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.