Claris Lifesciences Ltd: Quick Note


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

Standard disclaimer:  I am not a SEBI registered analyst. I may have vested interest in every stock I discuss. Please do your own due diligence as stock market investments have high degree of inherent risk.




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