatory and compliance (i.e. rising audit burdens, inspections and fines): In the recent past, the pharmaceutical industry has witnessed rising regulatory and compliance barriers, as seen in increased inspections and warning letters from USFDA. While the Company continues to give top priority to compliance and quality Year-on-Year, an increasing audit burden could impact the business. Proprietary products: Dr. Reddy’s long term research efforts will depend, to a large extent, upon the Company’s ability to successfully patent and commercialize our own NCE molecules and differentiated formulations. There are significant risks of execution, as the process of development; and commercialization of new molecules is time consuming as well as costly. Generics: The Company’s generic business remains challenging due to increased competition in India and Eastern Europe. The segment has inherent risks with regard to patent litigation, product liability, pricing pressure, increasing regulation and compliance Indian Pharma Industry Page 17 of 29
related issues. The business could be negatively impacted if innovator pharmaceutical companies are successful in limiting the use of generics through aggressive legal defense as well as authorized generics deals, development of combination products and over-the-counter switching. In view of the number of patent expiries coming up in the near future, sales of patent expiry drugs in the US as well as in Europe represent significant opportunity for all generics and API manufacturers. However, obtaining 180-days exclusivity is getting increasingly difficult in the US, and the generics market is rapidly becoming commoditized. Foreign exchange fluctuations: Being a global company, the income is exposed to currency rate fluctuations. In 2010-11, the Indian rupee appreciated by approximately 4% vis-à-vis the US dollar, from 47.44 per US$ for the year ending 31 March 2010 to 45.56 per US$ for the year ending 31 March 2011. Appreciation of the Indian rupee may impact top-line growth for Indian companies with higher exposure to the US dollar. The Company has adopted a conservative hedge strategy to protect receivables and part of its anticipated income. Launch at risk: At times, the Company seeks approval to market generic products before the expiration of patents — based on sufficient data that such patents are invalid, unenforceable, or would not be infringed by the Company’s products. As a result, the Company is involved in patent litigation, the negative outcome of which could adversely affect the business. In April 2006, the Company launched, and continues to sell fexofenadine, the generic versionof Allegra®. This is despite the fact that there is an ongoing litigation with the Company that holds the patents for and sells this branded product. In the European Union, the Company also had generic launches that involve ongoing patent litigation, negative outcome of which could adversely affect the business. In Germany, the Company had a launch at risk of oxycodon. A cost sharing agreement has been entered to with the supplier to reimburse part of the losses resulting from any damage claim by innovator. FCPA and other worldwide anti-bribery laws: The Company is subject to the US Foreign Corrupt Practices Act, the UK Bribery Act and similar worldwide anti-bribery laws, which impose restrictions and may carry substantial penalties. These laws generally prohibit companies and their intermediaries from making improper payments to officials for the purpose of obtaining or retaining business, and require not only accurate books and records, but also sufficient controls, policies and processes to ensure business is conducted without the influence of bribery and corruption. The penalties are substantial, including fines, prosecution, potential debarment from public procurement and reputational damage. The Company’s policies mandate strict compliance with these anti-bribery laws. However, given the high level of complexity of these laws, there is a risk that some provisions may be inadvertently breached.
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FINANCIAL RISK MANAGEMENT The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and the Audit Committee is responsible for overseeing Company’s risk assessment and management policies and processes. Reconciliation of the allowance account for credit losses. The details of changes in provision for doubtful debts during the year ended 31 March 2011 and 31 March 2010 are as follows:
The details of changes in provision for doubtful loans and advances to subsidiaries during the year ended 31 March 2011 and 31 March 2010 are as follows:
Credit Risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments. Trade and other receivables The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country, in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants Indian Pharma Industry Page 19 of 29
credit terms in the normal course of business. As at 31 March 2011 and 31 March 2010 the maximum exposure to credit risk in relation to trade and other receivables is Rs.17,705 and Rs.10,605 respectively (net of allowances). Financial assets that are neither past due nor impaired. None of the Company’s cash equivalents, including time deposits with banks, are past due or impaired. Of the total trade receivables, Rs.14,196 as at 31 March 2011 and Rs.8,167 as at 31 March 2010 consists of customers balances which were neither past due nor impaired. Financial assets that are past due but not impaired The Company’s credit period for customers generally ranges from 20 – 180 days. The age analysis of the trade receivables has been considered from the due date of the invoice. The aging of trade receivables that are past due, net of allowance for doubtful receivables, is given below:
Financial assets that is impaired The age analysis of the trade receivables that are impaired is given below:
Loans and advances Loans and advances are predominantly given to subsidiaries for the purpose of working capital and capital expansions; and the Company does not consider any significant exposure to credit risks associated with such financial assets. Liquidity Risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation. Indian Pharma Industry Page 20 of 29
As at 31 March 2011 and 2010, the Company had unutilized credit limits from banks of Rs.13,089 and Rs.7,850, respectively. As at 31 March 2011, the Company had working capital of Rs.23,456 including cash and cash equivalents of Rs.662 and current investments of Rs.3. As at 31 March 2010, the Company had working capital of Rs.14,604, including cash and cash equivalents of Rs.3,680 and current investments of Rs.3,577. The table below provides details regarding the contractual maturities of significant financial liabilities
The table below provides details regarding the contractual maturities of significant financial liabilities
Financial Guarantees Financial guarantees disclosed in Note 2 of Schedule 20 have been provided as counter corporate guarantees to financial institutions and banks that have extended credits and other financial assistance to the Company’s subsidiaries. In this regard, the Company does not foresee any significant credit risk exposure. Market Risk Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates and other market changes that affect market risk-sensitive instruments. Market risk is attributable to all market risk-sensitive financial instruments including foreign currency receivables and payables and long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company’s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies. Foreign Exchange Risk Indian Pharma Industry Page 21 of 29
The Company’s exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in U.S. dollars, British pound sterling and euros) and foreign currency borrowings (in U.S. dollars and euros). A significant portion of the Company’s revenues are in these foreign currencies, while a significant portion of its costs are in Indian rupees. As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company’s revenues measured in rupees may decrease. The exchange rate between the Indian rupee and these foreign currencies has changed substantially in recent periods and may continue to fluctuate substantially in the future. Consequently, the Company uses derivative financial instruments, such as foreign exchange forward and option contracts, to mitigate the risk of changes in foreign currency exchange rates in respect of its forecasted cash flows and trade receivables. In respect of the Company’s forward, option contracts and non-derivative financial liabilities, a 10% decrease / increase in the respective exchange rates of each of the currencies underlying such contracts would have resulted in an approximately Rs.349 increase / decrease in the Company’s hedging reserve and an approximately Rs.1,014 increase / decrease in the Company’s net profit as at 31 March 2011. In respect of the Company’s forward and option contracts, a 10% decrease / increase in the respective exchange rates of each of the currencies underlying such contracts would have resulted in an approximately Rs.821 increase / decrease in the Company’s hedging reserve and an approximately Rs.745 increase / decrease in the Company’s net profit as at 31 March 2010. The following table analyses foreign currency risk from financial instruments as at 31 March 2011:
The following table analyzes foreign currency risk from financial instruments as at 31 March 2010:
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For the year ended 31 March 2011 and 2010, every 10% depreciation / appreciation in the exchange rate between the Indian rupee and the respective currencies in the above mentioned financial assets / liabilities would affect the Company’s net loss / profit by approximately Rs.839 and Rs.488 respectively. Interest rate risk As at 31 March 2011 and 31 March 2010, the Company had foreign currency loans of Rs.5,758 carrying an interest rate of LIBOR plus 52-80 bps and Rs.4,580 carrying an interest rate of LIBOR plus 40-75 bps respectively. Also as at 31 March 2011 and 31 March 2010 the company had an INR loan of Rs.950 carrying an interest rate of 8.75% and Rs.Nil respectively. Since these are short-term loans, the Company does not consider any significant changes in the interest rates and hence, has not entered into any interest rate swaps to hedge its interest rate risk. For the years ended 31 March 2011 and 2010, every 10 basis points increase or decrease in the interest rate applicable to its short-term loan from banks would affect the Company’s net loss / profit by approximately Rs.16 and Rs.2, respectively The Company’s investments in time deposits with banks and short-term liquid mutual funds are for short durations, and therefore do not expose the Company to significant interest rates risk. Commodity rate risk Exposure to market risk with respect to commodity prices primarily arises from the Company’s purchases and sales of active pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients. These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the Company’s raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in the Company’s active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms the largest portion of the Company’s operating expenses. Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies. The Company has historically not entered into any derivative financial instruments or futures contracts to hedge exposure to fluctuations in commodity prices.
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Key financial ratios which impacts the company: (Dr. Reddy)
Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) Mar '11 220.9 0.24 134.85 118.99 1.66 1.91 0.24 23.5 18.31 18.72 21.99 21.99 16.84 16.84 14.2 14.84 14.81 355.69 355.69 16.22 Mar '10 250.76 0.1 79.36 68.99 1.49 1.45 0.1 24.76 18.92 19.7 22.17 22.17 18.48 18.48 15.87 14.3 13.07 350.3 350.3 17.36 Mar '09 53.32 0.12 36.78 29.26 1.85 2.13 0.12 18.95 13.28 14.11 19.1 19.1 13.2 13.2 13.46 10.66 11.37 312.17 312.17 15.08 Mar '08 85.79 0.1 50.33 45.79 1.82 1.94 0.1 17.42 12.01 12.58 17.59 17.59 13.57 13.57 10.55 9.87 9 286.12 286.12 11.54 Mar '07 45.49 0.08 30.8 26.57 2.56 2.81 0.08 35.08 29.43 38.66 32.3 33.5 29.01 29.77 30.79 26.91 27.6 260.45 260.45 33.05
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Appendix-IV Sun Pharma Limited
Threats, Risks and Concerns
Economy-wide Risk: India is known for both its generic drug making capacity and generic drug consumption market. Hence, companies like Sun Pharma with more than 200 patents and APIs to their credit (and this is excluding the 2 acquisitions i.e. Taro & Chattern Pharma) stand only to lose in terms of margins with the rise of generic drug consumption in India. Its market share in India stands at 4.5 % i.e. INR 60000 Cr, and hence the risks will also be proportional. Company Specific Risk: Sun is a debt-free company with the following financial ratios, which show healthy trends of debt-coverage, profitability, low working capital gaps, etc. However, the only non-systemic risk that Sun Pharma has is that it doesn’t hedge a considerable part of its positions in terms of foreign currency receivables, and the difference in market rates w.r.t current rates will be booked as forex losses/profits. (Refer to ratio table for comparative analysis) (Annual report of Sun Pharma) Industry Risk: NPP: This feature is applicable to companies across India and also to Russia off late owing their respective policies to bring prices of Pharmaceuticals under control, especially their generic and API drug sales. (http://pharmaceuticals.gov.in/mshT2810/FTY2.pdf) Tightening regulatory framework in western markets: The USFDA in USA and similar organisations in many countries all across the globe are responsible for maintaining the highest standards of drug making with respect to all drugs manufactured or sold in India. Besides, on the grounds of change in laws regarding mergers and acquisitions, Sun Pharma faced significant trouble regarding its acquiring a controlling stake in Taro Pharma, an Israel based company, owing to different judgements from courts in US and Israel (refer to links below). Such frequent change in rules and regulations can be of concern especially if our large players are to enter the global arena. (http://www.moneycontrol.com/news/business/us-court-rulesfavoursun-pharmatarocase_470096.html) (http://www.financialexpress.com/news/tel-aviv-court-rules-against-sun-pharma-in-tarobattle/563850/) Indian Pharma Industry Page 25 of 29
Erosion of margins in generics: Leading patent players like Sun Pharma, stand to lose a lot of possible revenue owing to the growth of generics market and the intensification of competition in the market. With innumerous patents expiring in the next few years, as the ratio shifts in favour of the generics, the effect of this margin erosion will become more and more evident. (http://sunpharma.com/Apipopup.do) However, thanks to its research arm SPARC (Sun Pharma Advanced Research Company), Sun Pharma retains its edge of introducing new patents and APIs every year at encouraging rate and beat the generic market. Counterfeiting: Counterfeiting is a big challenge in India. While official sources put it at ~10% of the total drugs sold in India, other sources claim that it stands at ~20% of the total drugs market in India. Meanwhile, the fake drugs market in India stands at close to $ 8.5 bn a year, mostly exported to Africa and poorer Latin American countries. Refer (www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&ved=0CGYQtwIwAg&url =http://www.washingtonpost.com/wpdyn/content/article/2010/09/10/AR2010091003435.html&ei=shTXT7PbH83OrQfS7LT8Dw& usg=AFQjCNFVW4Erdv3RRGyONV9DC3-0WgO9-g) Foreign currency fluctuation risk: Transactions denominated in foreign currencies are recorded at the exchange rates that approximate the actual rate prevailing at the date of transaction. Monetary items denominated in foreign currency at the year-end are translated at year end rates. In respect of monetary items which are covered by forward exchange contracts, the difference between the year-end rate and the rate on the date of the contract is recognised as exchange difference and the premium on such forward contracts is recognised over the life of the forward contract. The exchange differences arising on settlement / translation are recognised in the Profit and Loss account. The translation of the financial statements of nonintegral foreign operations is accounted for as under: a) All revenues and expenses are translated at average rate. b) All monetary and non-monetary assets and liabilities are translated at the rate prevailing on the balance sheet. c) Resulting exchange difference is accumulated in Foreign Currency Translation Reserve on Consolidation until the disposal of the net investment in the said non integral foreign operation.
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Obsolesce: With the introduction of new and improved drugs, fast selling and high revenue generating drugs stand the threat of becoming obsolete in no time. Given the said scenario, it is only obvious that constant research and a long line of new products is the only solution to the same. Sun Pharma, while it is not free from such risks completely, is relatively safe, again owing to its advanced research arm.
Key financial ratios which impacts the company: (Sun Pharma)
Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) Mar '11 2,396.92 0.01 2,505.78 2,455.29 3.04 2.68 0.01 -7.9 2.72 4.58 43.19 43.19 42.46 42.46 21 20.71 20.1 64.51 64.51 21.16 -Mar '10 Mar '09 Mar '08 Mar '07 2,228.18 459.14 206.27 67.31 0.01 0 0.02 0.44 2,386.07 480.39 217.36 72.57 2,201.27 479.03 212.49 77.73 2.14 1.52 0.01 --13.63 6.88 9.86 37.78 37.78 33.99 33.99 17.05 15.71 16.25 276.08 276.08 17.14 2.53 2.17 2.52 2.27 0.02 0.02 8.38 4.35 6.01 32.31 32.31 31.01 31.01 24.21 24.09 23.77 203.15 203.15 24.34 5.57 5.25 0.44 0.43 -3.28 -4.28 26.73 28.66 26.24 26.69 24.27 16.83 25.68 23.35 126.58 126.58 16.93
2.91 0.54 0.79 32.24 32.24 31.43 31.43 24.57 24.56 24.05 248.72 248.72 24.68
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Appendix-V Ranbaxy Laboratories Ltd.
Threats, Risks and Concerns
Economy wide risk Ranbaxy Laboratories Ltd. is the largest pharmaceutical company in India and one of the world’s top 100 pharmaceutical companies. Ranbaxy’s total market share is 5% in Indian market. Ranbaxy is specialist in the preparation of generic drugs. The National Pharmaceutical Pricing draft policy, unveiled by the department of pharmaceuticals in October last year, proposes to cap prices of 348 essential medicines and their formulations at an average price of three best-selling brands. Companies like Ranbaxy may have to face margin cuts in future with the expected implementation of National Pharmaceutical Pricing Policy (NPPP).Price caps have the opposite effect, though, by disincentivising the sale of innovative drugs or drug research in India. Company specific risk Ranbaxy has adequate financial flexibility in the form of healthy cash accruals and surplus cash position (Rs.31 billion as on December 31, 2011) to withstand the potential payments with respect to USFDA penalties and potential losses on the currency option contracts. Industry Risk NPPP-2011 In the Indian pharmaceuticals market, prices of certain pharmaceutical products are regulated by the Drug Pricing Policy through the Drug Pricing Control Order, 1995 (DPCO). Ranbaxy has some pending legal cases however the company has obtained orders from the respective Courts in its favor so far. Tightening regulatory framework in western markets The regulatory risks that Ranbaxy faces were manifested in the import alert and warning issued by the US Food and Drugs Administration (FDA) in September 2008, regarding 30 drugs manufactured by Ranbaxy. The actions reflected USFDA’s “concerns” over alleged “deviations” from Good Manufacturing Practice requirements at the company’s facilities in Dewas (Madhya Pradesh) and Paonta Sahib (Himachal Pradesh). In December, 2011, Ranbaxy entered into a consent decree with USFDA for the resolution of affected facilities and has made a provision of Rs.26.5 billion (~USD 500 million) for eventual penalties that the US Department of Justice may levy. Erosion of margins in genericsRanbaxy, however, faces intense competition and pricing pressure in the regulated generics market, where generic players are facing severe price erosions. This is because of the commoditised nature of its products, along with intense competition and significant government pressures to reduce prices. Foreign currency fluctuation risk: Indian Pharma Industry Page 28 of 29
In 2011 (refers to calendar year, January 1 to December 31), international revenues accounted for about 81 per cent of the company’s total revenues. In 2007, Ranbaxy entered into currency options to hedge its export receivables for a period of five to seven years. The company has incurred large marked-to-market losses (MTM) on these contracts because of steep depreciation in the Indian rupee against the US dollar in the past. Ranbaxy reported total MTM losses of Rs.10.9 billion in 2008. However, in 2009 and 2010, the company wrote back some of the MTM losses because of favourable movement in the US dollar to Indian rupee exchange rate. With the depreciation of the rupee in 2011, the company reported MTM losses of Rs.11.2 billion. As on December 31, 2011, Ranbaxy had accumulated notional losses on these option contracts of Rs.22 billion. Given the high value and long-term nature of these contracts and uncertainty on USD/INR exchange rate movement, the company continues to be exposed to foreign currency exchange rate risk on the option contracts.
Key financial ratios which impacts the company: (Ranbaxy)
Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 16.05 22.22 15.24 1.29 3.19 2.25 0.83 0.85 1.05 1.38 20.11 26.44 18.99 2.35 4.46 -38.9 26.41 19.25 -5.11 8.88 0.8 0.9 2.25 0.73 16.66 12.9 13.1 16.92 16.92 -39.11 -39.11 17.81 -158.61 53.97 45.6 45.6 33.5 1.4 1.6 0.83 0.57 22.35 17.77 18.31 16.55 16.55 19.74 19.74 12.82 22.41 14.33 121.74 121.74 15 1.18 0.89 0.85 0.68 13.62 10.31 10.52 4.53 4.53 11.72 11.72 8.03 14.44 1.84 94.16 94.16 9.02 1.16 0.86 1.05 0.8 5.39 2.03 2.07 16.25 16.25 -22.02 -22.02 2.52 -29.5 17.4 84.24 84.24 2.94 0.83 0.97 1.38 0.9 9.31 6.52 7.51 17.08 3.87 14.33 1.12 4.93 24.34 1.9 68.01 68.01 6.19
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