It gives me immense pleasure to share with you that Panacea Biotec has continued itstradition of being one of the most innovative and highly progressive Company in India.Following this the Company has launched world's first wP based fully liquid hexavalentvaccine EasySixand tetravalent vaccine Easyfour-TT in India during the financialyear 2016-17. The Company's credentials in Innovation were globally recognized when yourCompany was once again conferred "Clarivate Analytics India Innovation Award2016" in March 2017 by Thomson Reuters recognizing Panacea Biotec as one of the Top50 Indian Innovator Companies based on patents related matrix such as volume of patents(patents published) as well as patent quality (grant success rate extent ofglobalization and citations).
Vaccines have played an important role in saving millions of lives across the globe byprotecting children from various deadly diseases. The global vaccines market was estimatedat US$ 32 billion in 2016 and is expected to grow to US$ 52 billion by 2022 growing at aCAGR of 8.3%. The Indian vaccine industry exemplifies the spirit of the 'Make-in-lndia'Programme and stands on a strong pedestal of domestic manufacturing success. The vaccinesproduced by Indian companies are used for the national immunization and in around 150countries globally which makes India a major vaccine supplier with one in three vaccinesacross the world being made by Indian companies.
The global pharmaceutical industry which has continued to face several challengesincluding the increasing regulatory concerns price controls and insistence by countrieson local manufacturing etc. is expected to reach at around US$ 1.5 trillion by 2021growing at a CAGR of 4-7% from 2016. The Indian pharmaceutical industry at this junctureis at cross roads where it is facing enormous challenges not only from domestic issueslike changing regulatory scenarios push for generics by Government increasing conflictsrelated to patents with multinationalsdemand for making products more affordable and yetdevelop newdrugs through investment in R&D.
During the year your company has achieved net revenues of Rs. 5301 million despitethe challenges faced by the Company on account of increasing price competition in sale ofpentavalent vaccine Easyfive-TT to UNICEF/PAHO non-availability of IPV bulk increasingprice controls by NPPA banning of irrational FDCs by DCGI and applicability of exciseduty upon expiry of holiday period at Baddi facilities.
During the financial year 2016-17 your Company has earned EBITDA of Rs.1209 millionand the finance costs have reduced to Rs.1014 million. The Company's loss before tax andexceptional items has reduced to Rs.462 million as against Rs.482 million during FY2015-16etc. The Company's long term debts have reduced by Rs.205 million during the year. TheCompany has recently divested its entire stake in its subsidiary company viz. NewRiseFlealthcare Private Limited at an enterprise value of Rs.1800 million and the fundsreceived from such divestment have been utilized for meeting working capital requirementsand for reduction of debts.
During the year the Company has received USFDA approval for its 2ndAbbreviated New Drug Application (ANDA) viz. Rizatriptan oral dispersible tablets and hasrecently launched the same in US markets through collaboration with Bionpharma Inc. USAthereby expanding the existing collaboration with them. In addition the approval processfor other ANDAs filed earlier with the USFDA is in progress. Your Company is alsodeveloping more than 10 ANDAs with a target of filing during the next 2 years. The Companyis in discussion with various leading pharma companies for launching these products in USEurope etc. The Company is also building a robust pipeline of around 25 products forfiling in several other emerging markets which it will be filing in the next 12-15 monthsand aims to improve the accessibility and affordability of medicines as the Company'scontribution to Government of lndia's"MAKE IN INDIA"mission.
Your Company has entered into a long term award with UNICEF for supply of 10 milliondoses of Easyfive-TT in CY2017 and has also received a notification from Pan AmericanHealth Organization (PAHO) for supply of around 5.0 million doses of Easyfive-TT throughDecember 2019 with overall value of US$ 20.475 million (around Rs.1400 million). TheCompany has also secured tenders worth around Rs.144 million for supply of bOPV toGovernment of India for FY2017-18. The production of bOPV at Company's vaccine formulationfacility at Baddi has also started.
As a part of the long-term growth strategy the Company is now expanding its sales ofrecently launched hexavalent vaccine EasySix in India and is expediting developmentof other critical vaccines including the pneumococcal vaccine and dengue vaccine which areexpected to be launched during FY2019-20.
Panacea Biotec thrives to make a significant difference in lives of people everywhere.It works closely towards the development of society inline with its philosophy ofcreating happierand healthier society.
Although the future is full of uncertainty and challenges but it is also full ofopportunities. As an organization we have evolved and we have evolved for the better.Let's all gear up and prepare for the better days ahead which is not very far away.
With these words I express my sincere thanks to all our stakeholders bankersemployees partners and associates for their unbroken support participation and guidancewhich we continue to count on as we forge ahead towards our destination.
Soshil Kumar Jain