Lincoln Pharmaceuticals Limited manufactures, markets, and exports pharmaceutical products in India and internationally. The company’s product categories include antimalarial, antibiotics, anti-bacterial, analgesics, anti-inflammatory, anti-pyretic, anti-hypertensive, anti-fungal, antacids, anti-ulcers, anthelmintic, anti-cold, anti-allergic, anti-asthmatics, anti-emetics, gastrointestinal-agents, anti-diarrhoeals, anti-spasmodic, and pro-biotic, as well as cardiac and diuretic products. It also provides creams, ointments, anti-infective, vitamins, minerals, and iron-preparations.
In addition, the company trades finished goods, chemicals products, and bulk drugs. Lincoln Pharmaceuticals Limited was founded in 1979 and is based in Ahmedabad, India.
COMPANY’S BRAND DIVISIONS
1. Lincoln : It is the main division of Lincoln Pharmaceuticals Limited having flagship brand of Nam Cold with major focus in Anti Cold, Anti Biotic, Otolaryngology and Pain Management with a very diversified portfolio.
2. Lord’s : Lords Division mainly caters in Anti-Malarial segment with pioneer brand ARH.
3. Teresa: This division is totally devoted for gynac products with a complete portfolio of gynac range. Company has more than 30 brands in this segment.
PATENTS
PRODUCTS
Company’s products comprise alkylisers, analgesics, anti-asthmatics, anti-bacterial, anthelminthic, anti-infective, anti-protozoal, anti-amoebic, anti psychotics, anti-tubercular’s, antiulcerants, anti-allergics, antidiabetic, antidiarrheal, antifungal, antimalarial, antiemetic, anti-nauseate, antitussives/expectorants, and mucolytics. The company’s product line also includes bone disorders, cardiovascular drugs, electrolytes, fertility agents, hemostats, iron preparations, laxatives, sedatives and tranquilizers, tonics and vitamins, and topical steroids. Lincoln Pharmaceuticals Limited offers its products in various dosage forms comprising tablets, capsules, injectable, syrups, and ointments. It also exports its products to Africa, south East Asia, and Latin American countries.
NEW LAUNCHED PRODUCTS
Tinnex- a promising drug for Cochlear Synaptic Tinnitus- Launched by Lincoln Pharma under licensing arrangement & technical collaboration with Phafag (Switzerland).
Pa 12 Proglet is a 1000 mg Programmed Released Paracetamol. Pa 12 Proglets are programmed for 12 hours of non-stop control of pain and fever. Proglet Technology of Pa 12 Proglets ensures that the levels of the Paracetamol in the blood plasma are maintained for a longer period to give better efficacy and non-stop therapeutic action up to 12 Hours. Thus also giving an advantage in the dosage convenience, 2 Proglets per day (24 Hours).
Lincoln Pharmaceuticals (LPL) has launched anti malarial drug ‘ARH 1’, developed using innovative technology known as Dose Optimization Technology under the Novel Drug Delivery System (NDDS). While mainstay treatment for malaria is complex and difficult to administer, ARH 1 is simpler and much more yielding making it easier for malarial patients to tolerate and recuperate from this disease.
R & D CENTER
Right from inception, Lincoln puts a major thrust on developing innovative and technology based products aiming at optimizing the use of drugs for better therapeutic purposes. The R & D center is equipped with sophisticated instruments and equipment’s for in-house physical, chemical and microbiological analysis of all products. A dedicated group of technocrats mans the R&D center. New product development, Quality improvement in existing products, process development and validation are undertaken here. The ceaseless efforts to develop products by using Optimized Drug Delivery – ensures greater potency & effectiveness, lesser side-effect & toxicity levels, better stability, low cost hence greater accessibility , ease of administration and best patient compliance. Increased patient’s awareness & cutthroat competition amongst the manufacturers induces the company to develop & introduce excellence and novelty in its products.
Lincoln’s R&D is keeping pace with the changing pharmaceutical technology. As a result of focused research, Lincoln has filed patent for NAMSAFE – a hepato-protective combination of Nimesulide with Racemethionine and a product patent for the protective combination of nimsulide with racemethionine and several more patent applications are in the pipeline.In the true sense Lincoln’s R&D is committed to developing technology-based products with competitive prices for the patients
For past financial performance visit http://www.screener.in/company/?q=531633
FUNDAMENTAL ANALYSIS
Industry Structure and Developments:
In the year 2013-14, the Indian Economy and GDP growth was marginally slow but, Pharma Industry has been growing inspite of slowdown. As Indian population getting aware towards health and about different human diseases which are showing up, new molecules are being evolved. Hence, the future of pharma industry is bright anyway.
As the Company is primarily engaged in the business of manufacturing, marketing and Exports of Pharmaceutical products, the management of the Company is hopeful for growth of top line and bottom line.
Though, there are many pharmaceuticals companies in the country manufacturing high quality medicines at affordable prices but inspite of the stiff competition in the country, this company introduces high quality medicines at affordable price for Indian public at large. Since the company is trying to increase its market share by introducing high quality products and low price medicines, the management is confident to succeed in the most competitive markets.
Opportunities:
As Pharma Sector is increasing in India, the Company is really having a good opportunity for growth. As the people in India and other parts of the world are getting more aware towards the health, Lincoln Pharma is fully geared to meet the demand by introducing new molecules and also by opening new opportunities for the company by entering potential markets. Lincoln’s parenteral unit has been started last year and lot of countries inspections / approvals is lined up with which the company would be able to penetrate different markets to have a good share in those markets.
Outlook:
Lincoln has increased its market share and also introduced lot of new products in the existing market in India. This year, Lincoln is planning to introduce more new molecules and also different product basket to cater in India. In Exports , the company is steadily growing and in coming years, Lincoln is planning to enter in most of the West African Countries where it is targeting to increase its presence and potential growth for the company. The Company is also concentrating on the job work of various national and multinational companies and adding new products to its existing product range. The company is planning to start another Cephalosporin unit in the coming financial year which would help the company in integrating with all the segment of pharma products.
Risk/Concerns and remedial measures:
The Company is functioning in the competitive markets where there are number of small scale and medium scale manufacturers who are in the similar kind of products in the market and therefore there is a continuous pressures on the margin on the Company. Secondly, in the same way, the investments in the new geographical area, introduction of innovative products and new introductory pricing products would affect the performance of the company and its profitability. However, the company has taken all the measures to minimize the risk by way of introducing R&D development center and continuously incorporating suggestions and guidance given by the experts, doctors and medical councils from time to time.
Internal Control Systems and their adequacy:
The Company maintains a system of well-established policies, guidelines, adequate internal controls, ensure efficiency of operations, compliance with internal policies, applicable laws and regulations. It also maintains an internal audit function conducted by independent Chartered Accountants firm for monitoring statutory and operational issues. The company is in the process of completing ERP system in the organization and developed a system for processing the documents. As a system and control, to make it more powerful across the organization, the internal audit , statutory audit as well as in house internal audit team are regularly checking the system audit and monitoring the statutory compliance and operational issue.
Considering the financials and future fundamental aspects given above , one may consider this stock “LINCOLN PHARMACEUTICALS LTD “ for the medium term at CMP 102 .The stock is listed in BSE only.
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