Strides Shasun believes Malaria suppository is an attractive market

Strides to witness greenshoots from the WHO prequalification of malaria suppository and USFDA approval for the facilities

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Strides

Post the washout of Q4FY18 results, Strides Shasun has started showing some signs of recovery.  It has received USFDA approval to gTamiflu and gNizoral as well as WHO pre-qualification approval to Malaria suppository for Africa market.

Solara listing – The procedure has been completed and company has filed the documents with the regulatory authority, clearance can be received at any time, which will pave way for listing of Solara.

Malaria suppository – This is a novel drug and Strides Shasun believes that there is an attractive market for this product in the African market. Apart from Strides Shasun, Cipla is the only other company which has received a WHO prequalification. While the market size cannot be quantified at this stage, the dynamics are favourable for this product. The company has plans to take this product to 25 countries.

gTamiflu – Company is ready to launch gTamiflu in the US market. There are 4 players (Natco/Alvogen, Lupin, Amneal Pharmaceuticals and Hetero Labs) already in the generic market. It seems to be a good opportunity for Strides to scale its US business.

On the regulatory side, company has said that it is ready for the USFDA inspection at any day and all facilities are fully compliant with the regulatory bodies.

Why is this important

WHO prequalification of the Malaria suppository along with fully compliant facilities opens up a huge under penetrated market for Strides Shasun indicating that the worst is over for the Company. Also the notification regarding Solara’s listing provides comfort.

Stock to be impacted

WHO prequalifications, listing of Solara and USFDA approvals – all provide greenshoots for Strides Shasun (CMP: Rs 392, MCap: Rs 3517 crs, 19.8x FY2019E PE)

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