Neuland Laboratories concall was today at 5:00 PM

@unseenvalue @darshanvmehta1 @drprashantmish6 @punitbansal14 @suru27 @rdkriplani

Hope
customer book of Neuland to remain as booked and full just like today's conference call😂

Here are the Key takeaways from the earning call👇

Business Updates:
• Price growth drivers were Levetiracetam and Mirtazapine.
• Commercialization of Unit 3 has begun and 2 API have been shipped in.
• Neuland has filed Donepezil based with USDFA.
Q from @unseenvalue sir: Growth opportunity in Peptide (esp. on generic)

• Involved in many molecule discovery in generic side
• Co. has seen value on generic capacity, GDS being continuous play for the company
• Co. may have partnership for generic side of business as well.
NCE Buinssess:

• Portfolio of PMS project has mix of both orphan and convectional drugs.
• Few molecules of NCE has started generating revenue and benefits of those molecule will be discovered in future.
CMS Buinsess:
• Most of the molecules in pipeline has been increased and some are even in commercialization.
• New business momentum continues to remain strong, and lot of business are attracted through referral business.
• More focus remains on the quality of the molecules.
De-risking the supply chain

• Neuland has decrease the raw material dependency from China, which was ~60% previously have been brought down to just 10% now which is also for cost competitiveness.
Unit 3:
• Current it is fairly underutlize as it has geographical larger side.
• Next 2-3 growth will be from the utilization of the Unit 3.
• Expansion will be based on growth company sees in future.
• Range of utlization stays at 75-80% with that productive plant.
Lower Margin, despite of operating leverage:
• As unit 3 is not entirely commercialize, operating leverage has not kicked in.
• With more investment and increasing capacity, there will be increase in margin.
Q from @darshanvmehta1 sir on margin under-stated
• Margin understatement is majorly more because of company wants to be conservative in terms of margins.

CAPEX- Currently company has done 80 crores for expansion and it will same next acquisition for better growth proposition.
Q from @suru27 sir on future of the business segment
• Volatility of the segment is expected to be reduced, as Prime, Speciality, CMS entire segment has received huge growth in the past, resulting in decline in volatility.
• Neuland is commanding higher margins and are expecting volatility in margins to remain on line.

• Utilziation target till FY 2022 is difficult predict as there will increasing in product block which will decrease the utilization and subsequently go up.

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Two things can be true at once:
1. There is an issue with hostility some academics have faced on some issues
2. Another academic who himself uses threats of legal action to bully colleagues into silence is not a good faith champion of the free speech cause


I have kept quiet about Matthew's recent outpourings on here but as my estwhile co-author has now seen fit to portray me as an enabler of oppression I think I have a right to reply. So I will.

I consider Matthew to be a colleague and a friend, and we had a longstanding agreement not to engage in disputes on twitter. I disagree with much in the article @UOzkirimli wrote on his research in @openDemocracy but I strongly support his right to express such critical views

I therefore find it outrageous that Matthew saw fit to bully @openDemocracy with legal threats, seeking it seems to stifle criticism of his own work. Such behaviour is simply wrong, and completely inconsistent with an academic commitment to free speech.

I am not embroiling myself in the various other cases Matt lists because, unlike him, I think attention to the detail matters and I don't have time to research each of these cases in detail.

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