Categories Concall Highlights, Earnings, Health Care

Marksans Pharma Limited Q1 FY23 Earnings Conference Call Insights

Key highlights from Marksans Pharma Limited (MARKSANS) Q1 FY23 Earnings Concall

Management Update:

  • MARKSANS said it aims to increase its R&D spend to 4-5% of sales over the coming years. The company also plans to expand its capacities over the next 12-18 months which would help expand margins in the near future.

Q&A Highlights:

  • Manoj Jacob asked if the increase in turnover YonY is due to the additional capacity in the Goa plant and what’s the turnover outlook. Mark Saldanha MD replied that the increase in sales is proportionate to the capacity. Also, the company expects to maintain this trend for the current year. The company also has plans to increase capacity further in the next 12-18 months.
  • Manoj Jacob also enquired when the company expects the API to come online. Mark Saldanha MD answered that API is expected a bit longer than initially planned. MARKSANS expects to file at least 2 DMFs in CY22 and 3 in FY23.
  • Yokesh Tiwari of Arihant Capital asked about the pricing environment in the US currently.  Mark Saldanha MD answered that it’s showing a bit of a moderation. Now with raw material prices tapering down, it won’t go back to the old number two years back. However said, challenges remain in the US.
  • Yokesh Tiwari of Arihant Capital enquired if any consolidation is happening in the oral solids in the US due to the challenging environment. Mark Saldanha MD said that consolidation is not happening from the company standpoint. However, consolidation is happening in the distribution channel that’s impacting the demand and supply situation.
  • Prerit Choudhary from Green Portfolio asked about the reason for fall in revenue QonQ in Australia and New Zeland. Jitendra Sharma CFO answered that last quarter, there was bit of incremental demand on pain management in Australia on account of COVID fair up. But from 1Q23, it’s stabilizing.
  • Prerit Choudhary from Green Portfolio asked about the current growth plans and timelines. Mark Saldanha MD replied that acquisition and M&As are very unpredictable. MARKSANS is focusing on expanding geographies and footprints. Presently there is nothing much to say about acquisitions.
  • Sachin Kasera  with Svan Investment asked about the timeframe of increase in R&D spend from 2% to 4-5%. Mark Saldanha MD answered that the spend is going to gradually increase in the next two years. MARKSANS is planning to invest into more complex molecules.

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