Company manufactures APIs and
formulations across diverse therapeutic segments and has a strong marketing
presence across regulated and emerging markets. Vivimed partners with leading
global pharmaceutical companies for custom manufacturing (CMO) assignments
for APIs and generic formulations. It is associated with companies like
Novartis, CIPLA, Wockhardt etc. and ~55-60% manufacturing capacity is used
for contract manufacturing (gets fixed margins). Company is planning to
reduce exposure of CMO (currently ~30% of pharma revenue; EBITDAM 16-18%) and
focus on high margin API/formulation business.
Company manufactures APIs across
15+ therapeutic segments from three facilities (in Spain and Mexico).
Anti-ulcer is a key therapeutic segment followed by anthelmintic,
antidepressants, anti-infectives, anti-HIV etc. Company has relationships
with 100+ customers across 70 countries and has filed 50+ DMFs with the USFDA
and 150+ active DMFs worldwide. Vivimed has received ANDA for five products
in US and it has commercialized 4 products namely Losartan, Donepezil,
Amlodipine and Metronidazole. With increasing ANDA product launches,
Alathur capacity utilization is expected to jump ~55-60% by FY18 vizaviz
current ~35% utilization. In spite of competitive market, management expects
steady (10- 15%) growth from formulation business. Vivimed plans to focus on
molecules going off patent in FY18-19 and has 5-6 molecules in pipeline which
will be commercialized in next 2-3 years.
The company had two facilities for
Speciality Chemicals, Hyderabad and Bidar, of which Hyderabad facility will
be transferred to Clariant post the sale of a portion of a speciality
chemical business. Company has retained niche business like photochromic,
imaging chemicals, anti-microbial, hair colour etc. Vivimed is in advanced
talks with Japanese client for supplying key photochromic products. Company
expects significant revenue contribution from photochromic with premium
margins (~45-50%) in coming years. Vivimed has long standing relationships
with companies like P&G, L'Oreal, Johnson& Johnson etc. for hair dyes
and microbial segment. Company is working on complete range of photochromic
products and other hair/shampoo related products to expand product/consumer base
in coming years.
Highlights the fact:
1)Company has 11 manufacturing plants (eight domestic and three
overseas) across three continents.
speciality chemicals, company has retained niche business like photochromic,
imaging chemicals, anti-microbial, hair colour etc. to drive growth and
planning to reduce exposure of CMO (currently ~30% of pharma revenue; EBITDAM
16-18%) and focus on high margin API/formulation business.
received ANDA for five products in US and it has commercialized 4 products
namely Losartan, Donepezil, Amlodipine and Metronidazole.
plans to focus on molecules going off patent in FY18-19 and has 5-6 molecules
in pipeline which will be commercialized in next 2-3 years.
The stock is currently trading above 50 days and 100 days,
moving average that is all about good bullish& uptrend signal on daily
base. RSI &MFI is present at 66 and 74respectivally, which is sideways&
showing the uptrend formation for the short term period. The stock is
currently in uptrend and now someupside is expecting with major support is
found 90level. MACD line is greaterthen signal line 10 day Avg Volume is very