Themis
Medicare Limited (Themis) was incorporated in 1969; it is a
joint venture pharmaceutical company with Gedeon
Richter Ltd., Hungary
(http://www.richter.hu/en-US/Pages/default.aspx)
. The company was originally known as Themis
Chemicals Ltd, before changing its name to Themis Medicare in 2001.
Themis
operates mainly in two segments – Bulk Drugs / Active Pharmaceutical
Ingredients (APIs) and Formulations. With its manufacturing plants in Vapi,
Hyderabad and Haridwar the company produces a wide range of bulk drugs,
formulations and biotech products.
The company has
products across different therapeutic areas : Anti-tuberculosis,
Anti-malarials, Anaesthetics, Anti-Haemorrhoidal, Cardiology, Pain Management,
Anti-infectives, Haematinics and Health & Nutrition etc.
Some of the
companies key brands include E Mal
(Malaria), Sepgard (Wounds /
Bleeding), Instanac (Pain Relief),
Acejet, Etojet, Dexem, Palonosetron, Themiset, Ketmin, Medzol, Bupicain,
Neotagmin, Atacurium, Malither, Tiostat, Ezee etc.
In the API
segment, the company manufactures Simvastatin, Ethambutol, Artemether,
Artesunate, Lumefantrine, Methyl Cobalamine, Di Methyl Isosorbide, etc
Performance
- Last 5 years :
|
Consolidated
|
2009-10
|
2010-11
|
2011-12
|
2012-13
|
2013-14
|
|
Sales
(Rs Cr)
|
229.37
|
252.17
|
157.64
|
173.50
|
195.07
|
|
PAT
(Rs Cr)
|
20.59
|
9.98
|
-33.78
|
-4.77
|
2.35
|
|
Diluted
EPS (Rs)
|
25.57
|
12.40
|
-41.97
|
-5.39
|
2.65
|
Themis
suffered a major set-back in 2011-12
wherein they had to stop supplies to one of their major export customers due to
certain problems. At the same time stiff competition in the bulk drug (APIs)
market from local & Chinese firms also hit the company hard.
Management identified
the reasons for the set-back & decided to implement various steps to
resolve the situation, such as :
·
Too change the Bulk drugs (APIs) –
Formulations mix in favour of Formulations & finished dozes gradually,
where profit margins are better and competition is less fierce, by introducing
new formulations.
·
Upgrade the API plants
·
Implement cost-cutting strategies
·
Better inventory control & credit control
·
Develop Institutional business
·
Export to new geographies
·
Revive & re-establish their brands
in the market
Looking at the
improvement in the financials over the last couple of years, it appears that the
medicine has started to work, and the patient is on the way to a full recovery.
Positive
Developments over the last 2 years :
·
2013 : Themis tied up with Beta Healthcare International Limited (an
Aspen Group Company) for marketing
of Research based Pharmaceutical Formulations manufactured by the company in
Sub-Saharan Africa Region. The products to be marketed encompass Therapeutic
Groups like Anti-Malarial, Pain Management etc
·
2013 :
License and Supply Agreement entered between Themis and Novartis India
Limited (“Novartis”) in March, 2013 whereby Themis agreed to supply Diclofenac topical gel formulated using a
unique TPM™ Transdermal Drug
Delivery . TPM™ (Targeted Penetration
Matrix) Transdermal Drug Delivery has been licenced from
Phospagenics Ltd (“Phosphagenics”) ,
Australia (website : www.phosphagenics.com).
Read the Phosphagenics announcement here : http://goo.gl/adkmXW
·
2013
: Break through development of
Diclofenac 75 mg / ml injection using patented technology and signing of a Supply
& Distribution Agreement between Themis
and Novartis in Aug 2013 for manufacture and supply of Diclofenac Sodium
75 mg / ml Injection as a finished dosage product for the Indian market, wherein
Novartis has agreed long term
exclusive purchase of this product from Themis
·
2014 : Commencement of supply to Novartis of Diclofenac Topical Gel using TPM™ Transdermal Drug Delivery System in finished dosage
pharmaceutical form under the brand name “VOVERAN
TPM gel”. Launch of Themis’ own Diclofenac product “Instanac TPM gel” using the TPM™ technology. Read the Phosphagenics announcement
here : http://goo.gl/ntWgGV
·
2014 (14th
July) : Themis announces the
commencement of production, marketing and sales of Aquadol Spass 1 ml Injection, developed by the company. Aquadol Injection is used by
Urologists, Gastroenterologists, General Surgeons, General Practitioners etc
and is used mainly for treating patients suffering from colic pain and spasm.
Company says the product has export potential & presents a licensing opportunity.
Company also announces plans to come up with an oral tablet formulation under
the name of Aquadol tablet .
In Brief :
Themis
Medicare Ltd
BSE Code : 530199, NSE Code : THEMISMED
Equity : 8.45 Cr
CMP :Rs 97.50 (closing, BSE, 30th June,
2014)
MCap : 82.39 Cr
Conclusion
& Recommendation :
Every company goes
through difficult periods, how they deal with it is what differentiates good
companies from the average ones.
After suffering a major
setback in 2011-12, Themis
management correctly diagnosed the ailment & set about healing itself with
the right prescription. The results have started to trickle through.
Moreover, the tie-ups
entered into over the last 2 years have
also started to be commercialized & this should add impetus to the
improving trend.
Promoters have also
increased their stake over the last couple of years through a preferential
issue as well as through market purchases, which gives additional comfort.
This author
reckons that the worst is over for the
company & the company is now on the right track. He therefore recommends
readers of this blog to study & track the company going forward. Readers may take an appropriate call based on
their own conviction in this idea, after proper research.
Author
:
Bosco Menezes
Recommendation
Date : 30.06.2014
Disclaimer/Disclosure
:
At the time of writing
this article the author has a position in the stock covered by this report. The
author or any of his dependent family members may make purchases or sales of
the securities mentioned in the report while the report is in circulation.
Readers/recipients of this report are strongly advised to do their strict due
diligence, and should be aware that the value of investments can go down as
well as up. The author shall not be liable for any direct or indirect losses
arising from the use of the contents of this report, and readers are therefore
cautioned to use the information contained herein at their own risk. In fact,
readers would do well to seek the advice of a qualified independent advisor.
The author certifies that all of the views expressed in this report accurately
reflect his personal views about the subject company at the time of writing
this report. Feedback / brickbats may be hurled at the author at boscom@gmail.com
