Laurus Labs:
A thread about its business model & growth Potential (1/11)
@unseenvalue @arpit971 https://twitter.com/unseenvalue/status/1279764247434706949

Laurus Labs has 3 segments Formulation (825cr), API(1621 cr) & Synthesis/CDMO (385cr)
It has 6 manufacturing facility & 1 Pre-commercialisation facility (2/11)

API:
Commercialized 60+ products, 60 DMFs filed

ARV division growth will be driven by Incremental HIV patients addition & Introduction of new Second Line products (Lopinavir, Ritonavir & Darunavir) (3/11)

Has Large capacity for 2 first line products Lamivudine & Dolutegravir, commercial supplies will be started based on the regular approvals by our partners.
Expect healthy revenue from ARV division from H2 FY2021 onwards (4/11)

Oncology division did backward integration and expect the revenue should be normal in H1 FY2021 onwards
Other APIs include Anti Diabetic, CVS, CNS & PPIs.
(5/11)

Have roughly 4 million liters (4000 KL) of reactor volumes and increasing that to 5 million liters in the next 12 months. Coming two phases. 500 KL by October-November and another 500 KL by February-March next year (6/11)

Formulation:
Filed 26 ANDAs with USFDA and 6 Final approvals and 5 tentative approvals In addition completed 2 products validation (7/11)

Hydroxychloroquine launched in March 2020 in US by our partner.
Pregabalin is sold in US by our partner with good market share.
Expect the approvals for two of our key filings TLE400 and TLE600 in the coming quarters. (8/11)

Formulation expansion two stage, debottlenecking project by September, 2020, Brownfield expansion project operational by mid of the FY2022. (9/11)

CDMO:
This segment is growing rapidly and expect to continue, creating separate subsidiary.
Digoxin API validation completed.
Dedicated manufacturing with 125 KL Capacity for Aspen.
Set up a dedicated block in Unit 4 for global partner , C2 Pharma (10/11)

As business is going through expansion, it does not generate free cash flow. So, management's intention to share profit with minority is not fully known yet. Promoter has history of pledged share, salary hike was almost 100% in FY 20 (11/11)