Should You Invest in Marksans Pharma NSE? An In-Depth Analysis
The decision to invest in Shares of Marksans Pharma, NSE, requires a thorough understanding of the pharmaceutical company's operations, market position, and future growth prospects. Founded by Mark Saldhana, the son of Gracias Saldhana, the company has its roots in the pharmaceutical industry, with its separation from Glenmark Pharmaceuticals in 2003.
Company Background and Research Highlights
Marksans Pharma is a subsidiary of Glenmark Laboratories Ltd., which later merged with TASC Pharma in 2005, and was renamed Marksans Pharma Ltd. The company is headquartered in Mumbai, engaging in extensive research, manufacturing, and marketing of generic drugs. Marksans specializes in the production of both over-the-counter (OTC) and prescription drugs, with applications spanning various fields such as oncology, gastroenterology, antidiabetics, antibiotics, cardiovascular diseases, pain management, and gynaecology.
Subsidiaries and International Presence
Marksans Pharma has four main subsidiaries: Nova, Bells Healthcare, Relonchem, and Timp Clap Labs. This strategic acquisition has helped the company to grow and avoid direct competition in niche segments. Currently, the company markets its products in 25 countries, with the UK and the US being the largest markets. Marksans operates from three manufacturing plants in India, the UK, and the USA, and houses four Research and Development (RD) centers with 50 experienced scientists.
Business Model and Product Portfolio
The company's product portfolio includes soft gelatin capsules and tablets in niche segments, including plain, enteric-coated, and film-coated varieties. Marksans also produces oral liquids and ointments. The revenue breakdown is significant, with 55% coming from OTC and 45% from Rx. The top revenue contributors include pain management (30.83%), antidiabetics (18.41%), cardiovascular health (14.45%), and cough and cold (13.12%).
Forward Integration and Market Leadership
Marksans Pharma operates on a forward integration business model, deriving more than 95% of its revenue from the developed markets, particularly the USA, UK, Australia, and New Zealand, contributing to over 96% of its total revenues. This strategic focus on regulated markets provides a sustainable business model for the company.
Competitive Strength and Future Prospects
Marksans Pharma stands out through its expertise in soft gel capsules, which is a niche area within the pharmaceutical industry. The company's strong research and development (RD) center, with 50 experienced scientists, has helped it to get accreditation certifications in regulated markets. Additionally, the acquisition of four best-in-class subsidiaries has enabled Marksans to expand its product range and address diverse market needs efficiently.
Looking ahead, the UK and EU pharmaceutical markets are estimated to grow significantly, offering promising opportunities for Marksans Pharma. The company's forward integration model, combined with its presence in regulated markets, positions it well to capitalize on emerging trends and expand its market share. Investors should consider the company's robust revenue streams, strategic acquisitions, and market leadership in the decision to invest in Marksans Pharma NSE.