In today’s briefing:
- Pre-IPO Medbanks Network Technology – Conservative About the Outlook
- Sawai Pharmaceutical: Big Capacity Expansion Planned Amid Supply Shortages to Drive Market Share
- Gland Pharma: Strong Growth Across Geographies to Drive Profitability
Pre-IPO Medbanks Network Technology – Conservative About the Outlook
- For Medbanks, who entered the market from the SMO business and then PBM business, building core competitiveness around this closed loop may be quite challenging.
- The PRS business has growth ceilings; The low margins of PBM and PPS business and the increasing competition make Medbanks difficult to generate solid financial position for future business expansion.
- Therefore, based on the analysis above, we are conservative about this Company’s outlook.
Sawai Pharmaceutical: Big Capacity Expansion Planned Amid Supply Shortages to Drive Market Share
- Sawai Pharmaceutical’s in-house expansion plan, coupled with its recent acquisition of a production facility will enhance annual production capacity by 48% in multiple stages by 2030.
- Capacity expansion will help the company to achieve its aim of market share expansion amid a shortage of generic drug supply in Japan.
- Through H1 FY22, the company has achieved 51% and 58% of full-year’s revenue and core operating profit target for Japan, respectively.
Gland Pharma: Strong Growth Across Geographies to Drive Profitability
- Gland Pharma reported a good set of numbers with revenue for the Q3FY22 growing by 23.7% on a YoY basis
- The strong growth was majorly driven by robust performance in the emerging markets as well as the India market while core markets reported an encouraging 10.5% growth
- We, therefore, recommend a HOLD rating on the stock with a target price of Rs 3,575/share.
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