BIOSIMILARS...BIG OPPORTUNITY FOR PHARMA...!!!!

Biosimilars are the next big thing for Indian pharma
By: Pallavi Ail | Mumbai | December 27, 2014 1:31 amWhile the US is still ironing out its rules governing generic equivalents of biologic drugs, also known as biosimilars, the Indian market has witnessed nearly 20% annual growth for the year ending November 2014 in the segment.Biologics are drugs whose active ingredients are sourced from living organisms so these products are based on proteins, genes, etc, unlike normal small-molecule drugs where the active ingredient is a chemical.Due to this complex base, biologics are not as easily copied as other drugs and companies that are leading such research in India are the top pharmaceutical firms such as Biocon, Dr Reddy’s,  Lupin and Cadila Healthcare.A recent HSBC report says that biosimilar sales grew 20% annually to Rs 2,000 crore or approximately 2.5% of overall market sales at the end of November 2014. Sales margins on biosimilar drugs range from 20% to 80%, according to analysts. On the other hand, almost 90% to 95% of the innovator price of a drug is eroded when a generic version of a small-molecule drug is launched.With the US drug patent pipeline drying up, it is the high-margin biologics that will sustain sales for Indian companies,  analysts.On December 9, the BSE-listed Cadila announced the launch of a copycat version of AbbVie’s blockbuster biologic, Humira, which targets autoimmune disorders such as rheumatoid arthritis. The drug is touted as world’s top-selling drug with global sales exceeding Rs 1,000 crore in CY13, according to the HSBC report. The biosimilar, named Exemptia, will be marketed as a 40 mg injection administered once every alternate week and launched at one-fifth of Humira’s price of approximately $1,000 per injection.Similarly, in April 2013, Cipla started selling a biosimilar of the rheumatoid arthritis drug Enbrel with a launch price of $100. The price of the drug from the innovator, Amgen, was $133.Biocon’s CANMab, a breast cancer therapy that is a generic of Roche’s Herceptin, was launched in February 2014 with a 25% discount to the innovator price.“While we are excited with novel launches even in emerging markets given better pricing, we believe a significant contribution is far away as the market is still at nascent stage in accepting newer better forms of treatments coming at higher costs,” HSBC analysts wrote.Dr Reddy’s, especially, has the most exposure to biosimilars with approximately 7% or Rs 110 crore of its FY14 India sales originating from biosimilars compared with 3.7% for Cadila and less than 1% for Lupin and Cipla, according to HSBC analysts. “Dr Reddy’s is upping the ante on investing in complex generics as well as more risky areas involving biosimilars and proprietary products,” IDFC analysts wrote in a note dated October 29. “While limited visibility on value unlocking from the aggressive R&D investments in these spaces is a challenge, we see significant value creation possibilities given Dr Reddy’s proven capabilities in these high potential areas.”The European Medicines Agency has approved seven types of biosimilars from 2009 till date, according to data available on its website. None of the companies listed are Indian. In 2014, it approved the a single biosimilar: Sanofi’s insulin glargine therapy for diabetics named Lantus. The US Food and Drug Administration is yet to approve any biosimilar. “Material entry in regulated markets (US, EU) is still 4-5 years away as per our understanding,” HSBC analysts wrote.http://www.financialexpress.com/article/economy/biosimilars-are-the-next-big-thing-for-indian-pharma/23516/

MERRY CHRISTMAS..&..THERMAX

MIND BOGGLING YET…

I WAS AMAZED TO SEE THE PRICE ROCKETED TO CREATE ENOUGH TURBULENCE IN ME.

I BOUGHT 1000 SHARES OF THERMAX FOR Rs 38.65, 15 YEARS BACK,

TODAY, THE PRICE OF THERMAX IS Rs 1050/- OF Rs 2/- FACE VALUE (EQUAL TO Rs 5150/-). IN OTHER WORDS, ONE LAKH INVESTED HAS BECOME MORE THAN 66 LAKHS.

EVEN RECENTLY, 2-3 YEARS BACK, I FOUND MARKSAN AT Rs 2.30 NOW IT IS QUOTING Rs 64/-.

ALSO FOUND MORARJEE TEXTILES AT Rs 7.0 NOW TOUCHED A HIGH OF Rs 61, INDOCOUNT INDUSTRIES AT Rs 7.0 NOW TOUCHED A HIGH OF Rs 390/-.

BUT THE ABOVE THREE WERE JUST MEMORIES BUT NO PARTICIPATION……

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MERRY CHRISTMAS TO YOU & ALL INVESTORS & TRADERS…

RELIANCE-SHALE GAS- WOES & OPPORTUNITIES

New York fracking ban is bad news for RIL, shale gas producersAnalysts say RIL's venture with Chevron will be impactedDev Chatterjee  |  Mumbai  December 20, 2014 Last Updated at 22:49 ISTA ban on fracking by the New York state is a small setback for India’s largest private firm, Reliance Industries, which has invested $7 billion in US shale gas.  
On Thursday, the New York state banned fracking for health reasons. It said fracking, with horizontal drilling and chemical-laced water, could increase the risk of cancer, skin rashes, and upper respiratory tract problems. If the rest of the states in the US follow, it could put billions of dollars of investment at risk.
Analysts say the falling crude oil price is making shale gasunviable. Oil from shale gas assets costs between $50 and $100 a barrel as compared with $10 to 25 a barrel produced by West Asia from conventional methods of exploration.

EMERGING UNSCATHED

On Thursday, the New York state banned fracking for health reasons. It said fracking, with horizontal drilling and chemical-laced water, could increase the risk of cancer, skin rashes, and upper respiratory tract problems Analysts say Reliance Industries will be affected through its 40 per cent venture in Chevron’s Marcellus shale area that runs through parts of the state. Its other shale assets are in Texas and Pennsylvania

Analysts say Reliance Industries will be affected through its 40 per cent venture in Chevron’s Marcellus shale acreage that runs through parts of the state. Its other shale assets are in Texas and Pennsylvania.
“It will have marginal impact at best as Reliance Industries is yet to roll out its proposed $2-billion capital expenditure in the Marcellus region along with Chevron. Moreover, a moratorium since 2008 in the New York state would have meant that the capital expenditure committed so far would also have been done outside the state. The other two ventures with Pioneer and Carrizo are profitable and face no uncertainty,” says P Phani Sekhar, fund manager with Angel Broking.
Reliance Industries has already put its 45 per cent stake in its joint venture at Eagle Ford with Pioneer Natural Resources on the block at a valuation of $4.5 billion. The sale is targeted for conclusion early next year.
When contacted, a Reliance Industries spokesperson said: "The New York fracking ban (now formalised by the governor) was already in place for the last five years. This has no impact on Reliance Industries' activities. It should be seen in the same context as California and several east coast states having banned drilling for decades but it does not affect the rest of the industry. New York has the luxury of not needing shale gas drilling as nearby states such as Pennsylvania and West Virginia produce large excess volumes of gas."
Another worry for analysts is that the returns on capital employed by Reliance Industries’ shale gas investments were three-four per cent in 2013-14. This is estimated to hit double digits by 2021, but falling crude oil prices may change Reliance Industries’ calculations.  
On Friday, the Reliance Industries’ stock was up 2.7 per cent to Rs 900 a share.
Reliance Industries’ earnings per share from US shale gas assets were Rs 0.7 in 2013-14 and were expected to go up to Rs 11.2 by 2021, according to global bank Barclays.
“Earning from US shale, where Reliance has spent $7.4 billion so far, may rise as output increases, but with the steady returns on capital employed at 11-12 per cent, it may not be a key value driver,” Barclays said in a report dated October 8.  
For the first quarter of 2014-15, Reliance Industries’ revenue and Ebitda from the shale gas business were $270 million and $201 million, respectively. But revenue and Ebitda grew slower than volumes on a sequential basis owing to a weakness in gas prices. Analysts have also lowered production estimates based on the Marcellus project though estimates for Pioneer are higher.
Reliance Industries' total investment in the US till July 2014 has been $7.36 billion. The company invested $2.04 billion in buying stakes in three companies and gaining access to 12 trillion cubic feet of reserves.

http://www.business-standard.com/article/companies/new-york-fracking-ban-is-bad-news-for-ril-shale-gas-producers-114122000112_1.html