Pharma company Lupin Ltd said it has signed an agreement with Farmanguinhos, Brazil's public sector unit in healthcare for the supply of its 4 in 1 combination drug of Rifampicin, Isoniazide, Ethambutol and Pyrazinamide for tuberculosis.
Lupin will supply the product for the next five years and also provide Farmanguinhos with the desired support for the set up of its local manufacturing in future, a company said in a statement.
With this agreement between Lupin and Farmanguinhos in place, Farmanguinhos has entered a commitment to produce and supply the 4 in 1 combination drug to the Department of Health (Brazil), which will result in substantial savings for the government, the release said.
The 4 in 1 combination reduces the pill burden on the patient drastically, particular as the treatment lasts for at least six months. As per WHO, the treatment abandonment rate has fallen from 8% to only 5% due to this reduced pill burden provided by the combination drug. WHO estimates indicate that globally there are 9.2 million new cases each year resulting in 1.7 million deaths.
In Brazil alone, it is estimated that approximately 57 million people have already been infected by this disease with 83,000 new cases annually.
On Wednesday, Lupin ended 0.51% down at Rs486.55 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.96% to 20,301 points.
A risk of shortfall in production targets, the proposed pay revision for Coal India, and increased share of washed coal may put upward pressure on coal prices and put power companies at the losing end
Black gold is about to become dearer. And the ramifications are going to be felt all around.
In a report to its institutional clients today, brokerage house CLSA said that it had met with the chairman and managing director (CMD) of Coal India Ltd (CIL), Partha Bhattacharyya, in Kolkata. "The CMD highlighted the risk of a shortfall in production targets due to a moratorium enforced by the Ministry of Environment and Forests (MoEF) in giving clearances for mining projects in critically-polluted areas. Coal prices are likely to go up in FY12 with the impending pay revision for CIL, which is due in July 2011. With CIL planning to increase the share of washed coal in the overall mix significantly over the course of the next few years, the fuel bill would rise even further for coal companies. The companies in our coverage which are best placed to handle this risk are NTPC (National Thermal Power Corporation), Tata Power and JSPL (Jindal Steel and Power Ltd)."
CLSA points out that the frequency of coal-price hikes by CIL has increased, of late. After a hike in FY01, it had gone in for a hike only in FY05 and subsequently in FY08. However, it hiked prices in FY10 by 11%-another price hike is expected in FY12.
Due to the MoEF moratorium till 31st March on the consideration of environmental clearances for projects which are in critically-polluted areas, CIL expects its FY11 and FY12 production to fall short by 16 million tonnes (MT) and 39MT, respectively.
Again, CIL is increasing the proportion of its washed coal output-it will hike 40% of its total output by FY17. "Washing leads to a 20% volume loss-which would result in a $2/tonne additional cost, an approximately15% increase in CV, 6% reduction in ash and around 100% increase in realisations. CIL plans to price its washed coal at 15% discount to imported coal-adjusted for the quality of coal," Mr Bhattacharyya said.
Another factor that will put pressure on coal prices is the availability of rakes-according to the brokerage, CIL had asked for 185 rakes per day, but the actual availability of rakes varies from 170-190 per day.
To conclude, the report says that with CIL's production likely to be down by 3.5% for FY11 (vis-à-vis its target) the companies dependent on coal linkages will either have to import more coal to meet the shortfall or will have lower utilisation rates. Those power companies that don't have a pass-through of fuel costs in their PPAs (Power Purchase Agreements) would see a hit in their profitability, because a higher proportion of washed coal in the overall coal output would imply higher input costs for power utilities.
The brokerage adds, "The most exposed (companies) are Adani, Jaiprakash Power, Sterlite Energy and CESC (Ltd)."
(This article is based on secondary research. The report is for information only. None of the stock information, data and company information presented herein constitutes a recommendation or solicitation of any offer to buy or sell any securities. Investors must do their own research and due diligence before acting on any security. Some of the opinions expressed in this article are the author's own and may not necessarily represent those of Moneylife.)
New Delhi: Merchant bankers cannot refer clients for alternative investments beyond the securities market, such as corporate deposits and real estate, the Securities and Exchange Board of India (SEBI) has said while rejecting a plea by Barclays Securities, reports PTI.
Merchant bankers act as intermediaries between entities seeking to raise capital through sale of securities and the purchasers of these securities.
Referring clients to entities providing alternative investment services beyond the securities market do not fall under the permitted businesses for merchant bankers, SEBI has said.
Barclays Securities India Pvt Ltd (BSIPL), a wholly-owned subsidiary of UK-based banking major Barclays Bank Plc, is registered with SEBI as a portfolio manager, stock broker, merchant banker and depository participant.
The company had approached SEBI in June 2010 seeking an 'informal guidance' on whether it can engage in the business of referring clients to "Alternative Service Providers (ASPs) for non-security related products and/or services."
Barclays said such ASPs could include investment banking firms arranging investment in corporate deposits and inter-corporate deposits, property consultants for purchase and sale of real estate, companies accepting corporate deposits and firms assisting in placement of such deposits.
Besides, Barclays also listed out banks, NBFCs, home finance companies or any other lenders, including but not limited to the Barclays group, who can provide credit products.
Barclays said that such referral agreements would have no financial liabilities and would involve payment of referral fees to it based on volume of business.
BSIPL sought a 'no action letter' from SEBI, stating that its proposed activities would not attract any sanction from the regulator for it being a stock broker or merchant banker.
In its guidance, SEBI said that a stock broker may engage in referral business which does not involve any personal financial liability, subject to some conditions.
However, BSIPL was also registered as a merchant banker and the regulations do not allow merchant bankers to carry on any business other than the securities market.
SEBI said that an amendment to its merchant banking regulations permitted merchant bankers to engage in activities such as project advisory services, rupee loan syndication and international financial advisory services, but these did not include the activities requested by Barclays.
"Since referral activities for non-security related products and/or services does not fall within the purview of the activities permitted by regulation..., you are not permitted to undertake such business," SEBI has informed BSIPL.