{"id":1907,"date":"2021-05-19T15:36:30","date_gmt":"2021-05-19T15:36:30","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=1907"},"modified":"2021-05-19T15:36:30","modified_gmt":"2021-05-19T15:36:30","slug":"remdesivir-production-ramped-up-seeing-a-global-shortage-of-tocilizumab-cipla","status":"publish","type":"post","link":"http:\/\/www.assetmultiplier.co.in\/blog\/2021\/05\/19\/remdesivir-production-ramped-up-seeing-a-global-shortage-of-tocilizumab-cipla\/","title":{"rendered":"Remdesivir production ramped up, seeing a global shortage of Tocilizumab &#8211; Cipla"},"content":{"rendered":"<p><b>Update on Indian Equity Markets:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">After two days of an upswing, markets reflected weakness on Wednesday as Nifty closed the day 0.5% lower at 15,030. Within the index, COALINDIA (3.4%), CIPLA (2.1%), and SUNPHARMA (1.9%) were the highest gainers while TATAMOTORS (-5.5%), BAJAJFINSV (-1.8%), and M&amp;M (-1.8%) were few of the losers. Within the sectoral indices, REALTY (2.2%), MEDIA (2.0%), and PHARMA (1.2%) led the gainers while FIN SERVICE (-0.9%), PVT BANK (-0.8%), and AUTO (-0.7%) were the losers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Excerpts of an interview with Mr. Umang Vohra, MD and Global CEO, Cipla Ltd (CIPLA)\u00a0with CNBC -TV18 dated 18th May 2021:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">CIPLA has maintained its growth guidance for FY22E as the momentum is intact in the business trajectory with the upcoming launches in the US and India.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The rise in input price will abate when the demand for COVID-19 drugs abate, dependent on the trend in cases.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company has ramped up its Remdesivir production by five times. The company believes that the supply is not short beyond a week\u2019s demand or so because many other manufacturers have also increased production. Along with that, the company is also selling a lot of other vitamins and minerals related to COVID-19.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">During 4QFY21, company made 3% of sales from COVID-19 drug as compared to 5% in the earlier quarters.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There is a global shortage of Tocilizumab but the company has been able to serve for the same at its highest. Government importing Tocilizumab drug has helped alleviate demand pressure.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company is also willing to partner with global majors to import vaccines. The company can re-purpose factories for fill and finish of vaccines if required.\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<p><b>Asset Multiplier Comments:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The next 1-2 quarters might see a spurt in revenues from Remdesivir, Tocilizumab, and other COVID-19 related drugs due to the second wave of the pandemic.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">With the share of COVID-19 related drugs declining as a percentage of revenues, the focus will be on core business with new launches and new markets for revenue growth.\u00a0<\/span><\/li>\n<\/ul>\n<p><b>Consensus Estimates:\u00a0(Source: market screener website)<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The closing price of CIPLA was\u00a0\u20b9\u00a0898\/- as of 19-May-2021.\u00a0 It traded at 27x\/ 23x the consensus EPS estimate of \u20b9 33.6\/ 39.8 for 22E\/23E respectively.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The consensus price target is \u20b9 993\/- which trades at 25x the EPS estimate for FY23E of \u20b9 39.8\/-<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Disclaimer: \u201cThe views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Update on Indian Equity Markets: After two days of an upswing, markets reflected weakness on Wednesday as Nifty closed the day 0.5% lower at 15,030. Within the index, COALINDIA (3.4%), CIPLA (2.1%), and SUNPHARMA (1.9%) were the highest gainers while TATAMOTORS (-5.5%), BAJAJFINSV (-1.8%), and M&amp;M (-1.8%) were few of the losers. Within the sectoral [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[415,85],"tags":[417,737,735,736],"_links":{"self":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1907"}],"collection":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1907"}],"version-history":[{"count":1,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1907\/revisions"}],"predecessor-version":[{"id":1908,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1907\/revisions\/1908"}],"wp:attachment":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1907"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}