Sanjivani Parenteral - Rs.64.00

Incorporated in 1994, Sanjivani Parenteral Ltd. (SPL) is jointly promoted by a team of pharma professionals. The company’s chairman, Mr. Anami H. Khemka, is associated with the Pharmaceutical Industry for more than 10 years with specialisation in marketing & exports and has good commercial relations with first line pharmaceutical companies. Basically, SPL is a contract manufacturing company specialising in injectibles for the institutional and hospital segments and its key clientele include Ranbaxy, Zydus Cadila, Alkem, Macleods, IPCA Labo, Intas, Glenmark, Medley and Shreya Life Sciences among others. It operates in the antibiotic injectible space (anti-inflammatory, microbial, emetic, allergic and spasmodic) with products like Ceftrimax, Ivimax, Piptaz, Cefepime and C-Bactum.

SPL’s manufacturing facility is WHO GMP certified and is located at Taloja in Maharashtra and can manufacture high grade antibiotics and life saving injectibles used in various pre and post operative infections. SPL is one of the fastest growing companies in contract manufacturing and has a healthy order book. Recently, it bagged a huge order of approx Rs.32 cr. from Kerala Government for supplying sterile cephalosporins for a period of 2 yrs. Earlier, it had received Rs.7 cr. order to supply cephalosporin injectables to the CIS market for a period of 18 months. It has already filed two DMFs (drug master files) in the CIS countries and expects to register 12 more products there. Besides for the first time, Sanjivani has launched its own drugs, Cobaz (Mecobalamine Injection) and Trenaxa (Tranexamic Acid) in the domestic market a few months back through its marketing partner, V.H.Bhagat Pharma, and has fetched a good response from the market. With this initial success, the company is planning to launch a third product Meropenam, a CNS Drug used for brain fever. SPL also intends to introduce Aprotimin injectibles used in heart ailments and the anti-amoebic Ornidazole injectibles. Moreover, SPL has received a contract manufacturing order from a mid-sized Indian pharma company for a novel drug which is a big breakthrough for the company. The Tamil Nadu (TN) Govt. team has inspected its facility and the company may announce some fresh orders soon. On the export front, the company is now trying to supply its products to other markets like Vietnam and Malaysia. There is also a possibility of a merger of Sanjivani Paranterals with its sister concern, Sanjivani Pharmaceuticals, which will give access to an additional basket of Anti-HIV drugs.
With every passing quarter, the company has become stronger and bigger. The board has decided to make a preferential allotment to promoters to raise Rs.2 cr. for setting up an UK MHRA approved facility. The company is in a process of transferring its debt from a co-operative bank to a nationalised bank, to reduce the cost of borrowing from the present level of 13% to about 10%. For FY05, it posted stunning numbers. Sales jumped 135% to Rs.31 cr. and NP stood at Rs.2.80 cr. compared to 0.16 cr. last year. Considering the company’s aggressive growth plan for FY06, we expect it to report Net Sales of Rs.60 cr. and NP of Rs.6 cr. leading to an EPS of Rs.12 on its current equity and approx Rs.10 on the diluted equity. Investors are strongly recommended to buy with a price target of Rs.100 in 12 months

The company has filed its dossier for registration in the Russian market for Cepreomycin, which falls under the anti-T B category. The major player in the market is ELI-Lilly of USA. The market size as on today (December 16, 2004) is 15 million US$. Sanjivani Paranteral Ltd has informed that the Board of Directors at its meeting on April 20, 2005 has decided to issue a Convertible Warrants to the promoters and their relatives aggregate to Rs.2 cr. subject to increase in the Authorised Capital of the Company. Further, the company has informed that the Board has also decided to call a General Meeting for this purpose.
The Company has further informed that it has bagged order for the supply of 3 million units of Cephalosporin to CIS Market which is to be executed within 18 months, and the approximate value of the order is USD 1.50 million.