>Piramal Healthcare (ENAM Securities)

CRAMS: STHICCUPS, BUY LT GROWTH INTACT : We met PIHC's CRAMS head to get an update on the business. The meeting reinforced our view that the trend of "Outsourcing to India" is gaining momentum, though growth rates would be muted for the next of couple of quarters (inventory rationalization by innovators). PIHC expects better business mix (higher contribution from early phase development products) and opertional effeciencies will be the key growth drivers for profilability in the next 12-18 months.

Key Highlights - Macro Trends

-> Reduction in lead time in closing contracts, as Big Pharma under severe pressure due to deciling R&D productivity and loss of patented revenues.

-> Big Pharma to focus on optimising R&D spend, as R&D budgets are being cut - increase likelihood of outsourcing.

-> Biotech innovators are under severe pressure (orimarily dependent on VC funding), however, biotech developers have started looking at working directly with Indian companies.

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