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Phibro Animal Health & Zydus Cadila Plan to Expand in India
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Phibro Animal Health Corporation (PAHC - Free Report) recently announced plans to enter into a long-term agreement with global pharmaceutical company Zydus Cadila to expand in the rapidly growing poultry market in India. If the agreement comes to effect, Zydus Cadila will be licensing and constructing Phibro’s advance poultry vaccines technologies to a manufacturing unit in India.
The companies’ management seems to be upbeat about the plan as development of a manufacturing facility will result in the availability of highly innovative vaccines in India, eliminating the extra costs needed for imports. Along with increased gains, this plan is expected to strengthen the partnership between the companies which has been going strong for over 20 years.
The agreement will also be strategically aligned with Phibro’s business expansion plans for its Animal Health segment. Notably, this part of Phirbo’s business has been a major contributor to net sales (28.8% of total revenue in fiscal 2016).
In fact, within this space, the poultry processing and equipment market is growing in leaps and bounds. Going by Markets and Markets data, this market is projected to reach a worth of $3.83 billion by 2020, at a CAGR of 4.7% from 2015 to 2020.
Being one of the most densely populated nations, India should be able to capture a significant portion of this market. As per a report by the Market Research Reports Search Engine, the Indian Animal Health Care market is expected to see a healthy CAGR of 8.0% between 2016 and 2024, thereby reaching a value of whopping $1,179.4 million by the end of 2024. Also, according to global market intelligence agency Mintel, India’s processed meat and poultry market reached a value of INR11 billion in 2016. Being the second-fastest growing processed meat and poultry market, it has substantial potential.
In the view of the bullish trends in this niche market, we believe the collaboration with Zydus Cadila will boost Phibro’s international growth and revenue expansion plans.
Notably, Phibro has been trading above the broader Medical Instruments market over the last three months, gaining 28.3% as compared to the industry’s 10.3%. It has also outperformed the 3.5% gain of the S&P 500 market over the same time frame.
Zacks Rank & Other Key Picks
Phibro currently carries a Zacks Rank #2 (Buy). A few other top-ranked medical stocks are Inogen, Inc. (INGN - Free Report) , Varian Medical Systems, Inc. and Abbott Laboratories (ABT - Free Report) . Notably, Inogen sports a Zacks Rank #1 (Strong Buy), while Varian Medical and Abbott Laboratories carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock has gained around 21.8% over the last three months.
Varian Medical has a long-term expected earnings growth rate of 8%. The stock has gained around 13.6% over the last three months.
Abbott Laboratories has an expected long-term adjusted earnings growth of 10.84%. The stock has added roughly 9.4% over the last three months.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Phibro Animal Health & Zydus Cadila Plan to Expand in India
Phibro Animal Health Corporation (PAHC - Free Report) recently announced plans to enter into a long-term agreement with global pharmaceutical company Zydus Cadila to expand in the rapidly growing poultry market in India. If the agreement comes to effect, Zydus Cadila will be licensing and constructing Phibro’s advance poultry vaccines technologies to a manufacturing unit in India.
The companies’ management seems to be upbeat about the plan as development of a manufacturing facility will result in the availability of highly innovative vaccines in India, eliminating the extra costs needed for imports. Along with increased gains, this plan is expected to strengthen the partnership between the companies which has been going strong for over 20 years.
The agreement will also be strategically aligned with Phibro’s business expansion plans for its Animal Health segment. Notably, this part of Phirbo’s business has been a major contributor to net sales (28.8% of total revenue in fiscal 2016).
In fact, within this space, the poultry processing and equipment market is growing in leaps and bounds. Going by Markets and Markets data, this market is projected to reach a worth of $3.83 billion by 2020, at a CAGR of 4.7% from 2015 to 2020.
Being one of the most densely populated nations, India should be able to capture a significant portion of this market. As per a report by the Market Research Reports Search Engine, the Indian Animal Health Care market is expected to see a healthy CAGR of 8.0% between 2016 and 2024, thereby reaching a value of whopping $1,179.4 million by the end of 2024. Also, according to global market intelligence agency Mintel, India’s processed meat and poultry market reached a value of INR11 billion in 2016. Being the second-fastest growing processed meat and poultry market, it has substantial potential.
In the view of the bullish trends in this niche market, we believe the collaboration with Zydus Cadila will boost Phibro’s international growth and revenue expansion plans.
Notably, Phibro has been trading above the broader Medical Instruments market over the last three months, gaining 28.3% as compared to the industry’s 10.3%. It has also outperformed the 3.5% gain of the S&P 500 market over the same time frame.
Zacks Rank & Other Key Picks
Phibro currently carries a Zacks Rank #2 (Buy). A few other top-ranked medical stocks are Inogen, Inc. (INGN - Free Report) , Varian Medical Systems, Inc. and Abbott Laboratories (ABT - Free Report) . Notably, Inogen sports a Zacks Rank #1 (Strong Buy), while Varian Medical and Abbott Laboratories carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock has gained around 21.8% over the last three months.
Varian Medical has a long-term expected earnings growth rate of 8%. The stock has gained around 13.6% over the last three months.
Abbott Laboratories has an expected long-term adjusted earnings growth of 10.84%. The stock has added roughly 9.4% over the last three months.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It’s not the one you think.
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