npat & valuation, page-68

GD- Fair enough mate, it's confusing with all the different "stories" going around. Investors are very much in the dark at the moment.

If we look back to September there were also reports from Reddys stating " We have assumed a base market share of c35% with 50% price erosion on fondaparinux (after AG entry)"

Once everything is optimized, that 20-25% figure does seem highly unlikely though. However, It wouldn’t surprise me if Reddy's post initial figures short of what everyone is expecting, and perhaps more along the lines of 20-25% like your suggesting. We must accept that the discount offered might be small at first, and must also remember that they were initially only targeting the retail pharmacies, which account to 40% of the market.

I’m confident Reddys will eventually acquire a share similar to that of the FTC report.... My main concern is over the high cost of API’s, and the time it takes to produce. It sounds like production is short of full capacity, with the process yet to be refined - hence the “bottle neck” in production.

I guess this is where your economies of scale really come into it, and perhaps what we should be more worried about?....