>TORRENT PHARMACEUTICALS LIMITED: Supplier of Citalopram and second largest supplier of Zolpidem for the US market; Maintained its dominant position in domestic Cardiovascular (CVS) and Central Nervous System (CNS) segment with new product launches

■ Established in 1994, Torrent Pharmaceuticals Ltd is a flagship company of Torrent group. While its 36 brands lead in their respective molecule segments, six brands of the company appear in India’s top 300 pharma brands.


■ Torrent has successfully maintained its dominant position in domestic Cardiovascular (CVS) and Central Nervous System (CNS) segment with new product launches. In line with industry trend, Torrent has maintained its tilt towards chronic profile over acute.


■ By entering into regulated as well as emerging markets, Torrent has successfully increased its footprint in International markets, which contribute ~51% to the total revenue of the company in FY11. With 27 successful drug launches, Brazil contributes majorly (32%) to company’s international division. Torrent has been the largest faster exports to drive growth for Torrent supplier of Citalopram and second largest supplier of Zolpidem for the US market.


■ In 9MFY12, Torrent recorded sluggish performance mainly in the acute therapy segment, due to increasing competitive pressure. To get back the company on growth path, management has taken corrective action in terms of addition and improvement in efficiency of field force.

■ Apart from regular 25-30 drug launches in domestic market every year, the company is planning to enter into new therapy segments like oncology and infertility to widen its offerings. Similarly in its existing international market, new launches in Brazil and U.S are expected to propel growth.


■ Therefore, we initiate coverage on Torrent Pharmaceuticals Ltd. with a BUY rating and a target price of `660 per share.


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