Laurus Labs FY21 Annual Report Takeaways πŸ”¬

'Capex plans are already under way to increase capacity by 1.8x by 2022'

Hit the 'retweet' & help us educate more investors.

A Thread πŸ§΅πŸ‘‡

1/ About the company:

Leadership position in generic APIs with a major focus on Antiretroviral drugs, Hepatitis C & Oncology drugs

FDF: Moved up the value chain in formulations

Synthesis (CDMO): KSMs, Intermediates & APIs to pharma innovators.

Bio: Recombinant products
2/ Strengths of the business:

Robust R&D & Process chemistry skills
Compliance that meets the most stringent regulatory expectations (USFDA, etc)
Long-standing relationships | Top 10 global pharma cos. catered

750+ scientists (R&D) | 61 DMFs | 27 ANDAs | 150 patents (292 filed)
3/ APIs: 54% of rev

- Leaders in various high-value & high-volume APIs.
- 4 high potent manufacturing facilities: 4186 KL, increasing capacity by 24% (Strong demand)
- ARV APIs were up 70% | Onco APIs up 25% | Other APIs up 56% (higher contract manufacturing orders from πŸ‡ͺπŸ‡Ί)
4/ Formulations: 35% of rev

- Backwardly integrated: in house APIs
- Sales to LMIC, πŸ‡ΊπŸ‡Έ & πŸ‡ͺπŸ‡Ί
- 27 ANDA filled: 9 approved+ 8 tentative.
- Capacity of 5 Billion units/yr, Increasing capacity by 100%
- Sales up 102% (growth across markets)
- Launched TLE 400 in the LMIC market
5/ Synthesis: 11% of rev

- CDMO services for global pharma with 50 active projects
- Commercial supplies ongoing for 4 products
- Sales up 35% due to client additions & increased commercialisations

During the year, acquired 73% of Richcore Lifesciences & renames it Laurus Bio.
6/ Manufacturing:

7 manufacturing plants in Andhra Pradesh & 1 plant in Hyderabad+ a kilo lab at the Hyderabad R&D center.

Future capacities: Debottlenecking to increase by 15% by Q1FY22 & further increases over the next 3 years.

Increasing capacity by 80% in 2022 πŸ§ͺ
7/ Laurus' journey of 15 years:

From ARV API company to API to Pharmaceutical company

Increased reactor volumes by 20 in 10 years
USFDA manufacturing sites from 1 to 5
Team strength 6 times
DMFs 5 times.
8/ Numbers that matter:

Sales up 70% YoY
33% EBITDA margin
Pat up 286% & Strong Cashflows
Strong Return ratios
4% of turnover invested in R&D

Growth Engines ->
9/ From the desk of the CEO (Dr. Chava)

- Formulation segment grew from 5cr to 825crs in 2 years 🀯: tender businesses
- Acquisition of Richcore: In 5yrs want to use its capabilities to do biologics at a scale
- Setting up a dedicated R&D center & manufacturing for synthesis
10/ Trends in which the co. is betting on

- Demographics: An increasingly ageing population
- Changing supply chains: πŸ‡¨πŸ‡³+1, etc
- Digital adoption across business operations
- Pressure on govt. budgets: decreasing medicine prices (generics market share to πŸš€)
- CDMO adoption.
11/ ARV opportunity & how the company is playing it: 12 APIs covering both 1st line & 2nd line treatment regimens.

Same for the Nutraceutical/dietary supplements
& cosmeceutical segments
12/ Strategies (Short & Long term)

The company running in the right direction, let's see if the management has more surprises under their sleeves.

End of Thread.
Laurus Labs Q4FY21 Concall Takeaways: https://t.co/1qU2RSChqw

Laurus Labs Q4FY21 results:
https://t.co/xGojyaTaeU

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Great article from @AsheSchow. I lived thru the 'Satanic Panic' of the 1980's/early 1990's asking myself "Has eveyrbody lost their GODDAMN MINDS?!"


The 3 big things that made the 1980's/early 1990's surreal for me.

1) Satanic Panic - satanism in the day cares ahhhh!

2) "Repressed memory" syndrome

3) Facilitated Communication [FC]

All 3 led to massive abuse.

"Therapists" -and I use the term to describe these quacks loosely - would hypnotize people & convince they they were 'reliving' past memories of Mom & Dad killing babies in Satanic rituals in the basement while they were growing up.

Other 'therapists' would badger kids until they invented stories about watching alligators eat babies dropped into a lake from a hot air balloon. Kids would deny anything happened for hours until the therapist 'broke through' and 'found' the 'truth'.

FC was a movement that started with the claim severely handicapped individuals were able to 'type' legible sentences & communicate if a 'helper' guided their hands over a keyboard.