The 100-year-old Alembic, one of the oldest pharmaceutical companies in India, plans to enter the regulated US and European markets in a big way, with a target of an annual turnover of Rs 1,000 crore within three to five years.
The company has already filed six abbreviated new drug applications (ANDA) with the US Food and Drug Administration (FDA).
The US regulator has already inspected its formulation and active pharmaceutical ingredient (API) or bulk drug manufacturing facilities in Baroda, said Pranav Amin, director, Alembic.
“Though our entry into the US and Europe market was a bit late, we plan to aggressively tap these markets in the coming years. We will file an average 10 drug master files (DMF) and 10 ANDAs with the regulatory agency in the US, every year,” he said.
Pranav is the eldest son of Chirayu C Amin, chairman and managing director of the Rs 750 crore plus Alembic (for the nine months ended December 2007). It was started in 1907 in Baroda as Alembic Chemical Works and manufactured cough syrups, tinctures and alcohol.
The strategy for the US and Europe will be to rope in marketing alliances with leading multinational pharmaceutical companies. Alembic has already signed two to three strategic partnerships for the US market, he said.
Alembic, which acquired the oncology business of Dabur Pharma, last year, is also looking at acquiring brands or marketing facilities in the domestic market, Amin said.
The acquisition helped Alembic, a predominant chronic therapy drug manufacturer, to foray into lifestyle diseases with a portfolio of 24 brands and a marketing force of 400 people.
Currently, Alembic is re-organising the business of the acquired assets, including plans of own manufacturing at Alembic sites in future, he said.
Pranav said the company will set up two new units, a greenfield manufacturing facility at Sikkim with an investment of Rs 20-25 crore for the domestic formulation business and another API facility at Baroda with an investment of Rs 15 crore.
Alembic, which has about seven products in the top drug brands in India with a turnover of more than Rs 10 crore per year, plans to tap the potential in the rural markets. The company will launch at least 20-30 new brands every year in the domestic market, he said.
Its lead brands such as an erythromycin pain killer Althrocin with sales worth Rs 66.70 crore, Roxid (Roxithromycin) with Rs 60.13 crore and anti-infection drug Azithral with Rs 47.21 crore in 2006-07 are among the top-selling drugs in the domestic market.
Understanding Short Term Trading
Before I begin, this blog is not for intraday traders. My definition of short term implies duration of around 2 to 3 months.
Short Term stock picking is no rocket science, but rather a visual interpretation of technical charts. A basic moving average on a time frame chart will show the direction of the securities movement.
Moving averages is a mathematical results calculated by averaging a number of past data points. Moving averages (MA) in it's basic form is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. Once the value of MA has been calculated, they are plotted onto a chart and then connected to create a moving average line. Typical moving averages used for short term trading are 50 MA and 100 MA.
Types of Moving Averages
1) Simple Moving Average (SMA)
SMA is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. The usefulness of the SMA is limited because each point in the data series is weighted the same, regardless of where it occurs in the sequence. Critics argue that the most recent data is more significant than the older data and should have a greater influence on the final result.
2) Exponential Moving Average (EMA)
EMA overcomes the limits of SMA, where more weight is given to the recent prices in an attempt to make it more responsive to new information. When calculating the first point of the EMA, we may notice that there is no value available to use as the previous EMA. This small problem can be solved by starting the calculation with a simple moving average and continuing on with calculating the EMA.
The primary functions of a moving average is to identify trends and reversals, measure the strength of an asset's momentum and determine potential areas where an asset will find support or resistance. Moving averages are lagging indicator, which means they do not predict new trend, but confirm trends once they have been established.
A stock is deemed to be in an uptrend when the price is above a moving average and the average is sloping upward. Conversely, a trader will use a price below a downward sloping average to confirm a downtrend. Many traders will only consider holding a long position in an asset when the price is trading above a moving average.
In general, short-term momentum can be gauged by looking at moving averages that focus on time periods of 50 days or less. Looking at moving averages that are created with a period of 50 to 100 days is generally regarded as a good measure of medium-term momentum. Finally, any moving average that uses 100 days or more in the calculation can be used as a measure of long-term momentum.
Support, resistence and stoploss can be infered by referring the closet MA below or above the market price. The other factor that is used in short term momentum is the trading volume. The moving averages along with the trading volume can provide a better insight to short term movement.
Markets are moved by their largest participants - I believe this is the single most important principle in short-term trading. Accordingly, I track the presence of large traders by determining how much volume is in the market and how that compares to average. Because volume correlates very highly with volatility, the market's relative volume helps you determine the amount of movement likely at any given time frame--and it helps you handicap the odds of trending vs. remaining slow and range bound.
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