Cheminor Drugs Ltd.
By 2 December 1999 | 02 Dec 1999
Commercial Paper Programme - Rs 70 million Rating : P1+
A ‘P1+’ (pronounced P one plus) rating has been assigned to the Rs. 70 Million Commercial Paper programme of Cheminor Drugs Limited (Cheminor).
The rating factors in the research driven operations which should help in emerging a low cost quality producer and introduce new products in its pharmaceutical business, diversified sales profile with strong international alliances and financial flexibility by virtue of being a Dr. Reddy''s group company. These strengths are offset by risks characteristic of bulk drugs business and in the generics business in the regulated market where Cheminor is a relatively new entrant, concentration risk in products and average stand-alone financial position.
Cheminor is an integrated bulk drugs manufacturer with a focus mainly on export markets in off patent products. The company has recently also set-up a formulations facility aimed at meeting the stringent quality requirements of regulated markets. In the first half ended September 1999, the company registered a net profit of Rs 139 million on sales of Rs 1120 million.