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Aug 05, 2010, 05.50 PM IST | Source: CNBC-TV18

Oncology biz to grow 250% this year: Parenteral Drugs

Parental Drugs intends to focus on formulations and oncology outside of its more profitable intravenous fluids business. Its revenues are expected to be boosted with its tie-up with New Delhi's Jawaharlal Nehru University for research and development of DNA based anti-rabies vaccine.

Anil Mittal, CEO, Parenteral Drugs

Pharmaceutical company Parenteral Drugs has opened new facilities at Nairobi, Kazakhstan and the Czech Republic. The current capacity of its plants are 1.2 million bottles per day.

The drug firm has also received necessary approvals from the Drug Controller General of India to manufacture intravenous (IV) fluids with Paracetamol. It sees the IV fluids segment fuelling growth going forward. The company is also looking to up its average realisation per bottle to Rs 12-13. It had also set up joint ventures in Mauritius and Kazakhstan to manufacture IV fluids earlier.

With a focus on diversifying its operations, it intends to concentrate on formulations and oncology over the next few years. Its revenues are expected to be boosted with its tie-up with New Delhi's Jawaharlal Nehru University for research and development of DNA based anti-rabies vaccine. The vaccine is ready at the laboratory stage, but is still undergoing testing and clinical trials. The company has plans to launch this vaccine in mid to end of 2010. The stock had touched 52-week highs in intraday trade today.

In an interview with CNBC-TV18, Anil Mittal, CEO, Parenteral Drugs spoke about the company's business plans going forward.

Below is a verbatim transcript. Also watch the accompanying video.

Q: Start off by telling us if there is something that the shareholders are missing because the stock seems to be seeing new highs everyday?

A: Basically till about 3–4 years back, it was mostly an IV fluid company. In the last three or four years we have shifted our focus from just being an IV fluid manufacturer to being a manufacturer of a complete range of products. From formulations we have gone onto oncology and to critical care division.

Last year our IV fluid turnover as a part of our topline was less than 50% and this is expected to go down to less than 35% in the current year. The growth drivers going forward will be our formulation division, the oncology division and the critical care division which has been launched in the first quarter of this year.

Parenteral Drug stock price

On August 22, 2014, Parenteral Drugs (India) closed at Rs 28.30, down Rs 0.1, or 0.35 percent. The 52-week high of the share was Rs 59.00 and the 52-week low was Rs 24.15.


The latest book value of the company is Rs 47.60 per share. At current value, the price-to-book value of the company was 0.59.

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