BSE LiveFeb 28, 14:02
Bid Price (Qty.)
Offer Price (Qty.)
NSE LiveFeb 28, 14:02
Bid Price (Qty.)
Offer Price (Qty.)
It is with great pleasure that I present to you SeQuent''s Annual Report for the first time, as India''s largest pure-play animal health company. I will like to take a step back and review the journey that we have undertaken to become what we are today.
We are in the fourth year of our strategy of creating a valuable business in the space of animal health. In this short span of time, Alivira has emerged as the largest and the first global Indian animal health company with annual revenue of US$ 150 million. In these four years, we have successfully transitioned from India-centric operations to global outreach, from being an API-led business to a formulation-led business. We are now following a regulated, market-driven strategy as well. We have completed and integrated nine strategic acquisitions globally and are proud to have built the first and the only USFDA-approved animal health API
plant in India.
We have the largest API filings in the US among all generic companies globally, which puts us in a strong position in the dramatically changing dynamics in the API business. Over 90% of our revenues come from outside India, and we have manufacturing operations in Spain, Brazil, Germany and Turkey apart from India. Our major R&D initiative is carried out in India and Spain. We have a well-crafted R&D pipeline, based on the depth and spread of our experience in the segment. This shall provide us a significant edge in the coming years, as the sector is plagued by lack of industry intelligence, impacting growth strategies.
To put the matter in perspective, SeQuent was about Rs,4,200 million business in 2014 with animal health business less than Rs,2,000 million. We then decided to concentrate our energies on animal health, a small niche area of global pharma business characterised by limited Indian competition and a tightening regulatory environment.
This transformation was led by the understanding that while the Indian pharmaceutical industry has made a mark globally with a well-oiled R&D engine, manufacturing cost arbitrage and a large talent pool, these advantages were not unique but common to the sector as a whole. The animal health industry, on the other hand, being a branded generics market with fewer patents and limited pricing pressures, allows for creating strong differentiators through strategic sales and marketing while benefiting from regulatory barriers to entry. Therefore not surprisingly, the animal health industry enjoys better sustainable margins and thereby better valuation, globally.
To begin with, we subsidiarised our animal health business and gave it a new and distinct identity, Alivira. We also retained the human API business as we could foresee the changing dynamics around this industry, and all other businesses were either divested or closed-down. Having scaled up our human API business, and with the changing dynamics beginning to play out, we recently demerged our human API business to create a distinct and large human API business of Solara Active Pharma Sciences, which got listed separately.
We are enthused by the future prospects of Solara and we believe that you as shareholders shall reap great benefits in the times to come.
Animal health business is a lot about building brands. In that respect, it is similar to the FMCG business. Keeping this in view, we first focused on building last-mile connectivity through a series of strategic acquisitions. Each of these acquisitions reinforced our market presence and also helped strengthen our management team. Our first acquisition was in 2015, since then we have made a series of well strategised acquisitions, including the latest one in Germany (Bremer), which adds injectables to our portfolio.
These acquisitions created a footprint for Alivira in the European Union market as well as the key markets of Mexico and Brazil. This strategy has helped us establish a strong formulations business with presence in key markets of Europe, Latin America, India, Turkey and parts of Africa and Southeast Asia. Today, we sell our products in over 100 countries.
We are now moving into the next phase of value creation, which will be driven by our expanding R&D pipeline in FDFs. We are working on a portfolio of over 35 products at this stage, which has been bolstered by our recent
acquisition of Bremer, enabling us to execute a comprehensive injectable strategy. We have established strong R&D capabilities in India and Spain, aided by ancillary R&D centres in Turkey and Brazil. This is further supported by our manufacturing footprint in Turkey, Brazil and Germany, apart from India and Spain.
Our global teams have played a pivotal role in our progress and evolution. Their experience and expertise remain the cornerstone of our success. Our teams bring on board relentless focus on execution and have been steadily improving our operational performance over last few years. We still have a long way to go, but I strongly believe that we have laid a robust foundation and are well-poised to achieve our vision.
In our first year as a pure-play animal health company,
I take this opportunity to thank our growing fraternity of customers, business partners, shareholders and regulators for their continued support and conviction in our ability to deliver now and in the coming years.
The pure-play animal health business has huge strategic value and we are inspired to make the most of unfolding opportunities.