Annexure- E
INTRODUCTION
India is the largest provider of generic drugs globally. Indian pharmaceutical sector
supplies over 50% of global demand for various vaccines, 40% of generic demand in the US
and 25% of all medicine in the UK. Globally, India ranks 3rd in terms of pharmaceutical
production by volume and 14th by value. The domestic pharmaceutical industry includes a
network of 3,000 drug companies and ~10,500 manufacturing units. India enjoys an important
position in the global pharmaceuticals sector. The country also has a large pool of
scientists and engineers with a potential to steer the industry ahead to greater heights.
Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired
Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
GLOBAL OVERVIEW:
The global economy faced headwinds in FY 2022-23, as inflation rose due to energy price
hikes and supply chain disruptions caused by the Russia-Ukraine war and COVID-19 related
lockdowns in China. Key developed economies slowed down and central banks struggled to
contain inflation despite raising interest rates. As a result, the global economy
contracted. However, there were signs of recovery by the end of the year, with India
leading the way by growing at a brisk pace and inflation easing to more comfortable
levels.
As we move into FY 2023-24, many countries will likely continue to implement tight
monetary policies to combat inflation while avoiding recession. However, in the post
pandemic world, we do not expect governments to deprioritize their pharmaceutical budget
allocations. We believe that medical spending in high-income countries such as those in
Western Europe, North America and Japan will remain high, as these countries continue to
see high per capita usage of prescription drugs. We expect per capita usage of
prescription drugs to grow in low-income countries and that the pharmaceutical market will
continue to grow at a steady pace, as new products offset the loss of revenue from
expiring patents.
Global pharmaceutical industry structure and key developments
Global medicine market size and growth 2013-2027
COMPANY PERSPECTIVE
Vista Pharmaceuticals offers over the counter & prescription generic drug products
consisting of tablets, capsules and liquids covering various therapeutic categories. Vista
Pharmaceuticals was founded in 1992 to Formulate, Register, Produce, Market and Distribute
High Quality Pharmaceutical Products, initially focusing on the United States Market with
a Vision of expanding Globally.
Vista Pharmaceuticals is the first Indian Company to obtain USFDA Approvals to produce
OTC as well as Prescription Drugs to US Market in 1994. Vista Pharmaceuticals is the first
Indian Company to export OTC as well as Prescription Drugs to US in 1996.
Vista Pharmaceuticals Indian Facility got USFDA Approval in June 2010 to produce ANDA
products to US Market.
Vista has its USFDA Approved Manufacturing Facility in India and its Marketing and
Distribution Center in USA.
We have established an extensive Marketing and Distribution Network in the United
States. Our state-of-the-art Facility in India is built according to cGMP and US-FDA
standards. It has been operating since 1994 and the Facility built with state-of the art
Research & Development (R&D), Quality Assurance/Quality Control (QA/QC) and
Production departments.
OBJECTIVES:
• Develop ANDAs (Generic version of Off-Patented Branded Drugs) to US market.
• Develop Generic Drug Products to other Global Markets.
• Contract Manufacture Pharmaceutical Drug Products to other Companies.
ACHIEVEMENTS:
• USFDA Approved Generic Bactrim (Sulfamethoxazole + Trimethoprim - SMZ) for US
Market in October 2005.
• SMZ Product(Generic Bactrim) is First Manufactured in US in 2006.
• SMZ Product (Generic Bactrim) is First launched in US in May 2006.
• USFDA approved the Site Transfer of SMZ Product Manufacturing to India in June
2010.
• SMZ Product from India is launched in US in November 2010.
VISTA PHARMACEUTICALS, INIDA (VISTA INDIA) FOCUS IS:
• US Generic Market has better margins and sales volumes compared to other
countries.
• Almost 85% of the prescription drug market is of Generic Drugs in US.
The company operations are going on as per USFDA cGMP norms. The validations and
stability testing studies are going on as per schedules.
PRODUCTS TO BE INTRODUCED TO US MARKET:
The management of the Company is planning to introduce the following resolution in the
US market.
Cardiac, Respiratory, and CNS drugs.
ROAD AHEAD
Medicine spending in India is projected to grow 9-12% over the next five years, leading
India to become one of the top 10 countries in terms of medicine spending. Going forward,
better growth in domestic sales would also depend on the ability of companies to align
their product portfolio towards chronic therapies for diseases such as such as
cardiovascular, anti-diabetes, anti-depressants and anti-cancers, which are on the rise.
The Indian Government has taken many steps to reduce costs and bring down healthcare
expenses. Speedy introduction of generic drugs into the market has remained in focus and
is expected to benefit the Indian pharmaceutical companies. In addition, the thrust on
rural health programmes, lifesaving drugs and preventive vaccines also augurs well for the
pharmaceutical companies.
Company is trying its best to move ahead in planned manner to achieve the higher
growth.
FINANCIAL PERFORMANCE:
Revenues
Company has recorded the revenue of Rs. 100.37 Lakhs during 2022-23 as compared to Rs.
39.46 Lakhs in 2021-22.
Other Incomes
The Other incomes for 2022-23 of Rs. 39.94 Lakhs has increased, compared to Rs. 16.57
Lakhs in 2021-22.
Expenditure
The expenses for 2022-23 of Rs. 727.94 Lakhs has reduced, compared to Rs. 317.78 Lakhs
in 2021-22.
Loss Before Tax
There is Loss Before Tax for 2022-23 of Rs. 587.63 Lakhs compared to Loss Before Tax of
Rs. 261.76 Lakhs in 2021-22.
Loss after Tax
The Loss After Tax for 2022-23 of Rs. 566.20 Lakhs as against Profit After Tax of Rs.
88.86 Lakhs in 2021-22.
Earnings Per Share
The EPS for 2022-23 has increased to Rs. (1.54) as compared to Rs. (0.24) in Previous
Year 2021-22.
RISK MANAGEMENT
Risks are inherent to our business as our operating environment is complex, highly
regulated, and dynamic. To attain our strategic growth objectives, protect the interests
of all our stakeholders and meeting legal requirements we have an established process of
identifying, analyzing, and responding appropriately to all business risks. We have a
well-embedded Risk Management Framework to ensure that we are well-placed to manage any
adverse effect posed by financial, operational, strategic or regulatory related risks.
Our framework adopts appropriate risk mitigation measures for identified risks across
functions. The process ensures that new risks, which might arise, or the impact of
existing risks which might have increased, are identified and a strategy is put in place
for mitigating such risks. The major risks identified by the management are regulatory,
competition, supply chain disruption, cyber and data security.
INTERNAL CONTROLS AND ADEQUACY
Your Company has a robust and reliable system of internal controls commensurate with
the nature of the business, and the scale and complexity of operations. The Company has
adopted policies and procedures covering all financial, operating and compliance
functions. These controls have been designed to provide a reasonable assurance over:
1. Effectiveness and efficiency of operations
2. Safeguarding of assets from unauthorized use or losses
3. Compliance with applicable laws and regulations
4. Prevention and detection of frauds and errors
5. Accuracy and completeness of the accounting records
6. Timely preparation of reliable financial information
The current system of Internal Financial Controls (IFC) is aligned with the requirement
of the Companies Act 2013, The Internal Audit (IA) function of the Company functionally
reports to the Chairperson of the Audit Committee, thereby maintaining its objectivity.
FORWARD-LOOKING STATEMENTS
Your directors are focusing to strengths its Market through expansion of its activities
and will make the necessary investment when attractive opportunities arise.
OPPORTUNITIES & THREATS:
The pace at which the pharmaceutical sector in India is growing has increased the
Opportunities for the company which can lead to healthy growth of the Company. The
pharmaceutical sector is also exposed to various kinds of risks related to change in
government policies, pricing of products, intense competition due to growth etc. The
Company is well equipped to tackle the risks related to the business of the Company.
OUTLOOK:
Your company has been following the philosophy of providing the highest quality
products and services at the lowest possible prices. Your Companys philosophy to provide
high class quality products i.e., full value for money, to consumers would greatly benefit
in the long run. Your company will continue to follow this philosophy in the new
operations that it is likely to undertake.
HUMAN RESOURCES:
Vista Pharmaceuticals Limited believes in creating an environment, wherein human
resources derive a sense of purpose, passion and personal growth at work, leading to
organizational performance. Towards realizing this, the company relies on the four
pillars, namely, performance management, talent engagement, Capability development and
maintaining cordial industrial relations. It also believes in review of its HR processes
and systems on an ongoing basis to optimize costs, time and labour.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing the Companys
objective, projections, estimates, expectations may be forward-looking statements. Actual
results may differ materially from those expressed or implied due to various risks and
uncertainties. Important factors that could make a difference to the Companys operations
include global and Indian demand-supply conditions, finished goods prices, changes in
government regulations and policies, tax regimes, economic conditions within India and the
countries within which the Company conducts business and other such factors. The Company
does not undertake to update these statements.
For and on behalf of the Board of VISTA PHARMACEUTICALS LIMITED
| Place: Hyderabad |
Sd/- |
Sd/- |
| Date: 12.08.2023 |
DHANANJAYA ALLI |
PAVAN SATHVIK GILAKA |
|
Whole time Director |
Whole time Director |
|
DIN: 00610909 |
DIN: 09733182 |
+91-9892691696
