Deepak Malik of Edelweiss said that Unichem's domestic portfolio growth is slow. The fact that Torrent has rationalised the portfolio, workforce and generated synergies is evident from improvement of Unichem's margin to 30 per cent from sub 20 per cent, he explained.
Q3 numbers, however, indicate that growth in the acquired portfolio will remain a challenge. The acquisition comes with significant overlap and 20 per cent of the portfolio includes Losartan, an anti-hypertension
molecule that is not growing rapidly as the market has shifted to another molecule Telmisartan.
Losartan, an anti-hypertension drug, in which Unichem enjoyed 37-38 per cent market share, has hardly seen any growth in the past five years.
The company spokesperson, however, highlighted that Losar (a flagship brand for Losartan) grew 13 per cent in Q3. Over the past one year (as on December MAT over previous year), Losar brand has grown only 4.5 per cent. Torrent thinks that Losartan is a good fit as it plugs a gap in its anti-hypertensive portfolio, as it is the preferred drug in the diuretic hypertensive market, which is 25 per cent of the overall hypertension market.
The company said that the top five brands (which contribute around 50 per cent of the total acquired portfolio) have grown by 21 per cent in Q3 compared to 14 per cent growth in the cardiovascular market. Torrent thus expects the growth in the acquired portfolio to be better than market from here on. "Trend is quite encouraging for other key brands like Ampoxin, Telsar, Vizylac & Unienzyme," the spokesperson added.