Based on fibonachi extention , is this a good target point ???
ABOUT
Incorporated in 1981, Gujarat Themis Biosyn
Ltd manufactures and sells finished Active Pharmaceutical Ingredients products by fermentation process
KEY POINTS
Business Overview
Company manufactures pharmaceuticals and medicinal chemicals. It is actively managed by Themis Medicare Ltd. (JV company of Gedeon Richter Ltd, Hungary). GTBL entered into Technical & Financial collaboration with Yuhan Corporation, South Korea, and became India’s first Company to start commercial production of the Anti-tuberculosis drug Rifampicin.
Product Profile:
a) Rifamycin-S:
This is an intermediate for manufacturing drug Rifampicin which is an Anti biotic used for the treatment of several types of bacterial infections, including tuberculosis, Myco. bacterium avium complex, leprosy, Legionnaires' disease, and digestive tract infections.
b) Rifamycin O:
It is an intermediate for manufacturing drug Rifaximin which is an Anti biotic used for the treatment of traveler's diarrhea, irritable bowel syndrome, and hepatic encephalopathy.
Manufacturing Capacity:
Company has a production unit at Vapi with an installed capacity for manufacturing up to 16,000 kg/ month.
Capex Timeline
GTBL is setting up a warehouse and an R&D department at its existing plant located at Valsad. The total cost of the project was Rs.32 crore and the company had incurred Rs. 18 crore towards project execution up to July,22.
Currently, the company has expanded the scope of the project by adding more fermenters and setting up an API manufacturing unit at its existing plant. Hence, the total estimated cost of the project has increased to Rs. 183 crs. and the entire project cost is to be funded through internal accruals. The land for the same is already in place and the company has incurred Rs. 30 crs. towards execution of the project through internal accruals up to Jun,23.
There is significant progress in project execution by the company. The API block is expected to be commissioned by Oct,23, which is an essential step to move up in the value chain. The first phase of the R&D center and the CGMP pilot facility block is expected to be commissioned by Dec,23. **The company intends to increase the R&D of the entire project commenced in June 2022 and is expected to be completed by FY26.
Exports:
Company expects Rifaximin to open up in certain parts of Europe in FY23/ FY24; with the rest of the world opening up with the US in FY28-29
Concentration Risk:
Company caters to only 2 customers viz. Lupin Limited contributes ~44% of sales and Optrix Laboratories Private Limited contributes a balance ~56% of sales. The company has a ‘take or pay’ agreement with Optrix which is renewed annually and has a 5 yrs. contract with Lupin. GTBL has also entered into a long-term contract of 5 years with Optimus, the biggest consumer of Rifa O. As per the contract clause, it is on a ‘take or pay’ basis, hence, the company is completely protected in supply.
The supplier profile of the company also remained concentrated, with the top 10 suppliers contributing 83% of the total purchases in FY23 vis-à-vis 70% in FY22.
Share Split
Company undertook a sub-division of equity shares of the Company, having face value Rs. 5/- each into 5 equity shares of face value Re. 1/- each, with effect from 11th October 2023.
Decrease in Promoter Holding
On Dec,23, Pharmaceutical Business Group (India) Limited (PBG), one of the Promoters of the Company, holding 51.15% shares of the Company sold 30,00,000 equity shares held by them on 27.12.23. Further, due to this stake sale by PBG, their shareholding has been diluted to 47.02%, and accordingly, the Company has ceased to be a “Subsidiary” of PBG and now become its Associate Company.
New R&D
The company is focusing on developing new products, and new infrastructure and is in the process of opening a new R&D facility.
Incorporated in 1981, Gujarat Themis Biosyn
Ltd manufactures and sells finished Active Pharmaceutical Ingredients products by fermentation process
KEY POINTS
Business Overview
Company manufactures pharmaceuticals and medicinal chemicals. It is actively managed by Themis Medicare Ltd. (JV company of Gedeon Richter Ltd, Hungary). GTBL entered into Technical & Financial collaboration with Yuhan Corporation, South Korea, and became India’s first Company to start commercial production of the Anti-tuberculosis drug Rifampicin.
Product Profile:
a) Rifamycin-S:
This is an intermediate for manufacturing drug Rifampicin which is an Anti biotic used for the treatment of several types of bacterial infections, including tuberculosis, Myco. bacterium avium complex, leprosy, Legionnaires' disease, and digestive tract infections.
b) Rifamycin O:
It is an intermediate for manufacturing drug Rifaximin which is an Anti biotic used for the treatment of traveler's diarrhea, irritable bowel syndrome, and hepatic encephalopathy.
Manufacturing Capacity:
Company has a production unit at Vapi with an installed capacity for manufacturing up to 16,000 kg/ month.
Capex Timeline
GTBL is setting up a warehouse and an R&D department at its existing plant located at Valsad. The total cost of the project was Rs.32 crore and the company had incurred Rs. 18 crore towards project execution up to July,22.
Currently, the company has expanded the scope of the project by adding more fermenters and setting up an API manufacturing unit at its existing plant. Hence, the total estimated cost of the project has increased to Rs. 183 crs. and the entire project cost is to be funded through internal accruals. The land for the same is already in place and the company has incurred Rs. 30 crs. towards execution of the project through internal accruals up to Jun,23.
There is significant progress in project execution by the company. The API block is expected to be commissioned by Oct,23, which is an essential step to move up in the value chain. The first phase of the R&D center and the CGMP pilot facility block is expected to be commissioned by Dec,23. **The company intends to increase the R&D of the entire project commenced in June 2022 and is expected to be completed by FY26.
Exports:
Company expects Rifaximin to open up in certain parts of Europe in FY23/ FY24; with the rest of the world opening up with the US in FY28-29
Concentration Risk:
Company caters to only 2 customers viz. Lupin Limited contributes ~44% of sales and Optrix Laboratories Private Limited contributes a balance ~56% of sales. The company has a ‘take or pay’ agreement with Optrix which is renewed annually and has a 5 yrs. contract with Lupin. GTBL has also entered into a long-term contract of 5 years with Optimus, the biggest consumer of Rifa O. As per the contract clause, it is on a ‘take or pay’ basis, hence, the company is completely protected in supply.
The supplier profile of the company also remained concentrated, with the top 10 suppliers contributing 83% of the total purchases in FY23 vis-à-vis 70% in FY22.
Share Split
Company undertook a sub-division of equity shares of the Company, having face value Rs. 5/- each into 5 equity shares of face value Re. 1/- each, with effect from 11th October 2023.
Decrease in Promoter Holding
On Dec,23, Pharmaceutical Business Group (India) Limited (PBG), one of the Promoters of the Company, holding 51.15% shares of the Company sold 30,00,000 equity shares held by them on 27.12.23. Further, due to this stake sale by PBG, their shareholding has been diluted to 47.02%, and accordingly, the Company has ceased to be a “Subsidiary” of PBG and now become its Associate Company.
New R&D
The company is focusing on developing new products, and new infrastructure and is in the process of opening a new R&D facility.