Mcure Pharmaceuticals Limited IPO analysis

Company Overview

Mcure Pharmaceuticals is an Indian pharmaceutical company involved in:

• Developing
• Manufacturing
• Globally marketing a broad range of pharmaceutical products across several therapeutic areas

Their portfolio includes orals, injectables, biotherapeutics and their target market spans across 70 countries with a strong presence in India, Europe, and Canada.

Mcure has a diverse therapeutic focus that includes gynecology, cardio-vascular, vitamins, minerals, nutrients, HIV, oncology, and more. Furthermore, the company prides itself as the market leader in the gynecology therapeutic area in the Indian pharmacy market with a 13.53% market share.

Industry Analysis

Globally, the pharmaceutical sector is projected to grow at 5 to 5.5% between 2023 to 2028, getting a valuation of roughly INR 157 trillion to INR 161 trillion. The Indian market is expected to grow at 8 to 9% and achieve a valuation of approximately INR 2.9 trillion to 3 trillion.

One noteworthy aspect of the industry is the expiration of patents on biopharmaceuticals. Mcure has a strong emphasis on branded generic products which forms about 93% of their revenue.

Research and Development

Mcure Pharmaceuticals has five R&D facilities in India and has been granted with 220 patents while having 30 pending patent applications in several countries. Their R&D expenditure as a percentage of their revenue has, however, been declining over the years.

Key Risks

Much like other pharmaceutical companies, Mcure Pharmaceuticals faces the risk of heavy industry regulation and failure to obtain or maintain certain approvals and licenses.

Financials and Valuation

Their revenue from operations has been on an upward trend from 2019 to 2021 and the split between export sales and sales in India is roughly 50/50. However, the profit after tax (PAT) margin has continually decreased from 11.87% in 2019 to 7.86% in 2021.

IPO Details

The IPO consists of a fresh issue and an offer for sale with the price band ranging from INR 960 to INR 1038. The objectives of the issue are the repayment or prepayment of certain borrowings and general corporate purposes.

The final word on whether to invest in Mcure Pharmaceuticals Limited's IPO will depend on an individual's specific investing strategy and risk profile.

Key Takeaways

• Mcure Pharmaceuticals is a significant player in the Indian pharmaceutical industry with a broad range of pharmaceutical products across several therapeutic areas.
• The Indian pharmaceutical market's growth is expected to outpace global growth rate significantly, offering substantial opportunities.
• Mcure's reliance on generic products can provide opportunities but also expose the company to intense competition.