Torrent Pharma’s key strengths include a strong domestic market presence, ranking among the top pharmaceutical companies in India, with a well-established portfolio in its core therapeutic areas. Its manufacturing capabilities are supported by multiple facilities in India, some of which have received US FDA approvals, facilitating its presence in regulated markets. The company also emphasizes research and development, aiming for new product launches and expanding its presence in various therapeutic segments, including diabetology, oncology, and women’s healthcare.
Growth strategies for Torrent Pharma involve a multi-pronged approach. Organically, the company focuses on expanding its field force to enhance market penetration, building its consumer healthcare segment, and continuously launching new products across its key therapeutic areas. Geographically, it aims to deepen its presence in existing international markets and selectively enter new ones. Inorganic growth through strategic acquisitions remains a crucial part of its strategy, allowing for faster expansion and access to new markets or therapeutic areas. Furthermore, Torrent Pharma is increasingly emphasizing operational efficiency and cost management to improve profitability and strengthen its financial profile, which is characterized by healthy profitability, robust credit metrics, and strong liquidity. The company is also focusing on reducing debt and improving return ratios, supported by strong cash generation. Sustainability is also becoming an integral part of Torrent Pharma’s business strategy, with a focus on environmental responsibility and social impact.
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The sector is experiencing a transitional quarter, hindered by declining gRevlimid sales and the weight of GST impact on overall growth.
The pharmaceutical sector is expected to experience a soft quarter in Q2FY26, according to brokerages. This period is seen as a transition phase for the industry, with both positive and negative factors at play. On the positive side, several companies have shown promising developments. Lupin, for instance, is expected to benefit from its US launches, which should contribute to its growth. Divi’s, on the other hand, has seen strong traction in its Contract Development and Manufacturing Organization (CDMO) business, which is a promising area for the company. Additionally, Sun Pharmaceuticals and Torrent Pharmaceuticals are expected to post resilient growth in the Indian market, driven by their strong product portfolios and distribution networks.
However, there are also several concerns that are weighing on the sector. One of the key worries is the erosion of sales of Revlimid, a key drug for several pharmaceutical companies. This is expected to have a negative impact on the companies’ top lines. Another concern is the impact of the Goods and Services Tax (GST) on the sector, which has led to destocking in the trade channel. This is expected to affect the sales of pharmaceutical companies in the short term. Furthermore, pricing pressure remains a concern for the sector, as governments and regulatory bodies continue to push for lower prices. Finally, there are also risks related to US tariffs, which could affect the exports of Indian pharmaceutical companies to the US.
Overall, the Q2FY26 quarter is expected to be a challenging one for the pharmaceutical sector, with both positive and negative factors at play. While some companies are expected to benefit from their US launches, CDMO traction, and resilient India growth, others will be impacted by the erosion of key drug sales, GST-led destocking, pricing pressure, and US tariff risks. Brokerages are advising investors to be cautious and selective in their investments in the sector, focusing on companies with strong product portfolios, robust distribution networks, and a proven track record of navigating regulatory challenges. By doing so, investors can navigate the challenges of the transition phase and position themselves for potential growth in the long term.
Late UN Mehta’s humble beginnings scaled to a $21 billion empire: VGRC honors Torrent Group founder’s legacy
The VGRC (Vrijlal G. Rajani Centre) recently celebrated the legacy of late UN Mehta, the founder of the Torrent Group. Mehta’s journey is an inspiring rags-to-riches story, as he transformed a small company into a $21 billion empire.
Starting with a humble beginning, Mehta founded the Torrent Group in 1959 with a mere investment of 25,000. Through his dedication, hard work, and visionary leadership, he expanded the company into various sectors, including pharmaceuticals, power, and infrastructure. Under his guidance, the Torrent Group experienced rapid growth and became one of the leading conglomerates in India.
Mehta’s success can be attributed to his innovative approach, strategic decision-making, and commitment to excellence. He was a pioneer in the Indian pharmaceutical industry and played a crucial role in shaping the country’s healthcare landscape. The Torrent Group’s pharmaceutical division, in particular, has made significant contributions to the development and manufacturing of affordable medicines, making a positive impact on the lives of millions of people.
The VGRC’s celebration of Mehta’s legacy is a tribute to his enduring impact on the business world and his contributions to Indian industry. The event serves as a reminder of the importance of entrepreneurship, innovation, and leadership in driving economic growth and creating opportunities for others.
Mehta’s story is an inspiration to aspiring entrepreneurs and business leaders, demonstrating that with determination, passion, and the right vision, it is possible to achieve greatness and leave a lasting legacy. The Torrent Group’s journey from a small company to a $21 billion empire is a testament to Mehta’s exceptional leadership and his ability to adapt to changing market conditions.
The celebration of Mehta’s legacy also highlights the importance of preserving and promoting India’s business history and cultural heritage. By honoring the achievements of pioneers like Mehta, we can gain valuable insights into the country’s economic development and the role of entrepreneurship in shaping its future.
Overall, the VGRC’s tribute to late UN Mehta is a fitting recognition of his outstanding contributions to Indian industry and his enduring impact on the business world. His legacy continues to inspire and motivate future generations of entrepreneurs and business leaders, reminding them of the power of innovation, hard work, and visionary leadership in achieving success and creating a lasting impact.
Torrent Pharmaceuticals receives demand notices worth Rs 6.63 crore from National Pharmaceutical Pricing Authority
Torrent Pharmaceuticals, a prominent drug manufacturer, has received demand notices from the National Pharmaceutical Pricing Authority (NPPA) totaling over Rs 6.63 crore. The notices, issued under Para 15 of the Drug Price Control Order 2013 (DPCO), impose a penalty on the company for allegedly overcharging for five drugs between January 2016 and November 2018. According to a regulatory filing made by the company on Saturday, the demand notices were dated September 29 and October 1, and were received by Torrent Pharmaceuticals on October 3, 2025.
The NPPA’s decision to issue demand notices to Torrent Pharmaceuticals is a significant development, as it highlights the regulatory authority’s efforts to ensure that drug prices are controlled and that pharmaceutical companies comply with the provisions of the DPCO. The penalty imposed on Torrent Pharmaceuticals is substantial, and it is likely to have implications for the company’s financials and operations.
However, according to the company’s assessment, the demand notices are not expected to have a material impact on its financials, operations, or other activities. This suggests that Torrent Pharmaceuticals is confident that it can absorb the penalty and continue to operate without any significant disruptions. The company’s assessment is likely based on its internal review of the demand notices and its evaluation of the potential financial implications.
As a reliable and trusted news source, it is essential to note that the demand notices issued to Torrent Pharmaceuticals are a reminder of the importance of regulatory compliance in the pharmaceutical industry. The NPPA’s actions demonstrate its commitment to ensuring that drug prices are fair and reasonable, and that pharmaceutical companies are held accountable for any violations of the DPCO. The development is also a testament to the effectiveness of the regulatory framework in India, which is designed to protect the interests of consumers and promote fair competition in the pharmaceutical industry.
In conclusion, the demand notices issued to Torrent Pharmaceuticals by the NPPA are a significant development that highlights the importance of regulatory compliance in the pharmaceutical industry. While the company has stated that the demand notices are not expected to have a material impact on its financials or operations, the development is a reminder of the need for pharmaceutical companies to ensure that they comply with the provisions of the DPCO and other regulatory requirements. As a reliable and trusted news source, we will continue to monitor the situation and provide updates as more information becomes available.
Sharvil Patel, Managing Director of Zydus Lifesciences, has been appointed as the new president of the Indian Pharmaceutical Alliance.
The Indian Pharmaceutical Alliance (IPA) has announced a new leadership team, with Sharvil Patel, Managing Director of Zydus Lifesciences, taking over as President. Patel succeeds Samir Mehta, Chairman of the Torrent Group, and will be joined by Glenn Saldanha, Chairman and Managing Director of Glenmark, who has been appointed as Vice President. This leadership transition comes at a critical time for the Indian pharmaceutical industry, which is poised for growth with recent GST reforms aimed at making healthcare more affordable.
The new leadership team is committed to building on the foundation laid by the IPA, with a focus on innovation, patient access, and quality in healthcare. Patel highlighted the breakthroughs achieved by Zydus Lifesciences, including the development of India’s first new chemical entity (NCE), foray into MedTech, and global CDMO business, as well as advances in vaccines and biologics. He expressed his vision to build a strong, self-reliant India that can deliver high-quality, affordable healthcare solutions.
Saldanha emphasized the importance of innovation in the Indian pharmaceutical industry, citing Glenmark’s recent global partnership with AbbVie as an example of how Indian pharma companies are moving up the innovation curve. He stressed the need for the industry to work together to strengthen India’s leadership in delivering high-quality, affordable, and future-ready healthcare solutions.
Sudarshan Jain, Secretary General of the IPA, noted that the Indian pharmaceutical industry has been playing a vital role in advancing patient care and access. He expressed confidence that the new leadership team will continue to build on recent reforms and breakthroughs, with a focus on innovation, patient access, and quality in healthcare.
As a reliable and trusted news source, it is clear that the Indian pharmaceutical industry is at an inflection point, with significant opportunities for growth and innovation. With the new leadership team at the helm, the IPA is well-positioned to drive the industry forward and achieve its vision of delivering high-quality, affordable healthcare solutions to patients in India and around the world. The IPA’s commitment to innovation, patient access, and quality in healthcare is expected to have a positive impact on the industry and the country as a whole.
Torrent Pharmaceuticals allocates over Rs 35 crore for corporate social responsibility initiatives in FY 2025, as reported by India CSR.
Torrent Pharmaceuticals Limited has demonstrated its commitment to corporate social responsibility (CSR) by investing Rs 35.03 crores in various initiatives during the financial year 2024-25. This amount exceeds the company’s statutory obligation of Rs 33.31 crores, showcasing its dedication to creating a positive impact on society. The company’s CSR vision is guided by its philosophy of “Happiness for All,” which focuses on advancing pediatric healthcare, environmental sustainability, education, and rural community development.
One of the company’s flagship CSR programs is REACH (Reach EAch CHild), which aims to provide advanced pediatric healthcare services. During FY 2025,Torrent invested Rs 19.59 crores in this program, which included upgrading the UNM Children Hospital in Gujarat with advanced infrastructure, such as a liquid oxygen tank and a modular operating theatre. The company also conducted pediatric surgical screening camps in rural districts, reaching over 2,100 villages and screening children for various health issues.
In addition to healthcare, Torrent has also made significant investments in environmental sustainability through its Pratiti initiative. The company invested Rs 12.48 crores in FY 2025 to develop public parks, gardens, and lakes, which not only beautify neighborhoods but also recharge groundwater, improve air quality, and promote healthier lifestyles. Torrent has also extended its CSR efforts to communities surrounding its manufacturing plants, investing in school upgrades, panchayat infrastructure, and public amenities.
The company’s CSR spending has created or acquired 90 capital assets, including buildings, vehicles, and equipment, which will have a lasting impact on the communities it serves. Torrent’s approach to CSR is guided by its principles of transparency, integrity, and accountability, ensuring that its efforts are effective and sustainable. The company’s commitment to CSR has not only exceeded its statutory obligation but has also demonstrated its dedication to creating a positive impact on society and contributing to India’s sustainable development journey.
Torrent’s CSR model is human-centered, focusing on preserving India’s future generations through children’s healthcare, improving quality of life in cities through greener spaces, and ensuring employability for tomorrow’s workforce through skill development. The company’s efforts have been recognized, and it stands as a model for businesses to meaningfully contribute to India’s sustainable development journey. Overall, Torrent Pharmaceuticals Limited’s CSR spending of Rs 35.03 crores in FY 2025 is a testament to its philosophy of responsibility, compassion, and long-term vision.
Some of the key highlights of Torrent’s CSR spending in FY 2025 include:
* Rs 19.59 crores invested in the REACH program for advanced pediatric healthcare
* Rs 12.48 crores invested in the Pratiti initiative for environmental sustainability
* Rs 2.21 crores invested in community development near manufacturing plants
* Rs 0.27 crores invested in the PAGE Foundation for pharma talent development
* 90 capital assets created or acquired through CSR spending
The company’s CSR efforts have been guided by its principles of transparency, integrity, and accountability, ensuring that its efforts are effective and sustainable. Torrent’s commitment to CSR has demonstrated its dedication to creating a positive impact on society and contributing to India’s sustainable development journey.
The company has also reported its consolidated financial performance indicators for FY 2024-25, which include revenue of Rs 11,516 crores, operating EBITDA of Rs 3,721 crores, and profit after tax of Rs 1,911 crores. Overall, Torrent Pharmaceuticals Limited’s CSR spending and financial performance demonstrate its commitment to creating a positive impact on society while also driving business growth.
In conclusion, Torrent Pharmaceuticals Limited’s CSR spending of Rs 35.03 crores in FY 2025 is a testament to its philosophy of responsibility, compassion, and long-term vision. The company’s efforts have been guided by its principles of transparency, integrity, and accountability, ensuring that its efforts are effective and sustainable. Torrent’s commitment to CSR has demonstrated its dedication to creating a positive impact on society and contributing to India’s sustainable development journey.
The company’s CSR model is human-centered, focusing on preserving India’s future generations through children’s healthcare, improving quality of life in cities through greener spaces, and ensuring employability for tomorrow’s workforce through skill development. The company’s efforts have been recognized, and it stands as a model for businesses to meaningfully contribute to India’s sustainable development journey.
Overall, Torrent Pharmaceuticals Limited’s CSR spending and financial performance demonstrate its commitment to creating a positive impact on society while also driving business growth. The company’s approach to CSR is a testament to its philosophy of responsibility, compassion, and long-term vision, and it will continue to contribute to India’s sustainable development journey in the years to come.
Stock Market Updates for Torrent Pharma
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Torrent Pharmaceuticals issues Rs 200 crore worth of commercial paper.
Torrent Pharmaceuticals has allocated commercial paper worth Rs 200 crore. The company announced that it has allotted commercial paper with a total value of Rs 200 crore, which will be used to meet its working capital requirements and other business needs.
Commercial paper is a type of short-term debt instrument that companies use to raise funds for their immediate needs. It is a low-cost and flexible way for companies to borrow money, and it is often used to meet working capital requirements, such as paying supplier invoices or managing cash flow.
The allotment of commercial paper by Torrent Pharmaceuticals indicates that the company is looking to raise funds to support its business operations. The pharmaceutical industry is highly competitive, and companies need to have sufficient funds to invest in research and development, marketing, and other activities to stay ahead of the competition.
Torrent Pharmaceuticals is one of the leading pharmaceutical companies in India, with a strong presence in the domestic market and a growing presence in international markets. The company has a diverse portfolio of products, including prescription and over-the-counter medications, and it has a strong research and development pipeline.
The allotment of commercial paper by Torrent Pharmaceuticals is a positive development for the company, as it will provide it with the necessary funds to support its business operations and achieve its growth objectives. The company’s decision to raise funds through commercial paper also reflects its confidence in its ability to generate cash flows and meet its debt obligations.
In the current market scenario, the pharmaceutical industry is facing several challenges, including intense competition, regulatory pressures, and pricing constraints. However, Torrent Pharmaceuticals has a strong track record of growth and profitability, and it is well-positioned to navigate these challenges and achieve its long-term objectives.
Overall, the allotment of commercial paper by Torrent Pharmaceuticals is a significant development for the company, and it reflects its commitment to growing its business and achieving its strategic objectives. The company’s ability to raise funds through commercial paper will provide it with the necessary resources to invest in its business and drive growth, and it is a positive sign for investors and stakeholders.
Prominent pharmaceutical companies such as Sun Pharma, Cipla, Dr Reddy’s, Zydus Lifesciences, Divi’s Labs, and Torrent Pharma are navigating the complexities of the pharma value chain.
The pharmaceutical industry is complex, with various segments such as innovator products, generics, branded generics, and API. Indian companies are making headway globally, and understanding the industry’s intricacies is crucial for those seeking opportunities. Innovator companies undertake significant risks, with only 8 out of 100 molecules crossing the finish line, and patent protection is the incentive for undertaking this risk. Roche, a leading innovator, reported a 30% PAT margin in FY24, with R&D expenses at 20% of sales.
Indian pharma is sustained by generics, but companies like Sun Pharma and Glenmark Pharma are making modest beginnings in innovation. Sun Pharma’s innovative medicine segment has 11 products, including Ilumya, which reported sales of $680 million in FY25. Glenmark Pharma’s Ichnos Glenmark Innovation (IGI) recently entered a licensing agreement with AbbVie for its ISB 2001, receiving $700 million in milestone payments.
The generics business is dependent on the level of competition, with prices declining sharply as the number of competitors increases. Branded generics, however, offer higher value, with companies like Mankind Pharma and Torrent Pharma generating significant revenues from their branded portfolios. Complex generics, such as Lupin’s generic Spiriva, hold a value proposition in regulated markets, with strong revenue streams and above-average margins.
Biosimilars are a growing segment, with companies like Biocon developing portfolios. The biosimilar approval process involves clinical trials, increasing the cost of development to $200-300 million. CRDMO (contract research and development and manufacturing outsourcing) is another emerging segment, with companies like Divi’s Labs and Anthem Biosciences securing a portion of the innovators’ drug development process.
The API business is largely commoditized, with prices dependent on tonnage. However, high-potent APIs and complex manufacturing processes can fetch higher margins. India has focused on API development with its PLI schemes, and companies like Aurobindo Pharma are establishing API facilities.
For investors, a strong branded generic base supplemented by a wide innovator portfolio is essential for trail-blazing growth. Complex generics and CRDMO are emerging sectors, with China+1 and the US Biosecure Act providing tailwinds. The right mix of business segments and prospects is crucial for growth, and understanding the industry’s intricacies is essential for those seeking opportunities in the pharmaceutical sector.
Key takeaways include:
* Innovator companies undertake significant risks, but patent protection provides an incentive.
* Indian pharma is sustained by generics, but companies are making modest beginnings in innovation.
* Branded generics offer higher value, with companies generating significant revenues from their branded portfolios.
* Complex generics hold a value proposition in regulated markets, with strong revenue streams and above-average margins.
* Biosimilars are a growing segment, with companies developing portfolios.
* CRDMO is an emerging segment, with companies securing a portion of the innovators’ drug development process.
* The API business is largely commoditized, but high-potent APIs and complex manufacturing processes can fetch higher margins.
Gujarat Emerges as a Thriving Pharmaceutical Hub in India
Gujarat is playing a vital role in India’s pharmaceutical industry, driven by government initiatives and investment opportunities. The state is home to major pharmaceutical companies such as Sun Pharma, Zydus Cadila, and Intas Pharmaceuticals, contributing significantly to the country’s pharmaceutical output. The North Gujarat region, in particular, accounts for 12% of the state’s pharmaceutical manufacturing, making it a crucial hub for the industry.
Mehsana is a notable location in North Gujarat, offering substantial prospects in bulk drug production, Active Pharmaceutical Ingredients (APIs), intermediates, and formulations. Torrent Pharma, a prominent company in the region, operates a USFDA-approved facility, producing insulin for Novo Nordisk, making it India’s sole contract manufacturer of insulin for the company. This highlights the region’s capabilities in producing high-quality pharmaceutical products.
Patan, another district in North Gujarat, is also making significant contributions to the pharmaceutical sector, with a strong base of micro, small, and medium enterprises (MSMEs) specializing in injectables and formulations. The district is also gaining traction in the MedTech sector, with companies producing vascular interventional devices and medical equipment, such as hospital trolleys. The region’s educational institutions support this growth, with a focus on healthcare and pharmaceutical education.
The region’s comprehensive healthcare network, comprising 318 Primary Health Centres and 75 Community Health Centres, provides robust healthcare services across government and private sectors. This network is expected to be further strengthened by the forthcoming Vibrant Gujarat Regional Conference (VGRC), which aims to foster collaboration among the government, industry, and academia. The conference is expected to have a significant impact on the pharmaceutical sector’s trajectory, driving growth and innovation in the region.
Overall, North Gujarat is poised to become a major hub for the pharmaceutical industry, driven by government support, investment opportunities, and a strong network of educational institutions and healthcare services. The region’s potential for growth and innovation is significant, and the forthcoming VGRC is expected to play a key role in shaping the sector’s future. With its strong foundation in pharmaceutical manufacturing, North Gujarat is well-positioned to contribute to India’s growing pharmaceutical industry.
Next-gen leaders are revitalizing India’s pharmaceutical landscape as family-run drug empires successfully navigate leadership transitions.
India’s largest pharmaceutical companies, such as Sun Pharmaceutical Industries Ltd and Torrent Pharmaceuticals Ltd, are preparing the next generation of their promoter families to take over the reins. Recently, Torrent Pharma announced the appointment of Aman Mehta, son of chairman Samir Mehta, as managing director, while Sun Pharma appointed Vidhi Shanghvi, daughter of founder Dilip Shanghvi, as a whole-time director. This trend is not limited to these companies, as other pharma firms like Lupin Ltd have also seen the next generation of their promoter families take charge.
Experts believe that such successions must be planned with foresight, factoring in ideal transition times, grooming, and the role of other veteran executives in shaping up the incoming leaders. A good template for succession planning is one where there is a fair bit of overlap between the senior generation and the next generation, allowing the next generation to experience different parts of the business. Aman Mehta, for example, has been involved with Torrent Pharma’s India business and played a key role in the integration of the Unichem Laboratories Ltd acquisition.
Similarly, Aalok Shanghvi, son of Dilip Shanghvi, has handled various roles in marketing, research and development, and project management, and has headed Sun’s business in Bangladesh and emerging markets. Vidhi Shanghvi began her career at Sun Pharma in 2012 as a brand manager and took over as business head of the company’s consumer healthcare business in 2015.
Experts emphasize that promoters need to groom their progeny from the shop floor, exposing them to internal and external stakeholders, and plan the role of incumbent senior executives in the transition process. An ideal transition would involve a transition of erstwhile leadership as well, with some stalwarts remaining in advisory positions. Empowering the successors, whether family members or professional teams, and ensuring they understand the company’s needs is crucial for the continuity of a successful business.
However, corporate successions can be tricky, and India’s corporate landscape is riddled with high-profile family disputes, even in instances where promoter families had drawn up legal frameworks to ensure a smooth transition. The challenges for the next generation include developing their own styles and strategies while continuing the company’s growth and legacy, and retaining the differentiating factor or competitive edge of the company. For companies facing a vacuum in finding successors from within the family, the focus needs to be on bringing in professional talent who align with the firm’s culture and vision, while fostering loyalty and longevity in leadership. Ultimately, empowering the successors and ensuring they understand the company’s needs is key to a successful transition.
Today’s Earnings Schedule: Q4 Results from Hindalco, Dixon Tech, Zydus Life, and Torrent Pharma Released – Expert Earnings Projections
Several Indian companies are set to announce their fourth-quarter results on Tuesday, including Hindalco Industries Ltd., Dixon Technologies (India) Ltd., Zydus Lifesciences Ltd., and Torrent Pharmaceuticals Ltd. According to consensus analysts’ estimates compiled by Bloomberg, here’s what can be expected from each company:
Hindalco Industries Ltd. is expected to report a 6% increase in consolidated revenue, reaching Rs 59,251 crore. The company’s estimated Earnings Before Interest, Taxes, Depreciation, and Amortization (Ebitda) is Rs 8,048 crore, with a margin of 13.6%. The net profit is forecasted to be Rs 3,555 crore.
Dixon Technologies (India) Ltd. is anticipated to report revenue of Rs 10,748 crore, with an Ebitda of Rs 403 crore and a margin of 3.7%. The company’s net profit is expected to be Rs 217 crore.
Zydus Lifesciences Ltd. is expected to report revenue of Rs 6,434 crore, with an Ebitda of Rs 2,026 crore and a margin of 31.5%. The company’s net profit is forecasted to be Rs 1,370 crore.
Torrent Pharmaceuticals Ltd. is estimated to report revenue of Rs 2,988 crore, with an Ebitda of Rs 981 crore and a margin of 32.8%. The company’s net profit is expected to be Rs 524 crore.
These estimates suggest that all four companies are expected to report significant revenue and profit growth in the fourth quarter. Hindalco’s revenue growth is expected to be driven by a rebound in demand for aluminum and copper products. Dixon Technologies’ revenue growth is expected to be driven by an increase in demand for electronic products. Zydus Lifesciences and Torrent Pharmaceuticals are expected to benefit from a strong performance in the pharmaceutical sector.
Overall, the fourth-quarter results of these companies are expected to provide insights into the performance of various industries, including metals, electronics, and pharmaceuticals. The results will also be closely watched by investors and analysts to gauge the impact of various macroeconomic factors on the companies’ performance.
Gujarat’s Vyara Civil Hospital shift to PPP model Spells Agony for Tribals and Patients
In 2020, the NITI Aayog recommended that state governments hand over the management of public hospitals to private players. However, the Gujarat government had already taken this step in 2009, when it privatized the Bhuj Civil Hospital, which was rebuilt after the 2001 earthquake at a cost of Rs 100 crore from the Prime Minister’s Relief Fund. The hospital was handed over to the Adani Foundation on a 99-year lease under a Public-Private Partnership (PPP) model. The hospital was renamed the G.K. General Hospital and integrated with the Gujarat Adani Institute of Medical Sciences (GAIMS), which offers undergraduate and postgraduate courses in medicine.
Since then, the Gujarat government has privatized two more hospitals, the Dahod Civil Hospital, which was handed over to the Zydus Group in 2017, and the Vyara Civil Hospital, which was initially supposed to be handed over to the Torrent Group but was met with protests and has now been taken over by the UNM Foundation, a non-profit arm of the Torrent Group. The privatization of these hospitals has been mired in controversies, with allegations of exorbitant fees being charged to patients, poor treatment, and high infant and child mortality rates.
For instance, between January and May 2018, over 110 newborn babies died at the G.K. General Hospital, and in 2019, the hospital was accused of charging high fees for outpatient department (OPD) treatments, which were previously free. The hospital has also been criticized for the high fees charged for undergraduate and postgraduate courses, with the fee for a five-year MBBS program ranging from Rs 29-43 lakh for government and NRI quota seats, and Rs 80.5 lakh for management quota seats.
Similarly, the Zydus Medical College and Hospital charges Rs 6.85 lakh per year for 132 government quota PG seats, Rs 15 lakh a year for management quota seats, and Rs 19.5 lakh each for the 23 NRI seats. In contrast, the annual fee for a three-year PG program in government-run medical colleges in Gujarat is Rs 25,000, and for a five-year undergraduate program, Rs 15,000.
The companies involved in the privatization of these hospitals have also been accused of having close ties with the BJP government, with the Torrent Group purchasing electoral bonds worth Rs 184 crore between 2019 and 2024, and the Zydus Group giving bonds totaling Rs 29 crore to the BJP between 2022 and 2023. The privatization of these hospitals has raised concerns about the impact on public healthcare in Gujarat, particularly in rural areas where access to healthcare is already limited. The controversy surrounding the privatization of these hospitals highlights the need for greater transparency and accountability in the management of public healthcare facilities.
Citi cites low risk of US tariffs on Indian pharma, favoring Torrent Pharma and Divi’s.
Citibank has analyzed the potential impact of US tariffs on Indian pharmaceutical companies and has assigned a low probability to such an event. The brokerage firm simulated a 10% tariff scenario and found that companies with a high exposure to US generics, such as Zydus, Dr. Reddy’s Laboratories, and Aurobindo Pharma, could face a 9-12% reduction in earnings before interest, taxes, depreciation, and amortization (EBITDA). However, if part of the tariffs is passed on to buyers, the impact could be reduced to 5-6%.
On the other hand, companies with lower exposure to US generics, such as Torrent Pharma, Sun Pharma, and Divi’s Laboratories, would be less affected, with an estimated 1-3% hit to EBITDA. Citi’s preferred picks in the Indian pharmaceutical sector, these companies have diversified portfolios and are less reliant on the US generics market.
The report also notes that if tariffs are imposed, they may not be fully passed on to US buyers due to various factors, including competition, industry fragmentation, and the influence of buying consortiums focused on lowering prices. Citi believes that the probability of tariffs on Indian generics is low, citing the limited manufacturing of generics in the US, the high dependence on Indian generics, and the risk of drug shortages if Indian suppliers exit the market.
The brokerage firm concludes that while the imposition of tariffs is a low-probability event, the potential impact on Indian pharmaceutical companies varies significantly based on their exposure to the US generics market. Overall, the report suggests that investors should focus on companies with diversified portfolios and lower reliance on the US generics market, such as Torrent Pharma, Sun Pharma, and Divi’s Laboratories.
Torrent Pharmaceuticals’ (NSE:TORNTPHARM) appears to be well-equipped to navigate its debt obligations with confidence.
The article discusses Torrent Pharmaceuticals’ (NSE:TORNTPHARM) ability to manage its debt with ease. The company has a debt-to-EBITDA ratio of 1.1, which is manageable, and its interest coverage ratio is a significant 12.3, indicating that the company has a strong ability to pay its debts. The company’s debt level has been increasing due to the acquisition of HOS, but the benefits from the acquisition, such as increased profitability and revenue, have helped to alleviate the debt burden.
The article notes that Torrent Pharmaceuticals has a strong track record of generating positive cash flows, which has helped to reduce its debt over the years. The company has also been actively managing its Working Capital Adjudication (WCA) process, which has led to a reduction in its debt levels.
The article also provides a brief overview of Torrent Pharmaceuticals’ recent performance, including its revenue and profitability growth, as well as its dividend yield and shareholder return. The company has a strong track record of paying dividends, with a dividend yield of 1.1%, making it an attractive option for income-seeking investors.
In conclusion, the article suggests that Torrent Pharmaceuticals is well-positioned to manage its debt with ease, thanks to its strong cash flows, efficient use of working capital, and proven track record of generating positive returns for shareholders. Its decent interest coverage ratio and manageable debt-to-EBITDA ratio also indicate that the company is capable of servicing its debt comfortably.
However, it’s worth noting that the article is just a brief summary, and it would be a good idea to review the company’s latest financials and reports to get a more comprehensive understanding of its financial health and borrowing capacity.
This popular diabetes medication is set to get a significant price cut, dropping from Rs 60 to just Rs 9 per unit.
The cost of Empagliflozin, a crucial drug for managing diabetes and its associated conditions, is set to drop significantly in India. The price of the medicine, which was previously around Rs 60 per tablet, will be reduced to just Rs 9 per tablet, making it more accessible to millions of diabetes patients in the country. This development comes after the patent for the drug, which was previously held by German pharmaceutical company Boehringer Ingelheim, expired on March 11.
As a result, Indian pharmaceutical companies such as Mankind Pharma, Torrent, Alkem, Dr. Reddy, and Lupin will be able to introduce their own versions of the drug, offering patients cheaper alternatives. Mankind Pharma, for example, plans to offer the drug at a price 90% lower than the innovator company, making it more affordable for patients.
Empagliflozin plays a crucial role in preventing heart failure and delaying kidney failure, making it a vital medication for those with diabetes. However, its high cost has previously made it difficult for many to access. The introduction of more affordable options from Indian companies is expected to bring significant benefits to millions of patients.
The reduced price of Empagliflozin is poised to provide much-needed financial relief to diabetes patients, who often face the burden of out-of-pocket medication expenses. In India, over 10.1 crore people are living with diabetes, and limited insurance coverage often leaves patients to shoulder medication costs independently. The availability of more affordable options is expected to make a significant difference in the lives of these patients.
The economic burden of diabetes in India is substantial, and the reduced price of Empagliflozin is a welcome development for diabetic patients across the country. With the introduction of more affordable alternatives, millions of patients will have access to a vital medication, allowing them to better manage their condition and improve their overall health.