Key highlights from Marksans Pharma Limited (MARKSANS) Q2 FY23 Earnings Concall
Q&A Highlights:
- [00:12:45] Madhav Shastri asked about the new acquisition made of Teva Pharma, and the expected capex on the facility. Mark Saldanha MD clarified that the amount the company plans to spend including the acquisition cost and capex is INR200 crore.
- [00:13:36] Madhav Shastri asked about the plans for the US market. Mark Saldanha MD replied that the company will have to get the plant registered in the US, but also plan to utilize infrastructure for both US and Europe.
- [00:18:28] Prerit Choudhary from Green Portfolio asked that once MARKSANS start making the API, if it’s planned to sell it to the outside market or captive consumption. Mark Saldanha MD answered that it’s only for captive consumption.
- [00:19:14] Prerit Choudhary from Green Portfolio asked about the use of restricted cash balance of INR18 crore. Jitendra Sharma CFO replied that the amount is into escrow account kept towards the buyback of shares, which is going on right now.
- [00:20:30] Nitin Agarwal with DAM Capital enquired about filing target in the US for the next couple of years. Mark Saldanha MD answered that the company is working on close to about 30 products right now and is expecting approvals every year, with 2023 seeing 5 ANDAs getting approved. And on an avg. 7-8 product approval per year.
- [00:21:21] Nitin Agarwal with DAM Capital also asked about the split between OTC and Rx products in the expected approvals. Mark Saldanha MD answered that probably about 65-70% will be in OTC and balance in Rx.
- [00:29:00] Agastya Dave from CAO Capital asked when the margins can be expected going to the 20% level for the entire portfolio for MARKSANS as a whole. Mark Saldanha MD replied that the company is doing better now at 17%. So with input cost price reduction and freight cost coming down, if the current trend continues, the 20% number can be expected next year.
- [00:32:28] Agastya Dave from CAO Capital asked about the backward integration project. Mark Saldanha MD answered that it has been a longer project than planned. MARKSANS is planning to file couple of DMFs in the mid of 2023 where there is captive consumption and growth is by strength.
- [00:32:28] Agastya Dave from CAO Capital asked about any progress on the acquisition in the front end in the EU markets. Mark Saldanha MD replied that it is still pursuing that part and plans to expand in its geographies. MARKSANS is also exploring different M&As and have been in active dialogs for last 6 months.
- [00:35:07] Manuj Mathew enquired if the buyback is over. Mark Saldanha MD said the company has completed about 50% plus of the buyback, but it’s not over.
- [00:38:19] Manuj Mathew asked that as of today’s capacity what volume is expected from Teva. Mark Saldanha MD answered that from April, the Teva capacity is not very large, about 1.5 billion tablets, and about INR200 crores per quarter can be achieved once the objective of increasing capacity is met.
- [00:44:50] Utsav of DAM Capital asked about the company’s plans in the Australia and RoW markets. Mark Saldanha MD said Australia was challenging in terms of pricing pressure but MARKSANS expects this market to grow and it has evolved. In RoW, the company expects to double its revenue in next couple of years.