SMS PHARMACEUTICALS Share price

We were originally incorporated as S.M.S. Pharmaceuticals Pvt. Ltd. on December 14 1987 for the manufacture of Bulk Drugs. Mr. K G Suggula was our original promoter of our company. We had accumulated losses till 1990 when our current promoter?s viz. Mr. Ramesh Babu Potluri and Mr. T V V S N Murthy acquired the Company. Thereason behind acquiring a loss making company was to avoid all the regulatory formalities to be fulfilled in case of starting up a new unit.On November 2 1994 our company was converted to Public Limited Company from private limited and the name was changed to S.M.S. Pharmaceuticals Limited. Subsequently on April 12 2004 for operational purpose our name was changed to SMS Pharmaceuticals Limited from S.M.S. Pharmaceuticals Limited.We started with 20 employees as a single unit and single product Company in 1990 and have now grown into a multi-location multi-product Company with 4 units and 310 employees on rolls and four Units. In the year 1991 we started the manufacturing of bulk drug business with the product called Ranitidine HCL at Unit I situated at IDA Khazipally Jinnaram Mandal Medak District Andhra Pradesh with a production capacity of 3 metric tonnes per annum and the process consisting of 7 major stages. As of today the installed manufacturing capacity has expanded to 1440 metric tonnes per annum and the technology has also been upgraded to a 4-stage process which has enabled us to become a competitive seller in the market.We acquired a second Unit at Bachipally Miyapur Rangareddy District Andhra Pradesh in the year 2000 as part of the expansion programme and started producing Sumatriptan Succinate for which a non-infringing root of synthesis was developed through in-house R&D. Currently Unit II is used to manufacture high value & Low volume APIs like Sumatriptan Succinate Ramipril and Quinapril.We started a Nutraceuticals and health care division (Unit III) as a part of diversification in the year 2003 by launching an OTC product called Fenudiet and Hearty Salt in consumer market. ?Fenudiet? is a product for diabetics and we have made an application with the Trade Mark Authority to get our brand "Fenudiet" registered.. Subsequently we started manufacturing many other products like Alvit Set Free De- Mass and others. However apart from Fenudiet & Hearty Salt manufacturing of products like Alvit Set Free De- Mass and others have beendiscontinued because of high overheads cost on distribution and low margins.We have also started UNIT IV at Gagillapur (Village) Quthbullapur (Mandal Ranga Reddy (Dist). in the year 2004 for scaling up of the APIs. This unit is to be used as a pilot plant. We have also expanded our R&D activities to have 4 PhD?s supported by more than 30 senior chemists. In the year 2004 we started an exclusive basic research facility at Sanath Nagar Hyderabad. The R&D center mainly focuses onanti-cancer molecules anti-migraine molecules anti-bacterial anti-ulcer important intermediates and natural plant extracts. We are also having 2 more PhD?s which are looking after our production facilities at Unit I and & Unit II.We have filed 6 non-infringing process patents and 1 product patent under PCT and 10 process patent under Indian Patent Laws as detailed under the head ?Intellectual Property? in this Red Herring Prospectus. We have also filed DMFs/CoSs in US Europe and Canada for 4 products as listed under the head ?Intellectual Property? mentionedin this Red Herring Prospectus. We also started producing ACE inhibitors Ramipril Quinapril and anti- cancer drug Gemcitibine.We had received in principle approvals from BSE vide letter dated December 21 2004 and NSE vide letters dated January 11 2005 May 31 2005 and July 12 2005 and had also received the observation letter from SEBI dated May 11 2005 for launch of an IPO for financing the same project envisaged in this RHP. However we did not proceedwith the IPO. By the time we received the observation letter from SEBI our plans underwent some change since we perceived better opportunity in implementing a bigger project with larger capacities and for the manufacture of few more products. Hence we decided not to go ahead with the IPO.Our MilestonesHistory and Major Events:Year Events1987 .. Incorporated by Mr. K G Suggula1988 .. Issued 49960 equity shares at the price of Rs. 10 per share1989 .. Issued 50000 equity shares at the price of Rs. 10 per share1990 .. Acquired by present promoters Mr. Ramesh Babu Potluri & Mr. T V V S N Murthy Issued 50000 equity shares at the price of Rs. 10 per share1991 .. Commercial production of Ranitidine HCL with 3 MTPA at Unit I1992 .. Ranitidine capacity increased to 180 MTPA· Issues 150000 equity shares at the price of Rs. 10 per share1994 .. Issued Bonus Shares in the ratio of 8:3 i.e.800000 equity shares of Rs. 10/- each Issues 150000 equity shares at the price of Rs. 10 per share and 350000 equity shares at the price of Rs. 60 per share -- Setup of in-house R&D laboratory in Unit I1995 .. Doubled Ranitidine capacity to 360 MTPA· Issued 450000 equity shares at the price of Rs. 120 per share1997 .. Increased Ranitidine capacity to 720 MTPA1998 .. Awarded the prestigious "Pandit Jawaharlal Nehru Silver Rolling Trophy" for its excellence as "Best Industrial Productivity effort in the State1999 .. Additional APIs Naproxen Ciprofloxacin at Unit I2000 .. Ranitidine capacity including intermediates increased to 1440 MTPA· Acquired plant of high value APIs at Bachupally (Unit II)2001 .. Commercial production of Sumatriptan Succinate at Unit II .. ISO 9001:2000 certification obtained for Unit I .. Recognized as export house by Ministry of Commerce2002 .. Setup of in-house R&D laboratory in Unit II .. US DMF filed for Sumatriptan Succinate2003 .. ISO 9001:2000 certification obtained for Unit II .. Supply Agreement with Ranbaxy under Para IV of ANDA for Sumatriptan Succinate .. 4 process patents and 1 product patent filed under the Patent Co-operation Treaty .. 1 Process Patent filed for Sumatriptan Succinate under European Patents. .. Set up of Nutraceutical plants in Unit III2004 .. USFDA approval obtained for Unit II .. Commenced commercial production of Ramipril and Quinapril at Unit II .. Established exclusive basic research facility at Sanath Nagar Hyderabad .. US DMF for Ranitidine HCL and CoS filed for Sumatriptan Succinate and Ramipril .. Agreement entered into with IICT Hyderabad for development of process know-how for Diltiazem HCL and Taxol C-13 .. Agreement entered into with IIT Guwahati for development of process know-how for metal acetylacetonates .. Entered into a Memorandum of Understanding with Sochinaz SA for exclusive development and supply of Trandolapril for global marketing by Sochinaz SA. .. Setup of pilot plant facility for APIs at Gagilapur Hyderabad (Unit IV) .. 1 process patents filed under the Patent Co-operation Treaty and 2 process patents filed with Indian Patents Office .. Issued Bonus Shares in the ratio of 1:1 i.e.4100000 equity shares of Rs. 5/- each2005 .. 8 process patents filed with Indian Patents Office .. Commenced commercial production of Almotriptan in Unit II .. US DMF filed for Ranitidine USP Almotriptan and Ramipril. .. Commencement of development of Trandolapril product under Contact Research for a European Company Sochinaz S/A.2006 .. Published European Patent for Sumatriptan Succinate .. Issued 2923000 equity shares to the shareholders of Sreenivasa Pharma Private Limited in exchange of shares of Sreenivasa Pharma Pvt. Limited. .. Completion of contract research assignment of Trandolapril exclusively executed for Sochinaz SA .. CoS for Ranitidine HCL obtained from EDQM.2007 .. Issued 400000 equity shares at the price of Rs. 350 per share to Gulf Pharmaceutical Industries a public shareholding company having its registered office at UAE