As we celebrate 20 years, we look back with a sense of pride at how
much we have achieved over the last two decades, growing from a
fledgling enterprise to one that is respected globally.
In the life of any individual, the first twenty years are significant.
It is the period when one grows from total dependence on others to
taking ones first steps, finding ones way around and finally reaching
adulthood and maturity, ready to take on the world. In the challenging
journey through life, one accomplishes multiple milestones and eaves
behind inspiring imprints for future generations.
The same with Strides. Today, as we celebrate 20 years, we look back
with a sense of pride at how much we have achieved over the last two
decades, growing from a fledgling enterprise to one that is respected
globally. The partnerships that we have built along the way testify our
commitment to excellence. Today, we are ready for a credible growth
trajectory, leveraging emerging global opportunities.
The global pharmaceutical industry is witnessing an evolution in
strategy and operations against the backdrop of an increasingly
integrating world. Integrating in terms of markets, knowledge,
infrastructure and regulatory compliance. The catalyst behind this
integration is discovering unknown synergies. We have been consistently
taking advantage of these value streams to drive growth. Value streams
of partnerships, multi- locational facilities, research and development
and above all our people. These synergies have enabled us to widen our
visibility in multiple domains. Our partnerships are now
multi-dimensional: strategic, research and development- oriented and
even regulatory. Our growth momentum is driven by both specialty and
pharma businesses, supported by a strong licensing income. We also want
to emerge as a major player in branded pharmaceutical business.
Agila represents our prime focus and reflects our objective to emerge
as a significant player in the sterile segment. Sterile injectables
constitute 46% of the total drug shortage in the USA. This is primarily
due to process complexity and relatively long gestation, with very few
players having the capability to make sterile injectable products. We
are consistently developing a pipeline for drugs, which are part of the
FDA shortage list.
A significant portion of our revenue will be allocated for the
manufacture of specialised sterile products (US-patented products whose
patents will expire by 2015).
Moving up the value chain
We acquired 70% stake in Inbiopro Solutions, a Bangalore-based
biotechnology firm. This acquisition marks our foray into biologics,
strengthening our offering in the Specialty segment. This acquisition
will enable us to leapfrog in the fast growing and complex
biopharmaceutical industry, without having to start from scratch. A
decidedly significant advantage in the oncology domain would be
providing opportunities for licensing income in the coming years.
In FY2010, we enhanced our revenue to Rs.17,655 Million, compared with
Rs.13,283 Million in FY2009. We launched new products, increased
licensing income and strengthened partnerships. Strides Arcolabs
EBITDA was Rs.3,963 Million in FY2010, compared to Rs.2,105 Million in
the last fiscal, and a net profit of Rs.1,224 Million in FY2010 against
Rs.1,097 Million in FY2009. We also successfully placed USD 100 Million
(Rs.4,550 Million) QIP in FY2010.
We have now the experience, capability and the commitment to scale the
next altitude. We have already begun our preparations to make it a
reality and have identified our set of priorities:
.Encourage filings in various regulated markets through research and
.Develop our value chain, along with partners in emerging markets like
Africa, Brazil, India, Indonesia and Turkey, among others
.Enhance focus on Specialty business for regulated markets through
.Concentrate more on non-Specialty segment for emerging markets,
catering to the end customer through our own distribution network
.Drive organic growth in the UK, Canada, Indonesia and Turkey
.Upgrade operational facilities and supply chain capabilities
We want to be positioned as an innovation-focused organization to make
affordable drugs for people across the world. We are living in exciting
times when global growth is driven by developing economies. Hundreds of
thousands of more people are breaking the shackles of poverty and
backwardness in these countries with the hope for a better quality of
life. At Strides, we are committed to deliver, while continuing with
our partnership and research capabilities to access new markets to
spread the message of wellness.