Mcure Pharmaceuticals Hot-Take IPO Release

Introduction

• Presenter: C R Ran
• Type: One-take video with potential fumbles (check pinned comment for clarifications)
• Topic: IPO summary of Mcure Pharmaceuticals Limited
• Target Audience: People unsure of how to analyze IPOs
• Objective: Summarize Mcure's 546-page RHP in 10-15 minutes

About Mcure Pharmaceuticals

• Industry: Pharmaceuticals
• Operations: Developing, manufacturing, globally marketing pharmaceutical products
• Therapeutic Areas: Gynecology, cardiovascular, vitamins, minerals, nutrients, HIV, antivirals, blood-related oncology, antineoplastics
• Market Presence: Strong in India, Europe, Canada; targets 70+ countries

Industry Analysis

• Global Growth: Expected growth of 5 - 5.5% (2023-2028), valued at approx 157-161 trillion INR
• Indian Growth: Expected growth of 8 - 9% CAGR, valued at approx 2.9 - 3 trillion INR
• Patents: Products going off-patent in 2024-2028 presents opportunities and competition
• Revenue Split: ~93% from generic and branded products, 7% from APIs

Product Categories

• Branded Patented Products: Protected by patents (usually around 10 years)
• Generic Products: Patents expired, available for all players

Specifics from RHP

• Patents: About 190-220 billion USD worth biopharmaceuticals to expire (2024-2028)
• Revenue from Generics & Branded Products: 93%
• **Key APIs: **Destone, Fic Carola

R&D & Patent Focus

• Facilities: 5 R&D in India
• Patents: 220 granted, 30 pending applications
• DMF Submissions: 102, pending with USFDA
• Expenses: Focus on R&D, but the expenditure % of revenue is decreasing

Financials

• **Revenue: **Increasing trend (58,000M to 66,500M)
• Exports vs India: 48/52% split
• Profit: Decreasing trend (7,000M to 5,200M)
• Margins: Declining PAT margin (11.87% to 7.86%)
• ROE, ROCE, & EBITDA: All declining

Valuation & Comparison

• Industry PE: 40.41
• Company PE: 36.6
• Peer Comparison: Highlights shown in table (Revenue, EBITDA, PAT Margin, EPS, ROCE, NAV, Return on Net Worth)

IPO Details

• Objects of The Issue: Repayment or prepayment of certain borrowings; General corporate purposes
• Fresh Issue vs OFS: 800 crore (Fresh issue), 1152 crore (OFS)
• Price Band: 960-1020
• IPO Date: Opened today, closes in 2 days
• Subscription Status: Nearly 1x subscription; Retail & NII fully subscribed, Employee quota also oversubscribed

Final Thoughts

• Next Steps: Check the pinned comment for any clarifications
• Call-to-Action: Comment if you are 'in' or 'out'

Engagement: Like, comment, follow for more updates!