"The company’s market share in Q3FY18 quarter was 33 percent, which is up 6 percent points compared to what it reported last quarter," Akash Jain, Vice-president, Equity Research at Ajcon Global Services.
Akash Jain
Vice-president, Equity Research
Ajcon Global Services
Strides Shasun witnessed sequential earnings growth in Q3FY18 driven by the performance and the ramp up in the regulated market business. The regulated market business now comprises nearly 80 percent of its portfolio of the total business. Last year was about 60 percent, so the weightage of regulated market business has gone from 60 percent odd, 62 percent odd to close to about 80 percent of its business.
US portfolio now is about 1.5 times last year size and this is driven by both a stable base business and good new product growth. The base US portfolio is built mainly around some strong market share positions that our products continue to enjoy and therefore is relatively well protected against price erosion. Again, it has a niche portfolio so the price erosion that is being talked about in the industry is perhaps less relevant for its portfolio.
The company’s market share in Q3FY18 quarter was 33 percent, which is up 6 percent points compared to what it reported last quarter, which was 27 percent and for a product like this, the management does not see any price erosion.
Cumulatively, the company has filed 74 ANDA applications of which 44 have been approved and of the 44 it has received 12 approvals in FY18. The management is of the view that it would like to launch most of its new product approvals into the market as quickly as possible and is doing that in a majority of cases, but it is also being disciplined about ensuring that the timing of launch of these products is based on the market and the pricing and the margin scenarios and while time to market is important. The company also believes timing to market is important to ensure that it has a profitable portfolio.
We can expect a future price of Rs 788 in this counter in 9 -12 months.
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