I hope this letter finds you safe and in good health.
As we celebrate the 75th Independence Day of India and AzadiKa Amrit Mahotsav it brings to my mind - our journey. We began as a retailer transforminginto an organization that has around 2000 employees and total assets of over US$ 200million. While these numbers are not big they represent much more. They are dulysupported by 10 billion doses of Polio vaccines and more than 150 million doses of othervaccines that we have supplied across the World. It highlights the continuous efforts thatwe have made to become one of the leading pharmaceutical and biotechnology companies inIndia that is shaped by evergrowing challenges.
After undergoing a comprehensive restructuring in our operations - bothstructurally and financially it gives me great pleasure that we are stronger than ever. Ibelieve we have the ideal vehicle to continue building an enterprise shaped byopportunities. Our structure affords us flexibility in allocating capital enabling us toenter any therapy any place. Our entrepreneurial odyssey has been grounded on a soundpremise: maximizing long-term value by exploiting newer possibilities. The sophisticationof our system lies in its simplicity.
Panacea Biotec is the first company to launch a fully-liquid wP basedpentavalent vaccine Easyfive-TT? protecting children against 5 deadly diseases. By2011 pentavalent vaccine became the foundation of the Global Immunization Program and hada total annual market of more than 200 million doses just with UN Agencies. In 2017 weagain became the first company to launch EasySix - the world's first wP-IPV basedhexavalent vaccine. It . gives me immense pleasure that WHO's Strategic Advisory Group ofExperts on Immunization (SAGE) in October 2021 has accepted wP-IPV based hexavalentvaccine for the Global Immunization program which has paved the way for creation ofhexavalent vaccine market of more than 200 million doses annually by 2030 through UNAgencies.
The strength of Panacea Biotec is not j ust in the revenues that weearn but the impact that we generate and will continue to generate - impacting humanlives. Our products bring joy and wellness to families and create long-term value tosociety in terms of healthy and educated people that can contribute even greater value tosociety. We provide an opportunity for Better Health to Live Well and Live Longer.
As you know the global pharmaceutical and vaccine industry hasgrappled with multiple issues from 2020 onwards. On account of Covid-19 increasingcompetition and pressures on the margins due to rising costs muted global trade mountingglobal tensions and enhanced regulatory norms have fundamentally changed the contours ofthe business environment in which we operate. In early 2022 we took a major decision ofdivesting the domestic pharmaceutical formulation brands portfolio and embarking on a newjourney after careful considerations and deliberations on the future needs of society andour ambition to fulfil healthcare needs in an affordable and sustainable manner. With thedivestment of India-focused pharmaceutical formulation brands portfolio Panacea Biotechas become debt-free while becoming more focused on the newer opportunities offered by themerger of human needs and our enhanced understanding of science.
Panacea Biotec has been a leader in the development of vaccines rangingfrom recombinant viral and bacterial vaccines. Panacea Biotec has a strong pipeline ofvaccines under development to boost its future growth including DengiAll? a single doselive-attenuated tetravalent vaccine against Dengue fever NuCoVac-11? a pneumococcalpolysaccharide conjugate vaccine (11-valent) Td (Tetanus and Diphtheria reduced) VaccineHepatitis A vaccine and a multi-epitope nanoparticle based broadly protectiveBetacoronavirus candidate vaccine. Panacea Biotec has also been awarded a grant of US$12.5 million by Coalition of Epidemic Preparedness (CEPI) for the joint-development of abroadly protective Betacoronavirus vaccine with THSTI (A Government of India Institute).
Panacea Biotec vaccine brand portfolio includes EasySixEasyfive-TT? and Easyfour?-TT. We are also targeting launch of the world's firstfully-liquid wP-IPV based Pentavalent vaccine Easyfour-Pol during the currentfinancial year to further augment our position in the segment - complete protection withease of administration.
Most of our revenues come from the manufacture and sale ofbiopharmaceutical products. With the divestment of India- focused pharmaceuticalformulation brands portfolio Panacea Biotec is now more focused on vaccines andinternational pharma business with science-based innovative medicines and vaccines.
During the year the revenues from vaccines business has increased toRs.2347.71 million from Rs.2278.34 million in financial year 2020-21. The consolidatedrevenues from pharmaceutical formulation business also grew to Rs.4264.61 million ascompared to Rs.3969.71 million during the previous year.
In the beginning of FY 2021-22 the deadly second wave of Covid-19pandemic started across the country and impacted the whole country severely killinghundreds of people and affecting thousands of people everyday. As a result of continuedimpact of Covid-19 pandemic the country witnessed decline in the birth cohort. There wasmigration happening from urban areas to rural areas as people moved to their native placesworking from home. All these factors impacted the paediatric vaccination coverage and wealso felt its impact on the domestic branded vaccine sales. We have taken necessary stepsto increase our market share during the current financial year which include renewedpromotional campaigns and launch of new product.
Panacea Biotec is supporting global cause of providing affordablevaccines to the children across the globe and it works closely with global organizationslike WHO Global Alliance for Vaccine Initiatives (GAVI) UNICEF PAHO CEPI Bill &Melinda Gates Foundation (BMGF) and Clinton Health Access Initiative (CHAI) etc. TheCompany is a member of Developing Countries Vaccine Manufacturers Network (DCVMN) apublic health driven international alliance of manufacturers and shares common vision andmission of combating infectious diseases and accelerating access to affordablehigh-quality vaccines.
Panacea Biotec has been one of the largest suppliers of vaccines tomultilateral agencies like UNICEF PAHO etc. and has been supplying vaccines toinstitutional customers and national governments for over two decades. Besides supplyingthe wP based Pentavalent vaccine Easyfive-TT we will once again begin supplies ofour Bivalent oral polio vaccine (bOPV) to UNICEF during current financial year.
The Company intends to export its vaccines to several *countries in the future. As part of this strategy the Company has already registered itsvaccines in around 15 countries.
Further registrations in these countries and around 16 additionalcountries are expected in the near future.
Panacea Biotec through its wholly-owned subsidiary Panacea BiotecPharma Limited has an established business of pharmaceutical formulations in over 30countries worldwide including the United States Germany Russian Federation TurkeyBosnia Tanzania Kenya Serbia Vietnam Philippines Sri Lanka Panama EcuadorTrinidad & Tobago etc. We are continuously filing new product registration dossiersin existing as well as new markets to further strengthen and grow our exports in thefuture.
During the year the consolidated pharmaceutical formulations exportrevenues were Rs.1632.24 million as against Rs.1717.38 million during previous financialyear. The decline was mainly on account of decrease in sales in ICH markets followingincreased generic competition. In the ROW markets PBPL has re-entered Brazil after a gapof around 8 years.
Panacea Biotec is in the process of initiating phase III clinicaltrials for NucoVac-11? DengiAll? and Td vaccines which are slated to start by end of FY2022-23. Our tetravalent dengue vaccine candidate DengiAll? continues its march towardslicensure with receipt of permission to conduct a Phase III clinical trial in India by theIndian NRA. We are conducting this study in collaboration with the Indian Council ofMedical Research and are very excited as we take another step in our decade long journeyto bring to market a Dengue vaccine. As you may know as per WHO India is a dengueendemic region with around 200000 cases being reported every year and hundreds of deaths.As Dengue fever is endemic in other South-East Asian countries DengiAll? is in line withour government's "Look East Strategy" and "India for the World" pivotto bring well-being and harmony to the World.
Our decade-long pneumococcal vaccine development (PCV) program is alsobringing results as our candidate NuCoVac-11? is set to initiate Phase III clinicaltrials. Today Government of India procures over 80 million doses of Pneumococcal vaccinesfor over 25 million babies born in India every year - creating immense social and economicopportunity for us and all our Stakeholders.
Panacea Biotec has a strong portfolio of intellectual property in theform of patents trademarks and copyrights in both vaccines and pharmaceuticalformulations business. As of March 312022 we have filed over 485 patent applications inover 65 countries including India which include patent applications pending grant andpatent applications which were prosecuted. As of March 31 2022 we have been granted over462 patents globally out of which 36 are active. Some of the countries where patents havebeen granted are India USA Germany Mexico Brazil Japan Korea etc.
With such a strong portfolio we will continue to play a big role inthe health and prosperity of India and our friends for years to come. We also remaincommitted to affordable innovations that make a real difference in people's lives aroundthe world. Your management continues to remain committed to grow the Company's businessbuilding on its strong foundation and executing its pipeline of products.
Panacea Biotec's research and development efforts have been itsgreatest strength. The areas of research are New Chemical Entities (NCE) New BiologicalEntities (NBE) Novel Drug Delivery System (NDDS) Novel peptides human monoclonalantibodies and Vaccines. Our ambitions are backed by sustained delivery through ourdistinguished ultra-modern state-of-art R&D centers with ~70 scientists and deeproots within the academic community.
Panacea Biotec once again in its new form has regained strength isready to leap-frog into a new future with confidence agility and vigour. We continue tosupport a society that provides equal opportunities for all; our actions to makehealthcare affordable and accessible make our contribution even more important. We alsoembark on a new journey to support environmentally sustainable initiatives such asrenewable energy environmentally sustainable packaging among other initiatives willcontinue to add to the impact that we generate.
As an innovative organization we continue to integrate our strengthsorganizational capabilities infrastructure and the talent that India and the World hasto offer to Support Life.
With these words I express my sincere thanks to all our employeesstakeholders bankers partners and associates for their unbroken support participationand guidance as we forge ahead in our journey to become a leading healthcare company inthe World and increase our contribution to Society.
|Best wishes |
|Soshil Kumar Jain |