Aanjaneya Lifecare Set To Join Hands With Japanese Pharma Major For Breakthrough Anti-MalarialMolecu

PRLog (Press Release) - Mar. 5, 2013 - The WHO's World Malaria Report 2012 said a concerted effort by endemic countries, donors and global malaria partners during the past decade has led to strengthened malaria control around the world. It however warned that a significant slowdown in global funding. Mumbai-based Aanjaneya Lifecare Limited Aanjaneya Lifecare having a significant presence in this segment, is the world’s third-largest manufacturer of quinine salts and the second-largest in India. Only nine companies globally manufacture quinine salts. Aanjaneya is only the second company to receive WHO prequalification for its anti-malarial APIs and formulations, is inching closer to a breakthrough research in the form of a Molecule in Research Partnership for collaborative marketing with a leading Japanese Pharma Major. If sources are tobe believed than the that the drug which has a 10 tears of Research  could cure all strains of malaria with a single oral dose and also block transmission of the deadly parasite from person to person. It may be noted here that Of the four major types of malarial parasites, it is plasmodium falciparum, carried by the female anopheles mosquito, which causes about 90 per cent of the malaria deaths. Synriam, is intended to combat falciparum malaria, has two major advantages over other drugs like chloroquine. Its dosage regimen is just one tablet for three days, while other drugs have to be taken twice or four times a day for three or more days. Interestingly Ranbaxy worked for a revolutionary Drug with Research going for 15-years of drug discovery. Cipla is also a leading player in this market. With this partnership, Aanjaneya Lifecare which is a leading supplier to most of the Indian Companies will look forward for a better deal in doing business in india. With a significant market presence with manufacturing and marketing capabilities in APIs (Active Pharmaceutical Ingredients) with focus on anti-malarial, and finished dosage forms (FDFs) , Aanjaneya Lifecare could fetch a bigger fortune as anti-malarial drugs market in india  is growing at  ~25% & Anti-malarial market size in India is estimated at Rs600 crore. The Company is yet to enter into domestic branded formulation market, though it has plans to start the fiercely competitive Indian market operation by early 2013.

Dr Kannan Vishwanath, Vice Chairman & Managing Director of Aanjaneya Lifecare Ltd in an exclusive interview to Satya Brahma, Editor-In-Chief of Pharmaleaders Group spoke on wide gamut of business & expansion plans including the decline of share prices due to tough market conditions. Aanjaneya Lifecare Ltd stock was trading at Rs.299.80, down by Rs.15.75 or 4.99%. The stock hit an intraday high of Rs.299.80 and low of Rs.299.80.The total traded quantity was 213 compared to 2 week average of 21517.

1.       According to data available with the stock exchanges, shares of Core Projects tumbled 62 per cent and was the biggest loser on the entire BSE, while scrips of Aanjaneya Lifecare, Sudar Inds, Flexituff, ABG Shipyard, Welcorp and Gemini Comm crashed by 20 per cent each. Any Specific Reasons?

Answer: If you look at the overall scenario, you will get a clear indication that some of the biggest Midcaps have been losing grounds primarily because of the toughest market conditions & Aanjaneya Lifecare is not an exception. We are definitely disturbed as trading in stock exchange has become challenging but this is a temporary phase, we have a strong growth plans & we are gearing for top gear with our ambitious plans. The Board of Directors of Aanjaneya Lifecare Ltd at its meeting held on March 05, 2013, have decided that the date of opening of issuance of FCCB up to USD 75 million is on March 12, 2013. Of late, we find a huge fluctuation in the market prices of our scrip and it is disturbing for us. In order to achieve the growth plans of the Company, we are in dialogue with our International Bankers for raising resources for the expansion through FCCB. The international investors are cautious due to wide fluctuation in the market price of our scrip."

2.       The S&P BSE mid-cap index fell by 1.20 per cent and S&P BSE small-cap index lost 1.36 per cent.What are the reasons for this decline?

Answer: As explained earlier, this is a volatile market conditions in all S&P BSE mid-cap index. You can’t expect healthier trading every day. Please look at our performances in our Annual Report, we have outpaced industry standards. While it will take sometimes to gain the momentum, we are confident of good numbers. No need for Investors to be panic. Investors can be assured of their returns as they have been getting earlier. Global Market volatility is also one of the factor. The midcap universe came under pressure largely on account of concerns about their earnings as some of them have reported Q3 numbers, which came below market expectations.

3.       While your Net profit declined by 13.9 per cent to Rs.10.45 crore from Rs.12.14 crore, though its net sales increased sharply by 35.6 per cent to Rs.145.86 crore from Rs.107.58 crore. What is your expectations from the next quarter?.

Answer: Please look at our announcement which is much healthier. With new capacities to be added in next 6 to 9 months the company will be expanding operations in emerging markets of South East Asia, Africa & South & Central America and its domestic operation in branded generics segment. The Company has reported a growth in the total Sales to the extent of 35.58% at Rs 1458.64 million during the third quarter ended 31st December 2012 compared to Rs 1075.78 million during the same period last year. The net profits for Q3 amounted to Rs 104.53 million as against Rs 93.37 million for the previous quarter ended 30th September 2012 and Rs 121.42 million for the corresponding period of previous year ended 31st December 2011. We will have a bigger chunk in next quarter though I can’t specify the numbers, it will definitely be bigger.

4.       Aanjaneya Lifecare has been a dark horse in Pharma Scrips since its IPO in 2009 as it has been consistently performing. Why there is a sudden fall?

Answer: As I have mentioned in my earlier note, we have a sound financials with a robust processs mechanism. Our Corporate Governance is our biggest strength. We have no huge debtors like other Pharma Companies. We have recorded good performance in a difficult period and the future is bright. We are seeing a promising period for the company one in which we could achieve our goals set towards customer satisfaction, quality standards and of course shareholder value. We will keep the growth momentum focused & visible. Coming Days will spell out our success in overseas markets.

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