Aanjaneya Lifecare Posts Robust Growth, net up by 75% in Q3, Inches Close To Acquisition

Aanjaneya Lifecare Posts Robust Growth, net up by 75% in Q3, Inches Close To Acquisition

Sets Out To Reach An Ambitious Plan To Reach 500 Crore By 2014

Maharastra , Mumbai, Tuesday 31st Jan 2012 : Mumbai based Mid Sized Indian Pharma major Aanjaneya Lifecare Limited is charting out its expansion plan p0st the robust performance of quarter ended December 31, 2011 with sales zooming to1075 million for the quarter ended December 31, 2011; YoY growth over Q3 FY 2011 of 62% & PAT is Rs.121 million for the quarter ended December 31, 2011; YoY growth of 75% with the overall Results for the 9 months ended December 31, 2011 & the Sales are Rs.3188 million for the 9 months ended December 31, 2011; YoY growth over 9MFY2011 of 44% & PAT is Rs. 357 million for the 9 months ended December 31, 2011; YoY growth of 58%. The Mumbai-based pharma company is engaged in the manufacture of anti-malarial active pharmaceutical ingredients (APIs) and herbal medicines, inhalers, lozenges and animal health products. The company is the world's third-largest manufacturer of quinine salts used in the treatment of malaria. It is also one of the country's largest contract manufacturers of codeinebased cough syrups. The money ( Rs 117 crore) raised by the company through its IPO is being used to build new capacities and for the revamp of its R&D centre. With new capacities to be added in the next 6-9 months, the company aims to expand its operations in the emerging markets of South East Asia, Africa & South & Central America, It also plans to grow its domestic operations in the branded generics segment. The company has a market capitalisation of Rs 612 crore. Aanjaneya Lifecare, a Rs.320 crore plus Mumbai based pharma company, has posted strong financial performance during the third quarter ended December 2011. Its net profit surged by 74.9 per cent to Rs.12.14 crore from Rs.6.94 crore in the corresponding period of last year. Its EBDITA also jumped by 88 per cent to Rs.33.94 crore from Rs.18.05 crore. Its net sale went up by 62.5 per cent to Rs.107.57 crore during the quarter under review from Rs.66.21 crore in the similar period of last year. After the announcement of strong performance, Aanjaneya scrip moved up by Rs.14.95 or over 3 per cent to Rs.503.50 on BSE.

The above background is a clear indication to show that Aanjaneya Lifecare is al set to expand its business both domestic as well as international market. A close scrutiny of Company’s growth record wll reveal that from a modest beginning in the year 2006 till date ( since last 5 years), it has made remarkable growth defying all odds & marching ahead with its growth strategy. Its Visionary Vice-Chairman & Managing Director Dr Kannan Vishwanath who will turn 36 this year is leaving no stones unturned to make a formidable presence in the 68,000 crore Indian pharma market. Aanjaneya Lifecare stunned the biggies in the healthcare sector in the year 2011 by raising Rs 117 crore) raised by the company through its IPO at a time when many analysts viewed as a gambling, however, Dr Kannan proved to the point & lived up to the expectations to its stakeholders. We all know that pharmaceutical business in india is very risky yet lucrative if managed well, Dr Kannan just understood the pulse of the market & launched products that will give high margins. The coming days will be a real testing time as how the Company is poised to take its growth drive & fuel the success mantras.
In an exclusive interview to satya Brahma, Editor-In-Chief of Pharmaleaders & Indian Affairs magazine ( www.pharmaleaders.co.in www.indianaffairs.in , beaming Dr Kannan Vishwanath was quite emphatic when asked about his gameplan & success mantra as he says “ In Healthcare Business, Aanjaneya Lifecare was always focused to what it wanted to do no matter how risky & zigzags the roads are..I am quite optimist that backed by a battery of strong professionals within the company, we are here to mark our mark & provide molecules at an affordable rates. He went out to say that Aanjaneya Lifecare will soon make its foray into some of the biggest markets in the world & reach a magic figure of 500 Crore by the turn of 2014”. He however declined to make any comments on the acquisition front. But sources close to Pharma Leaders reveal that indeed Aanjaneya Lifecare is very close to acquire a domestic pharma company to widen its product basket. The deal could be the game changer for Aanjaneya Lifecare as I will add extra products & market presence”. Although the magnitude of the acquisition is not known despite many attempts to ask the company, but it could well within be 40 to 50 Crore if sources to the Pharmaleaders are to be believed.
For the first nine months of 2011-12, Aanjaneya recorded sales growth of 44 per cent to Rs.318.81 crore as against Rs.221.46 crore and its net profit increased by 58.3 per cent to Rs.35.79 crore from Rs.22.61 crore. EBDITA touched to Rs.88.55 crore from Rs.52.99 crore, registering a growth of 67.1 per cent. The earnings per share worked out to Rs.30.91 on an enlarged equity capital at Rs.12.58 as against Rs.29.70 on an old equity capital of Rs.7.58 crore. The company recently raised about Rs.117 crore from its IPO and the funds are being used to built new capacities alongwith the refurbishing of Research & Development centre. The new facilities being created as part of CAPEX are using eco friendly, recyclable material and will be rated by LEEDS once completed, company sources informed. The Facilities being established will comply with the latest European & US guidelines. With new capacities to be added in next 6 to 9 months the company will be expanding operations in emerging markets of South East Asia, Africa & South & Central America and its domestic operation in branded generics segment. Commenting on the financial performance of the Company Dr. Kannan Vishwanath, Vice Chairman and Managing Director of Aanjaneya Lifecare Ltd said,”We are very pleased with our financial results as our company is growing and will continue doing the same in future. The company’s business growth startegy has resulted in the over all good performance which can be seen in the performance for the quarter ended December 31, 2011. The company has performed excellent and it assures the sharesholders that the company will continue performing good in future too”.
A Brief Overview of Aanjaneya Lifecare Limited

Aanjaneya Lifecare Limited ( ALL ) is one of India’s emerging research based integrated pharmaceutical company with established manufacturing & marketing capabilities headquartered in Mumbai India. The product portfolio of the company includes highly Innovative Alkaloids, Anti Malarial APIs & Anti Cancer APIs from Natural Sources & Veterinary APIs. In Finished Dosages we cover important therapeutic areas such as Anti Malarial, Anti Cancer, Erectile Dysfunction, Hormone Replacement Therapy, Anti Obesity, Herbal products & Lozenges for various Therapeutic segments. Our strength lies in an excellent track record of regulatory approvals & ability to produce a broad range of pharmaceuticals and dosages, like solid, semi-solid, liquid, Gels, Ointments & Lozenges & strong R&D capability, with particular expertise in technically challenging products.

In short span of 6 years we have emerged as third largest manufacturer of Anti-malarial Bulk Drugs Quinine salts in world with presence in 61 countries. We have 5 world patents filed for non infringing route of synthesis for manufacturing Anti Cancer APIs. In Formulations We have introduced for first time in India & emerging markets Nicco-Nil (Hard Boiled Lozenges) containing Nicotine for Quitting Smoking . We have a Pipeline of 75 products to be introduced in phases. . As part of Corporate Social Responsibility program the company has upgraded the school toilets, the class rooms & roofing of an all Girls high School in Mahad , Maharashtra State India. We have constructed Temporary Sheds & housing arrangement for Stray animals in Monsoon for an NGO IDA (In Defense of Animals Our Initial Public Offering in May 2011 was well received & we have been listed in both the premier stock exchanges in India , Bombay Stock Exchange & National Stock Exchange & trading over 40 % premium to our listing price. Aanjaneya Lifecare Introduced for the First Time in Emerging markets of Kenya Tanzania & Dominican Republic Nicco-Nil An OTC product For Quitting Smoking. Introduced 10 products in Lozenges dosage forms which are sugar free & Novel Drug Delivery Systems & available in OTC for Mouth Ulcers ( Ulsacare ) , Prostrate Cancer ( Curcumacare ) , Insomnia ( Relacs) , Appetite enhancers for children ( Apitcatch ) , Arecta Plus ( Erectile Dysfunction ) , Livchek ( Liver Protection ) ,Ezmove ( Mild Laxative) , Natroumune ( Immunity Booster ) & Flukil ( Swine Flu Protector ) . Have invested in Rain Water Harvesting in both our manufacturing facilities & harvest Rain Water in Monsoon for our requirements, further Installed Solar Panels for energy requirements of our utilities, new blocks have been constructed using Eco Friendly recyclable material & The blocks are in process of being rated by LEEDS as Platinum Star . Aanjaneya Lifecare Received the Green Business of the Year Awards at Emerging India Awards held by CNBC TV-18 & ICICI Bank at Macau inNovember 2010 . Aanjaneya Lifecare recently received two prestigious recognitions at 4th Annual Pharma Leadership Summit & Awards 2011. PharmaLeaders, an international bi-monthly magazine & Indo-American Chamber of Commerce, honoured Aanjaneya Lifecare with two prestigious awards “Emerging Pharma Company of Year 2011” & “India’s Most Technically Advanced Manufacturing Facility of the year 2011” at a glittering ceremony in Mumbai held at Hotel Intercontinental at a gala event on Saturday 10th December 2011. The Company has Grown at CAGR of 175 % in last 4 years having state of the Art Facilities which have WHO GMP approval, ISO 9001:2008, ISO 14000 :- 2008 & ISO 22000:2005 accreditation. Aanjaneya Lifecare debuted in the premier stock exchanges of India, Bombay Stock Exchange & National stock Exchange in May 2011 & are being traded at about 40 % premium of listed prices . As part of Corporate Social Responsibility program the company has upgraded the school toilets, the class rooms & roofing of an all Girls high School in Mahad , Maharashtra State India. We have constructed Temporary Sheds & housing arrangement for Stray animals in Monsoon for an NGO IDA (In Defense of Animals ) in Mankhurd – Mumbai.

Dr Kannan Vishwanath
Vice Chairman & Managing Director
Aanjaneya Lifecare Limited

Dr Kannan Vishwanath founded Aanjaneya Lifecare Limited in 2006. He has completed his Chemical Engineering in Pune & Masters & Doctorate of Philosophy in Business Management from University of Azteca. He has over 12 years Experience in Pharmaceutical Industry with expertise in Licensing, Business Development, API, Generics, Finished Dose, Intermediates, marketing, production, distribution, licensing, outsourcing, contract development, formulation development. Patience and Risk Taking are among the motivational factors applied by Dr Vishwanath and they have helped the company to learn from past mistakes and in making better decisions in future. A believer in fair practices, this visionary leader always offers his hand when needed regardless a friend or foe. Dr Vishwanath believes: “when you have a gream , don’t let anything dim it . Keep hoping, keep trying , for Sky is the Limit.

Coming from a very humble beginning with just 40 employees and small manufacturing facility for anti malarial drugs over 6 years ago , Dr Vishwanath has achieved exceptional results through developing and redefining the business roadmap, ensuring differentiation as a competitive advantage and clearly focusing on the brands consumers want and the products consumers need . Anjaneya Lifecare Limited (ALL ) produces & markets a range of pharmaceutical products across the globe . With two facilities in Maharashtra state employing over 300 people the company delivers essential products for every day life under the brands Rankorex, Prosils, DocTor quore, Esyhil, amongst others. The company has over 200 distributors pan India for its Branded Generic products & exports to over 40 countries with sales in excess of 320 crores. Under Dr Vishwanath’s leadership, the marketind, reachersh & product development departments were expanded . The company has been growing at CAGR of 175 % for last 5 years and is now the third largest manufacturer of Quinine salts in world. ALL has received many awards and accolades which recognize its brands and product excellence , such as the Green Business of the year-2011 at Emerging India Awards by ICICI Bank & CNBC TV 18 & voted among the top 100 company in “ India’s Best Companies to Work With -2011 “
PROFESSIONAL SUMMARY
Innovative and results driven leader focused on achieving exceptional results in highly competitive environments that demand continuous improvement. Experience in driving product, process and customer service improvement while building partnerships with key business decision makers
Consistently increased production, reduced operating costs and improved product quality by utilizing world class manufacturing concepts ( lean manufacturing six sigma, theory of constraints etc ) to optimise & rationalize manufacturing processes and supply chain networks Known for building and motivating cross functional teams that exceed corporate expectations.
PROFESSIONAL EXPERIENCE

Promoter & Managing Director
Aanjaneya Lifecare Limited (1/2006 - Present)
Mumbai India.
India’s largest manufacturer of Quinine salts
• Transitioned company transformation from a family owned business to a merger and acquisition and management buyout of a formulation company & integrating business
• Drove he operational planning and successful execution for doubling product lines manufacturing capacity to exploit market growth opportunities.
• Achieved two site turnarounds within two years , bringing operational metrics to baseline standard , while maintaining and improving permanent priorities of safety quality service appearance and people
• Leadership and aggressive development of the company's Formulations business. Identification of market blockbusters and strategies for organic and inorganic growth of formulation segments.
• Drive the company's initiative to become a formulations driven company with a clear focus of making the Formulations business account for 60% of the company's Revenue.
• Building winning teams and driving aggressive growth not just in terms of Year on Year growth but in terms of market shares in the segments the company chooses to work in.
• Sustain and grow the existing pipeline and develop the pipeline for the future. Ability to separate the winners from the losers and dropping losers early in the game is key.

Director (International Sourcing, Business Development & Planning)
BENZOCHEM LIFESCIENCES PVT LTD (1999-2006)
ISO 90001:2000.ISO 14001:2004 & India leading manufacturer of oncology APIs
• Was responsible for a Team of 50 people with $ 10 million budget including supply chain functions two sites, distribution network all inclusive from product conception, procurement, planning through quality and operations to customer delivery.
• Presented and gained approval from the board of directors and executed capital expenditure of 4 million USD with ROI of 5 years
• Developed an effective blend of best practice, teamwork-based culture combined with execution of organizational goals, strategies and measures, which supported the turnaround of the company from near bankruptcy to a stable . rapidly growing business
• Created a cohesive product supply leadership team and provided one-on-one coaching capitalizing on each person’s strengths to deliver high customer satisfaction and quality levels at the lowest total delivered cost.
• Developed communicated and educated product supply leaders and employees on the key profit drivers and tied performance, rewards and recognition to those results. This resulted in cost savings of over 250,000 USD per year.
• Led a core team of engineering research and development and marketing employees who redesigned and implemented upgraded product line up with achieved improved customer satisfaction , superior product
EDUCATION
MIT PUNE- MAHARASHTRA India.
Bachelor of Engineering
Asia-E-University .
Masters in Business Administration
IIRM – Univerisity of Azteca
Doctor of Philosophy in Business Management
International University of Vienna
Honorary Doctorate
PUBLICAT IONS AND RESEARCH
The Study of Individuals Organizational & Environmental Determinants of Innovation by Kannan Vishwanath
Co-Authored & published patents of Tran’s dermal formulations
A NOVEL HYDRO ALCOHOLIC GEL AND /OR CREAM FORMULATION OF METHANDIEONE AND BOLDENONE FOR SAFE DRUG DELIVERY 212673 - 23/MUM/2005

A NOVEL HYDRO ALCOHOLIC GEL AND/OR CREAM FORMULATION OF TOPICAL STEROID OF TRENBOLONE ACETATE AND 212674 - 22/MUM/2005

A NOVEL TRANSDERMAL GEL AND/OR CREAM FORMULATION
212676 - 19/MUM/2005

A NOVEL HYDRO ALCOHOLIC GEL AND /OR CREAM FORMULATION OF NANDROLONE DERIVATIVES
212692 - 20/MUM/2005

A NOVEL HYDRO-ALCOHOLIC GEL AND/OR CREAM FORMULATION OF ANDROSTEN -17-01-3-ONE DERIVATIVES FOR SAFE DRUG DELIVERY SYSTEM
212752 - 21/MUM/2005
MEMBERSHIPS
 Indo American chamber of Commerce
 Indo African chamber of Commerce
 Indo German Chamber of Commerce
 Indian Merchant Chambers
AWARDS & HONORS

The European Quality Award 2008 on Behalf of Aanjaneya Biotech Pvt Ltd

The Bizz Award 2008 on behalf of Aanjaneya Biotech Pvt Ltd

OTHER ACCOMPLISHEMNENTS, RESPONSIBILITIES & PARTICIPATION
Community Service Projects:
In Defence of Animals
Provided temporary shelters for 100 animals during monsoon Season. Donated an ambulance for emergency situations for animals at centre in Mumbai India

Price Control of Medicines are detrimental for India’s Healthcare Growth Story & Drives – Kewal Handa, MD, Pfizer & Wyeth India.

Price Control of Medicines are detrimental for India’s Healthcare Growth Story & Drives – Kewal Handa, MD, Pfizer & Wyeth India.
Health Insurance & Availability should be the focus & not the Govt’s Draft Policy. Canada & Philippines growth is due to non-Price Control.

Maharashtra, Mumbai, Friday 6th January 2011 : Union Health Ministry's plan to bring 348 drugs of the National List of Essential Medicines (NLEM) under price control is facing stiff resistance from the pharma industry. A close scrutiny will reveal that around 75% of the industry will come under price control in case the draft National Pharmaceuticals Pricing Policy (NPPP, 2011) is pursued in its present form. Cautioning that it will cripple the pharma sector, Kewal Handa, said the government estimates that the new policy would bring 60% of the Rs 48,200-crore domestic formulation industry under the pricing control compared to 20% earlier. The ministry says, more than 300 drugs were under the Drug Price Control Order (DPCO) in the early 1980s that was subsequently reduced to 140 in 1987. At present, prices of only 74 bulk drugs and formulations, containing any of these scheduled drugs, are under the price control regime. Once a medicine is brought under DPCO, it cannot be sold at a price higher than that fixed by the government. NLEM has 348 medicines that cover 489 formulations, including 16 fixed-dose combinations. These drugs are considered to be adequate to meet the common contemporary health needs of the general population.
Addressing at 4th Annual Pharmaceutical Leadership Summit & Awards 2011 in Mumbai (www.pharmasummit.in ) organized by Asia’s leading Pharma bi-monthly Pharma Leaders Magazine ( www.pharmaleaders.co.in ) , Kewal Handa, Managing Director of Pfizer & Wyeth, Handa said Price Control has become redundant & is unnecessary & instead it will create more troubles & hit the healthcare Industry. In an exclusive Keynote address Handa said The DPCO 1995 has been there for more than a decade, what is the learning of all these in the past, the number of players that were there in DPCO has been substantially come down & the number of molecules have also drastically come down. The number of new introductions in the old DPC0 ( Drug Price Control Authority) are less than that which are there in outside purview of DPCO. Ironically One Third of the products that are there in 1995 have gone to China. Therefore price control does not work & If you look at the global experiences, you will find the correct assessment. Lets look at Canada when the price control was introduced, in a span of three years the Research & Development ( R & D) came down by 50%. Look at Brazil, you will find there also similar experience . And the prices in Philippines are reduced almost by 50 % & who got benefited of all these exercises, the Branded Generic players, the movers from Generics to Branded Generic Players. Now we have a similar experience in India, which is difficult to understand, as the reason given to reduce the price is quite disturbing . If you look at the history of price rises in India since last five years you will see clearly that the price rise is not more than 2% in DPCO as well as in the non DPCO Categories. And if you look at the competition, it is very intense & fierce , for every molecule we have not less than 50 players competing & if that’s the scenario in india where the prices are lowest in the world, is there the need to reduce the prices? Is there a need to bring everything to a single conversant price?? do you want to accommodate our healthcare industry. Do you want to play with the lives of the people cautions Kewal Handa.
He goes on to say that today we need a different treatment, we need to increase our accessibility, we need to increase our availability & more importantly we need to provide Healthcare Insurance to the needy who cant afford to medical treatment . Almost 60% of Indian population can afford to have mobile phones & there is only 15 % of Indian population who has health insurance & this 60% of people who own mobile phones takes the health coverage & the rest are denied of their basic needs& on the light of the above I don’t think so there will be any need for price control or price reduction. All that you need is critical mass coverage. We need to think & debate how to get this critical mass so that chronic diseases can be covered so that middle class population can avail of affordable medicines. The large chunk of Indian population should get access to basic medicines. He concludes saying “I believe that discussion should be on partnership & Accessibility & india has a very good track record of Price Control which is self regulator. I think the Govt should leave it this method as it is”.