Jagsonpal Pharma is in the business of manufacturing capsules and bulk drugs for the pharmaceutical industry – with a focus on supplying solutions for lifestyle-related diseases (diabetes, blood pressure etc.) The company hasn’t really grown its revenues over the last five years but generated consistent operating profits – reporting about 15cr in operating profits on 160cr of revenues in the last financial year. It operated with modest debt of 15cr (as at 31 st March, 2010). The company is exposed to risks of price controls on the end products, high competition in an undifferentiated product category, falling behind on innovative and more effective drugs, and stringent supplier demands.
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