Our endeavour is not only to add years to Life... but Life to years
At Panacea Biotec we believe in giving a chance for better health a chance to livelonger and live well. We at Panacea Biotec remain committed to affordable innovationsthat make a real difference in people's lives around the world. Our innovativepharmaceutical products and vaccine development program have consistently delivered NextGeneration Vaccines and Pharmaceuticals.
At the outset I am delighted to share with you that India Resurgence Fund(IndiaRF) promoted by Piramal Enterprises Limited and Bain Capital Creditalong with its af liates have committed an investment of up to Rs.992 Crore (US$ 144million) in the Company. This investment is structured by way of Non-ConvertibleDebentures (NCDs) of upto Rs.864 Crore (out of which NCDs worth Rs.743 Crore have beenissued and allotted on April 8 2019) and subscription amount of Rs.32 Crore towards sharewarrants allotted on a preferential basis. The subscription amount represents 25% of totalamount of Rs.128 Crore proposed to be raised upon issuance of equity shares againstwarrants. Subject to exercise of warrants IndiaRF (along with its af liates) willcollectively end up owning 10.4% stake in the Company on a fully diluted basis. Thesignificant portion of the investment proceeds have been used for bilateral settlementswith the existing lenders and the balance is being used for general working capital andgrowth requirements of the Company.
We are really delighted to partner with IndiaRF at this critical juncture in PanaceaBiotec's journey. We look forward to leveraging their proven global expertise inrestructuring and turnarounds and are certain that our combined efforts will now helpaccelerate our ambitious growth and profitability targets.
The Company's mission of becoming the world's leading biotechnology company offeringwidest range of innovative products and services to meet every healthcare need of mankindremains intact. We have taken several innovative measures such as consolidation and mergerof our various business units to integrate efforts and optimize productivity greaterfocus on R&D in priority areas several measures towards increasing eld forcemotivation raising funds from IndiaRF to overcome working capital challenges developing& commercializing best-in-class medicines and expanding our business operations indeveloped and emerging markets. Our motivation now is at its peak and we are fully gearedto achieve improved financial performance in the coming years with launch of new productsin the markets.
The Company's Pharmaceutical Formulations business registered revenues of Rs.348 Crorein FY2018-19 as against Rs.384 Crore in previous financial year. During the year theperformance was affected due to continued product shortages and working capitalchallenges. In the current year the Company has already taken remedial measures and hasseen improved performance in the business. As a result during the first quarter ofcurrent scal the Pharmaceutical Formulations business has earned revenues of Rs.97 Croreregistering a growth of around 13% as against the revenues of Rs.86 Crore duringcorresponding quarter of the year under review.
The Company's Pharmaceutical Formulations business in India has been restructuredduring the current financial year and is now being managed by 4 Strategic Business Units(SBUs) - 2 SBUs for Super-Specialty Business viz. Transplantation & Immunology andOncoTrust and 2 SBUs for Acute & Chronic Care Business viz. Diacar Alpha and Procare.
The Company has entered into a tripartite agreement with Natco Pharma Ltd. andBreckenridge Pharmaceutical Inc. for manufacturing and supply of Azacitidine Injection forthe US market under Breckenridge's already- approved ANDA. The commercial supplies havecommenced during first quarter of the financial year 2019-20.
The Company's ANDA for Paclitaxel Protein bound particles for Injectable Suspension100mg/vial has been accepted for ling by the USFDA. In addition the approval process forother ANDAs led earlier with the USFDA is in progress. The Company plans to launch theseproducts in US Europe etc. through strategic collaborations with leading pharmacompanies.
The Company along with its partner Apotex has entered into a Settlement Agreement withCelgene Corporation. As part of the Settlement Agreement Panacea Biotec and Apotex havereceived a non-exclusive license under which Panacea Biotec may through its partnerApotex begin selling Panacea Biotec's generic version of AbraxaneR in the US and itsterritories and also in certain jurisdictions outside of the US on mutually agreed-upondates. As a part of the settlement the Company has also received an amount of aroundRs.21 Crore as its share of Litigation Avoidance Fee.
The Company's manufacturing facility located at Baddi completed 5 consecutivesuccessful current Good Manufacturing Practices (cGMP) and pre-approval inspections by theUSFDA.
The Company continues to focus on building a robust pipeline of several products forling in several other emerging markets which it will be ling in the next 1-2 years andaims to improve the accessibility and affordability of medicines as the Company'scontribution to Government of India's MAKE IN INDIA mission.
The Company has received registration of Bendamustin ( first oncology registration) inSyria and launched in-house developed product Sitcom (for hemorrhoids) in Zambia andUzbekistan.
Panacea Biotec became one of the leading players in Vaccine therapeutic category inIndia and has earned revenues of Rs.96 Crore during FY 2018-19. Panacea Vaccine SBU hasregistered a strong y-o-y growth of 48% and has consistently improved its rank and marketshare in Vaccine therapeutic category since last 3 years.
The Company has in place a detailed strategic plan to achieve significant growth innear-term medium-term and long-term. The key growth drivers would include scaling up ofthe existing products and launch of new products and penetrating into newer markets inboth vaccines and pharmaceutical formulations business.
Panacea Biotec continues its efforts to make a significant difference in lives ofpeople everywhere. It works closely towards the development of society in line with itsphilosophy of creating happier and healthier society.
Although the future is full of unlimited possibilities for us as an organization wehave to innovate integrate our efforts and organizational capabilities and continuouslymotivate to outperform. Let's all gear up and prepare for the better days ahead which isnot 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