Torrent Pharma Derma Products

Notes from the AGM: I attended the AGM of Torrent Pharma in Ahmedabad & also happened to meet there. This was the first time I attended Torrent AGM. I haven’t dwelled much deeply in the company products., and I admit that I have very little understanding of the pharma play. Ankit Gupta is far more specialised into research of pharma companies & knows even the intricate details in this sector.

DERMATOLOGIC THERAPY PRODUCTS. Drug, Strength & Dosage. Mometasonefuroate 0.1%, Cream.

I would like to add my observations & notes from the AGM: On delay in launching gCrestor: The company said that it couldnt complete the product filing on time & FDA approvals for the generic versions had already been granted to 6 other players by the time (: please correct me, if I am wrong here ) On acquisition of Glochem: As mentioned by Ankit, Glochem was acquired as it was an API vendor for the company & it was available for acquisition. The company says that this acquisition would strengthen the backward integration & would reduce dependency for API on a third party. On Oncology ANDA filed: The company replied that it hasn’t yet filed any ANDA in this segment so far. On ANDA approvals received in this financial year: The company replied that it has not received any approvals yet in FY-17 On the rationale behind recent acquisitions: The company stated the following reasons for the respective acquisitions: a) Elder Pharma: Stronghold in Women Healthcare & Vitamin segment.

B) Zyg Pharma: For its USFDA approved derma products c) Glochem: For its API manufacturing facility One gentleman at the AGM, Mr. Champaklal Gandhi, raised some very key points regarding financial management & corporate governance. The main being: a) Mention of Rs.

37.49 crore in the Cayman Islands in FY-15 AR., but the same vanishing in the latest AR. B) Election donation to Satya Electoral Trust to the tune of Rs. C) Hefty increase in remuneration to Mr. Sudhir Mehta & Mr. Samir Mehta ( 100% & 50% respectively ). D) The gentleman also requested for the data about how many listed & unlisted companies operate from a single property called Torrent House.

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The answers to almost all these questions were sort of hushed up by the management. Although these questions do not cater to the company’s financial performance., but visible friction in answering these questions by the company do not give much comfort. My personal view was that the business may be good for many years to come., but I felt that the management wasn’t too forth-coming. Discl: Invested with a very minor portion of portfolio.

Thanks This FTF exclusivity expiry is a very important aspect for all pharma investors, that’s why wanted to be very sure on correctness of my conceptual understanding around this. Went back to FDA site to read it in fine printshere is what I found around the 180 days trigger events The statute provides that the first applicant to file a substantially complete ANDA containing a paragraph IV certification to a listed patent will be eligible for a 180-day period of exclusivity beginning either from the date it begins commercial marketing of the generic drug product, or from the date of a court decision finding the patent invalid, unenforceable or not infringed, whichever is first. Coming back to how come Watson FTE exclusivity will end on Oct when Astra Zeneca patent expired only on first week of July and exclusivity time calculation does not start from the time of approval, I think the answer was hidden in my first post itself. The company named Allergen which I mentioned had a pre patent expiry marketing agreement with Astra is none else but new name for Watson. So, to me its sorted now. AstraZenca allowed marketing rights to Watson/Actavis/Allergan (all there are same entity) starting May 2016 under an agreement and thus 180 exclusivity will stand seized in October. Thanks, Tarun Dis: 1.