Claris Lifesciences Ltd is One of the largest pure-play sterile generic injectable companies in India . The company has a Global business with sales in 90+ countries.The company has three Manufacturing plants and manufactures and markets products across multiple delivery systems, products ranges in multiple therapeutic segments including anesthesia, blood products, anti-infectives, and plasma volume expanders. The company is a leader in sterile generic injectible business and has come out with good set of quarterly numbers for the the period Q2FY17. Market Price on 8th Dec 2016: Rs. 309
Claris Lifesciences Inc. is a wholly-owned subsidiary of Claris Lifesciences Ltd. The company, headquartered in New Jersey, USA, has full-fledged presence to cater to the growing demands of hospitals and medical professionals for injectable products. It aims to build a large portfolio of high-end quality and technologically-complex injectable products. The Manufacturing process for these injectable products is technology intensive and company has an enviable record in this field.
Claris LifeSciences is likely to get through USFDA hurdles in case of Iron Sucrose. Approval for both Iron Sucrose and Diprivan generics is expected by the company in the US by FY18.The company has been churning out good results and Q2FY17 results have been announced in 8th December
Financials :
Consolidated Quarterly Results ( Rs. Crore)
| Particulars | Sep-16 | Jun-16 | Mar-16 | Dec-15 | Sep-15 |
| Gross Sales | 192.13 | 197.67 | 166.76 | 192.07 | 193.39 |
| Total Income | 201.26 | 213.78 | 175.45 | 206.98 | 218.01 |
| Total Expenditure | 145.07 | 155.64 | 140.33 | 160.91 | 184.47 |
| EBIDT | 56.18 | 58.14 | 35.12 | 46.08 | 33.55 |
| Interest | 10.65 | 11.12 | 10.9 | 10.37 | 11.28 |
| EBDT | 45.53 | 47.02 | 24.22 | 35.71 | 22.27 |
| Depreciation | 4.11 | 10.93 | 10.94 | 10.88 | 4.03 |
| Tax | 5.73 | 11.58 | 6.35 | 8.93 | 4.3 |
| Profit After Tax | 35.69 | 24.51 | 6.93 | 15.9 | 13.94 |
| Net Profit after Minority Interest | 32.39 | 22 | 3.57 | -68.87 | 12 |
| EPS (Unit Curr.) | 5.93 | 4.03 | 0.65 | -12.62 | 2.2 |
| Equity | 54.57 | 54.57 | 54.57 | 54.57 | 54.57 |
| EBIDT Margin | 29.24% | 29.41% | 21.06% | 23.99% | 17.35% |
| Net Profit Margin | 18.58% | 12.40% | 4.16% | 8.28% | 7.21% |
Consolidated EDIDTA has grown by 65% in the quarter while margins have increased to 29% from 17%(yoy)
Consolidated Net profit Margin has improved to 18%
SPECIALITY INJECTABLE BUSINESS : Total Sales Breakup by Territory
| (Rs. Cr.) | |||
| Region | Q2FY17 | Q2FY16 | Growth |
| US Markets | 127 | 81 | 56.79% |
| Other Regulated (Ех US) – ORM | 34 | 26 | 30.77% |
| Emerging Markets | 30 | 40 | -25.00% |
| Total Sales | 191 | 147 |
Assessment :
- Claris Lifesciences (CLL) is one of the largest pure play specialty generic injectable companies in India. It is one of the few and also large manufacturer of complex injectable products like Diprivan and Iron Sucrose in the world.
- The company has demonstrated competitive strengths in the sterile injectable space.
- The General Injectible products manufactured by the compnay have high entry barriers and are charterised by Long gestation period. As a result many times there are less than 5 competitors for 70% of the products and even some products exhibit shortages in the USA
- In Q2Fy17 Operating profit margins and Net Profit Margins have shown robust growth yoy
- In Q2Fy17 Sales in US has shown robust 57% growth, while 31% growth in Other regulated markets has been provided mainly by UK & France.
- Claris Life is likely to get through USFDA hurdles in case of Iron Sucrose. Approval for both Iron Sucrose and Diprivan generics is expected by the company in the US by FY18.
- Claris Life has received approval for 16 ANDAs in the US out of which it launched 13 and market share of the company in these 13 ANDAs is close to 25%. This demonstrated the prowess of company in this sterile injectible field.
- Claris Life sciences is targeting 30% annual growth over the next three years in the US market . Emerging markets may grow slower while Europe and other regulated markets are expected to post 15% growth
- The company is in a niche area, has demonstrated innovation, has good growth prospects & is priced fairly
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