Wednesday, November 3, 2010


Venus Remedies has fallen off its peak and has not gained back even after settling of the FCCB problems. The stock is extremely undervalued trading at just 5 times earning. Venus is into oncology formulations and infectious disease segment whichhas  higher entry barriers than any other segment in the pharmaceutical industry.  On a relative valuation basis, the business is trading at steep discount to the sector average ( P/E =16).  Most of the product in their portfolio are "difficult to make".   The current business itself should be worth 3 times more than the current value.

1 comment:

  1. Venus Remedies has become the first India company to get GMP certification from
    Saudi Arabia ( SFDA ) in Oncology & Carbapenem Injectable Space.
    Venus Remedies has become first Indian company to receive SFDA Good Manufacturing
    Practices (GMP) approval from Saudi Arabia for four of its injectable manufacturing
    facilities viz. Oncology Liquid, Oncology Lyophilized, Dry powders Cephalosporin and
    Dry Powder Carbapenem.
    Saudi Arabia has huge potential as vast majority of the pharmaceutical market is provided
    by imports and domestic production accounts for about 15% of the total market. Saudi
    Arabia market tends to favour private pharmacy sector branded pharmaceuticals whereas
    the public sector is more generic lead’.
    With this GMP certification, the company expects to tap a big geography of GCC countries
    comprising of Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates, the
    Sultanate of Oman, and the Republic of Yemen. Access to these GCC countries will
    generate a good business for the company as present Saudi pharmaceutical market is about
    US$ 2.7 billion which is expected to grow at a CAGR of 6.32%, and is estimated to be
    worth US$7.6 and US$9.6 billion by 2014 and 2019 respectively of which Saudi Arabia
    pharmaceutical market is the richest and leads with 49% of the total share.
    Venus Remedies Limited, an existing European Union Good Manufacturing Practices (EUGMP)
    certified pharmaceutical company with addition of Saudi Arbia today possesses 14
    GMP accreditations for its super specialty injectable manufacturing facilities conferred by
    various countries around the globe.
    The certification has let Venus break the tough entry barriers by capturing stringent
    regulatory approval prevalent in these countries. Opportunities now exist for the company
    to explore possibilities to promote its innovative R&D patented products and the company
    sees tremendous potential for growth and expansion. Venus has already been granted
    patents for 4 of its research products from European Union, South Africa, South Korea,
    Ukraine, Australia, New Zealand, and many are in pipe line.
    The company plans to enter Saudi Arabia and other GCC countries by way of providing and
    filing for product registrations CTD dossiers, a regulatory system similar to that prevalent
    in Europe from where the company has already obtained product marketing authorizations
    for some of its products.