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Saturday, November 27, 2010

Company: Fresenius Kabi Oncology Ltd: Ready to step up!!

Fresenius Kabi Oncology Ltd
CMP: 108.45
Market Cap: 1715.68Cr
Sales TTM: 422Cr
Gross Profit TTM: 100.5Cr
Net Profit TTM: 72Cr
Debt: 269Cr
Reserves: 476.28Cr

Fresenius Kabi Oncology Limited strives to provide state-of-the-art third generation chemotherapeutic drugs right from development to manufacturing & marketing across the globe. It is all set to become a leading player in Oncology (Cancer) generics by virtue of a comprehensive product portfolio of injectables, oral cytotoxics, cytostatics, intermediates and active pharmaceutical ingredients (APIs). Fresenius Kabi Oncology Limited product portfolio and manufacturing facilities are being endorsed by world's leading regulatory authorities.

Fresenius Kabi Oncology Limited is a 90% subsidiary of Fresenius Kabi. Fresenius Kabi specialize in therapy and care for critically and chronically ill patients.. Fresenius Kabi is the leader in infusion therapy and clinical nutrition in Europe and in its most important countries of Latin America and Asia Pacific. Within I.V. generic drugs, Fresenius Kabi counts among the leading suppliers in the U.S. market. 

All over the world more than 21,000 employees are committed to improving the quality of life of critically and chronically ill patients with innovative products for patients in hospitals and outpatients.

Fresenius Kabi Oncology Limited is erstwhile Dabur Pharmaceuticals which has been sold to Fresenius Kabi at Rs 75 per share.

It is a well known fact that India is strong in the generics market and Fresenius Kabi Oncology Limited is going to specialize in third generation generics for oncology. The good part is the parent company is a well established brand world wide and these generics are to be sold as Fresenius Kabi products. 

Reading through their latest annual report we see that Formulations unit in Baddi (India) and active pharmaceutical Ingredients unit in Kalyani have been  USFDA approved. the API unit in Kalyani is undergoing expansion project I and even before Project I is completed Expansion project II has already begun. We can also see that the company has been reporting better results starting year ending March 2010. 

Conclusion: Fresenius Kabi Oncology Limited is a focussed organization with a clear mandate to concentrate on generic oncology drugs. With a parent company with 90% stake in Fresenius Kabi Oncology Limited we can expect company to start delivering great numbers in the future consistently.. Company does not seem to be a deep value buy but it is specialized and concentrated in specific area where the parent company has inherent strengths. It will contribute to parent company revenues and complement and grow in a symbiotic relationship.. Worth keeping a watch and entering into it..

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