Krsnna Diagnostics IPO notes: 'Let's do Good' ❓

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The Business Model of Indian Hospitals Simplified.

“We are blessed to be living in a country where the cost of healthcare is the lowest in the world.” ~Dr. Devi Shetty, Narayana Health

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1/ In the Indian healthcare delivery market; the pharmaceuticals market is 20% of the pie. While Hospitals market is 3x that of theirs.

Big opportunity size, however, is it investment-worthy? Let's see.

2/ Before we get into the details:

Do brush up on the different abbreviations associated with the Hospitals & the Pharmaceuticals industry in General, for example ALOS, ARPOB, NABH, etc.

Inpatient (IPD): Need to get hospitalized
Outpatient (OPD): No need to get hospitalized

3/ The hospitals are of basically 3 types:

Primary: For OPD only (no beds), sends to below hospitals for further treatment

Secondary: IPD & OPD in medium-sized general hospitals

Tertiary: Can treat all complex ailments & huge in size, Major listed companies are focused here.

4/ Hospitals can also be classified based on Ownership & management:

Here, the listed companies either are in private or manage hospitals owned by others (Asset light business, due to the very high land prices in metro cities)

A thread on the snippets (paragraphs & quotes) from the book ‘Why We Sleep’ by Matthew Walker 💤

One third of our lives, better read about it.

This thread will be updated as I read further & further.

1/ “Two-thirds of adults throughout all developed nations fail to obtain the recommended eight hours of nightly sleep.”

Imagine if you don’t have that rare ‘short sleep’ genes 🧬 that allows you to do will less than 5 hours of sleep 🛌.

2/ It’s going to get ugly.

3/ Pandemic.

4/ Why to learn about sleep.

Glenmark Life Sciences (GLS) IPO notes 🔬

Plans to take the capacity to 1762KL (currently 762KL) in the next 4 years.

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1/ About the company

Developer & manufacturer of high value, non- commoditized APIs (complex & low competition) in chronic therapeutic areas: CVS, CNS, pain management & diabetes, etc

Basic details about the IPO 👇

Note: After paying off liabilities, 150crs remain for capex.

2/ The Journey

Established the API business in FY02

Since 2015, Have not received any adverse reactions from regulators (USFDA, PMDA) in the total 38 audits & inspections & Have gone through 432 customer audits.

Filled 403 DMFs & CEP registration across markets globally.

3/ Trends that the company is betting on & what works for them

China+1: India API market growth (10% cagr projected from FY21-26) will outpace the industry: Driven by specialty API+ Strong domestic market

Highest no. of USFDA approved API facilities & % of DMFs filled

4/ Interesting facts

- 120 molecules: $142B market size
- Targetting 8 to 10 new molecules every yr (Key differentiator over time)
- 66% of sales from regulated markets
- Works with 16 of the top 20 generic cos.
- Top 7 customers: 5 to 15yrs old

Windlas Biotech IPO notes 💊

'What's in a name? that which we call a rose by any other name would smell as sweet' ~Shakespeare

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1/ Basics about the IPO 👇

Incorporated in 2001

Fresh Issue of 165crs (50 for capex | 48 for Working capital | 20 for debt payment) + OFS of 237crs (Partially by promoter & PE Tano selling out as the fund tenure is up)

~ Total raise of 402crs

2/ About the company (Not a Biotech company)

A Contract manufacturer for formulation cos. (204 in total) for Indian markets & a small domestic OTC biz

3279 products, 4 plants with 700cr tablets/capsules capacity

Emphasis on chronic (60% of rev) & complex generics (70% of rev)

3/ History

Revenues:
FY11 - 100cr 👉 FY14 - 200cr 👉 FY21 - 400cr

Growth is similar to the Indian pharmaceutical sector, not gaining any market share even after increasing products.

Customers include Pfizer, Sanofi India, Eris, Cadila, etc.

4/ Competition: No Moat

400+ organized & 15000 unorganized players in the same space: 2% market share

Some of the things that can drive consolidation: Customers preferring better compliance

However, a single customer usually has 35-40 contract manufacturers for products.

On Cyclicals

All hell breaks loose once the growth slows down; as every investor rushes to exit at the same time. The decline is 5x faster than the rise.