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The <keyword id="47209" type="ORGANIZATION" weightage="80" keywordseo="Finance-Ministry">Finance Ministry</keyword> could have sidestepped a damaging multibillion-dollar tax row with foreign investors if it had acted on regular warning letters that officials had been sending since as long ago as September. 
 The warnings went unheeded, according to senior sources in the tax department and finance ministry, until the dispute with overseas investors over the imposition of the minimum alternate tax (MAT), which had not previously been applied to them, hammered the country's stock and bond markets and dented the business-friendly image of <keyword id="71" type="POSITION" weightage="80" keywordseo="Prime-Minister">Prime Minister</keyword> <keyword id="6354477" type="PERSON" weightage="80" keywordseo="Narendra-Modi">Narendra Modi</keyword>. 
 
Investor lobbies and tax lawyers estimate the bill for international funds and banks could be as high as $8 billion. 
 
The Modi government has been scrambling to contain the fallout since foreign funds started publicising their fight against MAT in mid-April, but it could have headed off the row if it had acted on the cautionary letters from its tax officials. 
 
One official's letter seen by Reuters, sent in November, asked for direction and warned that once tax notices were issued there could be "large ramifications". 
 
"They were sitting on a powder keg waiting for it to explode," said a senior official at the tax department. 
The finance ministry last week asked officials to stop issuing new MAT notices, but that is some eight months after the first letter and roughly six weeks after a storm sparked by the sending of almost 70 initial claims totalling 6 billion rupees ($95 million). 
 A spokeswoman for the <keyword id="121964" type="ORGANIZATION" weightage="80" keywordseo="Central-Board-of-Direct-Taxes">Central Board of Direct Taxes</keyword> said it was "totally incorrect to say that the Finance Ministry did not appear to realise the seriousness of the issue" and denied that the ministry's response was slow. 
 She said the issue was brought to the notice of the government as it prepared its annual budget for 2015-16, with Finance Minister <keyword id="42575" type="PERSON" weightage="80" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> announcing that MAT would no longer apply to foreign investors from April 2015. 
 
But Jaitley, whom a senior government source said was aware of the issue from January, left open the question of liabilities for past years, citing an outstanding court ruling. 
 
Last week, more than two months after the budget was announced, the government announced a temporary freeze on MAT notices pending a review. 
 
"COMPLETE MESS" 
 Foreign investors have long been critical of India's tax bureaucracy, citing aggressive claims that have led to damaging rows with companies including <keyword id="15492" type="CITY" weightage="80" keywordseo="Vodafone">Vodafone</keyword> and, more recently, Cairn India. 
 
Foreign funds are drawn to India in part because taxes on market investments can be lower than in Asian emerging market rivals. 
 
Before the MAT dispute, funds paid 15 per cent on short-term listed equity gains, 5 per cent on gains from bonds, and nothing on long-term gains. Taxes can be even lower if the investor is based in countries with tax exemption treaties with India. 
 The MAT claims so far have been small - <keyword id="170057" type="COMPANY" weightage="80" keywordseo="Aberdeen-Asset-Management">Aberdeen Asset Management</keyword> has, for example, received a claim of less than $50,000 - but investors complain the unpredictability unsettles them and the market. 
 The current controversy stems from a 2012 ruling over Mauritius-based Castleton Investment Ltd, an affiliate of pharmaceutical giant <keyword id="156335" type="COMPANY" weightage="80" keywordseo="GlaxoSmithKline-Plc">GlaxoSmithKline plc</keyword>. 
 Contradicting previous decisions that had restricted MAT to domestic companies, a tax court ruled on a theoretical question that Castleton would be liable to MAT if it transferred shares in <keyword id="6358248" type="ORGANIZATION" weightage="80" keywordseo="GSK">GSK</keyword>'s India unit to a Singapore arm. 
 Tax officials were initially reluctant to pursue the ramifications of the ruling for other foreign companies, but were prompted to do so by India's <keyword id="6359828" type="POSITION" weightage="80" keywordseo="comptroller-and-auditor-general">Comptroller and Auditor General</keyword> (CAG) in 2013. 
 
"We were in a position where you're damned if you do and you're damned if you don't," said the senior tax official. 
 
As the tax officials got no substantive response to their letters from the finance ministry, they sent notices to investors, then claims, in late March. 
The issue will be decided by the Supreme Court in August. 
 
"This is just one of those cases where the government and the bureaucracy have created a complete mess of what was not such a complicated issue," said a London-based fund manager. 
 
"Now they are trying to pacify investors, but all of this just leaves a very bad after-taste."

Did Arun Jaitley knowingly step into the multibillion-dollar FII tax row?

<ul><li>India’s largest maker of consumer staples reported a 19% growth to ₹1921 crore ($263 million) in its standalone net profit for the third quarter ending December 31</li><li>The 20% growth in its topline was led by the stellar growth in its foods and refreshment post the merger with GSK, a deal that was closed in April 2020.</li><li>The company said its volumes of the company rose 7% excluding the consumer businesses acquired from GlaxoSmithKline Plc and VWash.</li></ul>India’s largest maker of fast moving consumer goods, Hindustan Unilever (HUL), added nearly 20% to its quarterly profit, thanks to the growth in its foods &amp; refreshment business This segment includes popular brands such as Horlicks milk powder, Bru coffee, and Kissan Ketchup, which together contribute around 28% to the total revenue. The 20% growth in its topline was led by the stellar growth in its foods and refreshment post the merger with GSK. The company said its volumes of the company rose 7% excluding the consumer businesses acquired from GlaxoSmithKline Plc and VWash, compared to the same quarter last year. The $452 million deal with GSK, <a target="_blank" href="https://www.businessinsider.in/business/corporates/news/the-452-million-unilever-gsk-deal-had-to-be-changed-because-indias-love-for-horlicks-is-worth-billions/articleshow/75242870.cms" class="editor-rtfLink" style="">which was closed in April 2020</a>, couldn’t have come at a better time for HUL. Brands acquired from GSK have been big contributors to HUL’s volume growth and margin for three quarters now, at the height of the COVID-19 pandemic. “Given that GSK has better margins vs HUL, it would augment overall company margins going ahead,” a DART report highlighted after the company reported earnings post-September. <div type="image" title="HUL volume (3)" msid="80480707" hostid="261"></div> The signal from HUL’s earnings is that economic recovery among consumers is still uneven and tilted in favour of essential products like food. The recent spike in goods and services tax collection, e-way bills, and railway <a href="https://www.businessinsider.in/stock-market/news/exclusive-nilesh-shah-of-kotak-mahindra-amc-says-foreign-inflows-profit-growth-are-helping-sensex/articleshow/80339362.cms">freight movement in the month of December</a> may not have trickled down enough for more discretionary items like home care products, where HUL saw a decline in revenue. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HUL Segment </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue (October to December) </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year-on-Year Growth % </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Home Care </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3409 crore </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> -1.3% </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Beauty &amp; Personal Care </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4841 crore </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.8% </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Foods &amp; Refreshment </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3356 crore </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">44% </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Others </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹256 crore </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">70% </td></tr></tbody></table> HUL’s standalone net profit between October and December 2020 grew 19% to ₹1,921 crore ($ 263 million) compared to the same period last year. However, the profit was 4.3% less compared to the preceding three months. The revenue from the sale of products was up 20.48% to ₹11,682 crore year-on-year. “Health, hygiene and nutrition forming 80% of our portfolio continues to grow in double digits and we have seen significant improvement in discretionary categories,” the company said in a statement. Meanwhile, the share price of HUL ended 0.14% higher on Wednesday even as the benchmark index Sensex plunged over 900 points. The shares are up 15% since September 30. <div type="image" title="HULShare (2)" msid="80480728" hostid="261"></div> SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/gamestop-short-sellers-have-lost-5-billion-this-year-as-reddits-day-trader-army-squeezed-their-bearish-bets/articleshow/80471605.cms" data-type="tilCustomLink">GameStop short-sellers have lost $5 billion this year as Reddit's day-trader army squeezed their bearish bets</a> <a href="https://www.businessinsider.in/policy/economy/news/imf-projects-11-5-growth-rate-for-india-in-2021-only-major-economy-to-record-double-digit-growth/articleshow/80468095.cms" data-type="tilCustomLink">IMF projects 11.5% growth rate for India in 2021, only major economy to record double digit growth</a>

A timely deal with GSK closed during the lockdown has helped Unilever three quarters in a row in India

BCCL <ul><li>Sanofi plans to get thousands of subjects onboard across the world for the trials of experimental coronavirus vaccines that it is developing with GSK. </li><li>Once enrolled, the company will start early-stage trials in September. </li><li>The pharma giant has already partnered with GlaxoSmithKline Plc (GSK) and is researching also exploring other options simultaneously. </li><li>It hopes to introduce the vaccine next year, reported Reuters.</li></ul> Sanofi, a French multinational pharmaceutical company, says it is working on two different projects to develop a vaccine for COVID-19. The pharma giant has partnered with GlaxoSmithKline Plc (GSK) and is researching other options as well. It hopes to introduce the vaccine by next year, <a href="https://in.reuters.com/article/health-coronavirus-sanofi-exclusive/exclusive-sanofi-to-enroll-thousands-for-its-coronavirus-vaccine-trials-idINKBN22I084">reported Reuters. </a> The plan is to get thousands of subjects on board across the world to test the experimental coronavirus vaccines that it is currently developing with GSK. Once enough people are enrolled, the company plans to start early-stage trials in September. The project is backed by the US Health Department’s Biomedical Advanced Research and Development Authority (BARDA). “We envisioned Phase I to actually have several hundreds of subjects, so it is really a phase I/II trial,” said John Shiver, head of vaccine research at Sanofi. Phase I of clinical trials normally constitute a small number of healthy volunteers and then the experimental vaccine is given to a large number of people for trial. However, Sanofi might decide to skip Phase 1 altogether given the urgent requirement. The company has <a href="https://www.cnbc.com/2020/04/17/if-sanofis-coronavirus-vaccine-works-ceo-says-it-can-produce-up-to-600-million-doses-next-year.html">promised to manufacture</a> 600 million doses of the <keyword id="8624004" type="UNKNOWN" weightage="20" keywordseo="coronavirus-vaccine">coronavirus vaccine</keyword> by next year. Moreover, it’s also negotiating with some countries to bring in advance purchase orders for these doses, said the report. Sanofi will use an S-protein COVID-19 antigen to target coronavirus’ spike protein — that helps coronavirus enter the human body. Where GSK will provide an adjuvant, which will reduce the amount of vaccine needed per dose. Apart from GSK, the French pharma giant is also working with the US-based Translate Bio Inc to develop another vaccine. Ever since China’s scientist released the genome of the novel coronavirus, researchers around the world have been racing to develop a vaccine that has killed 257,301 and infected 3.6 million people around the world so far. As of now, 10 out of 100 vaccine candidates have reached the clinical testing stage. There are at least 70 research efforts underway to develop a coronavirus vaccine, <a href="https://www.who.int/blueprint/priority-diseases/key-action/novel-coronavirus-landscape-ncov.pdf">according to the World Health Organisation. </a> The front runner is the University of Oxford, which claimed that the clinical trial of the vaccine its developing is likely to finish by September. The world’s largest drugmaker, Serum Institute of India, has already started manufacturing the Oxford vaccine without prior approval. However, SII said it will not create a barrier in global supply by retaining the<a href="https://www.foreignaffairs.com/articles/world/2020-04-30/finding-vaccine-only-first-step"> intellectual property rights of the COVID-19 vaccine candidate. </a> See also: <a href="https://www.businessinsider.in/science/news/2-of-the-worlds-biggest-drugmakers-just-teamed-up-on-a-coronavirus-vaccine-and-theyre-aiming-to-launch-it-next-year/articleshow/75142796.cms">2 of the world's biggest drugmakers just teamed up on a coronavirus vaccine, and they're aiming to launch it next year</a> <a href="https://www.businessinsider.in/science/news/a-leading-coronavirus-vaccine-candidate-just-started-human-trials-in-the-us-pfizers-chief-scientist-told-us-how-it-could-be-ready-for-emergency-use-this-fall-/articleshow/75554678.cms">A leading coronavirus vaccine candidate just started human trials in the US. Pfizer's chief scientist told us how it could be ready for emergency use this fall.</a>

Sanofi, one of the largest drug makers, will test experimental coronavirus vaccine on humans starting September

New York, Sep 8 (IANS) With the upcoming US presidential elections heating up the vaccine race, nine biopharma leaders on Tuesday signed a historic pledge to continue to make the safety and well-being of vaccinated individuals the top priority in the development of Covid-19 vaccines. The CEOs of AstraZeneca, BioNTech, GlaxoSmithKline plc, Johnson &amp; Johnson, Merck (known as MSD outside the US and Canada), Moderna, Novavax, Pfizer and Sanofi have signed the pledge. The announcement comes at a time when US President Donald Trump is pushing for quicker approval for treatments and vaccines to fight the pandemic. Trump on Monday even hinted that the US could approve a vaccine for Covid-19 in October itself, ahead of the presidential elections in November. The pledge by the nine biopharma leaders on Tuesday suggests that they would not seek premature approval for their Covid-19 vaccine. They said that they will only submit for approval or emergency use authorisation after demonstrating safety and efficacy through a Phase 3 clinical study that is designed and conducted to meet requirements of expert regulatory authorities such as the US Food and Drug Administration (FDA). "We, the undersigned biopharmaceutical companies, want to make clear our on-going commitment to developing and testing potential vaccines for Covid-19 in accordance with high ethical standards and sound scientific principles," read the pledge. They said that they will also work to ensure sufficient supply and range of vaccine options, including those suitable for global access. "We believe this pledge will help ensure public confidence in the rigorous scientific and regulatory process by which Covid-19 vaccines are evaluated and may ultimately be approved," according to the pledge they took. A new survey revealed that a majority of Americans are sceptical about getting a Covid-19 vaccine once it becomes available. According to the CBS News poll, about 58 per cent said that they would consider it but wait to see what happens to others before getting one, down from 51 per cent in late July. --IANS gb/arm

9 biopharma leaders sign safety pledge for Covid-19 vaccine

<ul><li>Despite the 8% growth in HUL’s profit, the company share price dipped in red and was trading a percent lower. </li><li>The growth in its profit was led by the stellar growth in its foods and refreshment post the merger with GSK. </li><li>HUL reports 1% volume growth, excluding GSK Consumer.</li></ul>FMCG major Hindustan Unilever (HUL) reported an 8% growth to ₹2,009 crore in its standalone net profit for the second quarter ending September 30. Despite the growth in its profit, the company share price dipped in red and was trading a percent lower post the results announcement. <div type="image" title="HUL (2)" msid="78767163" hostid="261"></div> The growth in its profit was led by the stellar growth in its foods and refreshment post the merger with GSK. The volumes of the company rose 1% excluding the consumer businesses acquired from GlaxoSmithKline Plc and VWash, compared to the same quarter last year. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HUL Segment </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue (July to September) </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year-on-Year Growth % </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Home Care </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3318 crore </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> -1.5% </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Beauty &amp; Personal Care </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4535 crore </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.17% </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Foods &amp; Refreshment </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3379 crore </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">45.3% </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Others </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹210 crore </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">56% </td></tr></tbody></table> The company said, “Foods, tea and coffee sustained the high growth momentum and grew in double digits; our consumer focused activations and innovations are leveraging the 'in-home consumption' trend.” “Health, Hygiene and Nutrition forming 80% of our portfolio grew in double digits,” it added. The revenue numbers are better than the street expectation — which was pegging a 7% yoy growth in its profit. <keyword id="10138914" type="UNKNOWN" weightage="20" keywordseo="HUL-Q2-earnings">HUL Q2 earnings</keyword> <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">July to September 2020 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year-on-Year Growth % </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Profit </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> ₹2,009 crore </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> 8% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> ₹ 11,593 crore </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> 13% </td></tr></tbody></table> “Our operations and service levels are now back to precovid levels and we have accelerated the pace of digitising our operations under the re-imagine HUL agenda,” said HUL chief and managing director Sanjiv Mehta. The company has also declared an interim dividend of ₹14 per share. The management believes that the worst is behind them and remains optimistic on demand recovery going ahead. “The economic outlook has improved given the various initiatives taken by the government and Reserve Bank of India. In our sector, rural markets have been resilient but the demand in urban India, especially in metropolitan cities has been muted. We believe that the worst is behind us and we are cautiously optimistic on demand recovery,” said Mehta. Angel Broking has highlighted that excluding the impact of GSK merger, organic growth was 3% only. "We believe discretionary spends are still not back to pre-covid levels so these segments (Home care segment and beauty &amp; personal care segment) have recorded a marginal drop in revenue. Although, mainly due to cost control management, all segment results improved compared to previous year. Company also declared an interim dividend ₹14 per share. From an investment perspective, we are bullish on HUL considering that discretionary spends are recovering back to pre-covid level, improving distribution and focus on premium products," Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd said. SEE ALSO: <a href="https://www.businessinsider.in/policy/foreign-policy/news/trump-versus-biden-what-the-result-of-us-election-could-mean-for-india/articleshow/78750339.cms" data-type="tilCustomLink">EXCLUSIVE: Trump versus Biden — Here’s what the result of the US election could mean for India</a> <a href="https://www.businessinsider.in/business/auto/news/exclusive-why-tata-motors-ceo-is-not-worried-about-musks-tesla-coming-to-india/articleshow/78749755.cms" data-type="tilCustomLink">EXCLUSIVE: Why Tata Motors CEO is not worried about Musk's Tesla coming to India</a> <a href="https://www.businessinsider.in/business/startups/news/byjus-renewal-rates-stand-at-86-the-founder-of-the-11-billion-edtech-startup-shares-how-they-cracked-the-code-for-repeat-subscriptions/articleshow/78749254.cms" data-type="tilCustomLink">EXCLUSIVE: BYJU’S renewal rates stand at 86% – the founder of the $11 billion edtech startup shares how they cracked the code for repeat subscriptions</a>

HUL profit grows 8% in the second quarter but fails to cheer investors

<ul><li>HUL acquired brand Horlicks from GSK for about $398 million (₹ 3,041 crore) for the Indian market. </li><li>HUL’s parent company Unilever paid around $54 million (₹415 crore) for Horlicks brand for other geographies. </li><li>Edelweiss research predicts that by the end of the financial year 2020, HUL will be leading the food company business in India after buying out the Horlicks brand.</li></ul>Even in a volatile market, Hindustan Unilever’s (HUL) share price saw a 19% surge in the last one month. All thanks to the HUL and GlaxoSmithKline Consumer Healthcare (GSK) merger, which will make it India's biggest food company. <div type="image" title="HUL&amp;#39;s BSE Shareprice" msid="75245618" hostid="261"></div>Source:BSE The secret of the strength in the HUL-GSK deal is Horlicks, a health drink — which is made of wheat flour and malted wheat. However, Horlicks was earlier owned by one of GSK Plc’s group entities and hence did not automatically come into HUL’s fold pursuant to the merger. HUL paid GSK $398 million (₹30.5bn) more to buy Horlicks for the Indian market. And Unilever, HUL’s British-Dutch parent company, too paid around $54 million (₹4.15bn) to sell Horlicks in other countries. <div type="Article" hostid="261" msid="75243841" title="Coronavirus cases in India rise to 17,265— with 1553 new cases in the last 24 hours" mstype="2" mssubtype="0"></div> Horlicks accounts for 43% share in HFD category Almost 90 years after its India debut, Horlicks commands a premium and has managed to maintain its strong 43% volume share in India’s ₹6,500 crore health food drinks (HFD) category, according to <a href="https://economictimes.indiatimes.com/industry/cons-products/fmcg/gsk-fy19-value-share-in-health-drinks-weakens/articleshow/69350925.cms?from=mdr">ET</a>. And it could become much bigger under HUL whose distribution network is thrice as vast as compared to GSK in India. <div type="image" title="horlicks/twitter" msid="75245664" hostid="261"></div> Hence, just like its earlier acquisition of Indulekha, an ayurvedic oil for hair fall control, which saw a four-fold revenue jump in the last four years, HUL can propel Horlicks to new heights too. According to Edelweiss, the HFD category continues to provide immense growth opportunities. It grew by as much as 14-15% for a decade before the current economic slowdown amid coronavirus. Edelweiss research predicts that by the end of the financial year 2020 HUL will lead the food business in India much ahead of its competitors Nestle India, Britannia and ITC. HUL to become the biggest food company in India <table style="width:341.0pt;margin-left:4.7pt;border-collapse:collapse;mso-yfti-tbllook: 1184;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tbody><tr> <td style="width:132.0pt;border:solid windowtext 1.0pt; mso-border-alt:solid windowtext .5pt;background:white;padding:0in 5.4pt 0in 5.4pt; height:16.5pt"> Food companies </td> <td style="width:209.0pt;border:solid windowtext 1.0pt; border-left:none;mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt: solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt;background: white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> Turnover (₹ crore) FY20E </td> </tr> <tr> <td style="width:132.0pt;border:solid windowtext 1.0pt; border-top:none;mso-border-left-alt:solid windowtext .5pt;mso-border-bottom-alt: solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt;background: white;padding:0in 5.4pt 0in 5.4pt;height:47.25pt"> Hindustan Unilever (F&amp;R) and GSK consumer </td> <td style="width:209.0pt;border-top:none;border-left: none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:47.25pt"> ₹12763 </td> </tr> <tr> <td style="width:132.0pt;border:solid windowtext 1.0pt; border-top:none;mso-border-left-alt:solid windowtext .5pt;mso-border-bottom-alt: solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt;background: white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> Nestle India </td> <td style="width:209.0pt;border-top:none;border-left: none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> ₹12295 </td> </tr> <tr> <td style="width:132.0pt;border:solid windowtext 1.0pt; border-top:none;mso-border-left-alt:solid windowtext .5pt;mso-border-bottom-alt: solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt;background: white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> Britannia </td> <td style="width:209.0pt;border-top:none;border-left: none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> ₹11532 </td> </tr> <tr> <td style="width:132.0pt;border:solid windowtext 1.0pt; border-top:none;mso-border-left-alt:solid windowtext .5pt;mso-border-bottom-alt: solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt;background: white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> ITC </td> <td style="width:209.0pt;border-top:none;border-left: none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> ₹10935 </td> </tr> </tbody></table>Source: Company, Edelweiss research The merger of HUL-GSK also involves HUL distributing GSK’s over-the-counter (OTC) brands like ENO, Crocin and Sensodyne for five years, which will further strengthen HUL’s position in the chemist channel. SEE ALSO: <a href="https://www.businessinsider.in/business/ecommerce/news/you-wont-be-able-to-order-non-essential-items-on-amazon-flipkart-and-others-till-lockdown-is-lifted/articleshow/75230373.cms">You won’t be able to order non-essential items on Amazon, Flipkart and others till lockdown is lifted</a> <a href="https://www.businessinsider.in/policy/economy/news/india-amends-fdi-policy-to-prevent-opportunistic-acquisitions-of-indian-companies-by-the-chinese/articleshow/75222108.cms">India amends FDI policy to prevent ‘opportunistic acquisitions’ of Indian companies⁠ by the Chinese</a>

The $452 million Unilever-GSK deal had to be changed because India’s love for Horlicks is worth billions

<ul class="summary-list"><li>The size and variety of the <keyword id="6354525" type="UNKNOWN" weightage="60" keywordseo="healthcare">healthcare</keyword> sector make it suitable for almost any investor building a diversified portfolio.</li><li><keyword id="504636" type="PERSON" weightage="60" keywordseo="healthcare-stocks">Healthcare stocks</keyword> fall into six categories: pharmaceuticals, biotechnology, medical equipment, sales, insurance, and facilities.</li><li>While the healthcare industry has good growth prospects and is often economy-proof, it also carries some unique investment risks.<a href="https://www.businessinsider.com/?hprecirc-bullet"></a></li></ul>Investing in healthcare is enticing. After all, everyone needs medical care at some point in their lives; everyone uses health services of some kind. If you go by the adage "invest in what you know," then health stocks, which range from drug to insurance companies, certainly qualify.They qualify for economic reasons too. For years now, healthcare costs have far outpaced the rate of inflation. National health spending, which accounts for 18% of total US <a href="https://www.businessinsider.com/what-is-real-gdp" target="_blank" rel="noopener">GDP</a> (gross domestic product), is projected to reach<a href="https://www.cms.gov/files/document/nhe-projections-2019-2028-forecast-summary.pdf" target="_blank" rel="noopener"> $6.2 trillion by 2028</a>. Many healthcare stocks have exhibited robust earnings and share price growth - not only in the COVID 19-dominated year of 2020 but throughout the past decade - and many economists and analysts predict continued growth in the years to come. <h2>Why invest in healthcare stocks?</h2>Actually, the question might be why not invest in healthcare stocks. In fact, the healthcare industry is hard for investors to avoid. <ul><li>Health care is the second-largest sector (industry group) of the Standard &amp; Poors 500</li><li>Health care stocks represent over 10% of the <a href="https://www.businessinsider.com/what-is-nasdaq" target="_blank" rel="noopener">Nasdaq Composite Index</a></li><li>Of the 30 companies in the <a href="https://www.businessinsider.com/what-is-dow-jones" target="_blank" rel="noopener">Dow Jones Industrial Average</a> index, five are health-care related</li></ul>So, you might be hard-pressed to build a diversified portfolio of any kind that doesn't include at least some healthcare stocks.But it goes beyond ubiquity. Ranging from robotics to insurance companies, from century-old drug makers to fresh cannabis farms, the diversity of the health care sector also makes it an important place to invest. And because the sector includes both growth and value stocks, defensive stocks, aggressive small-cap plays and more conservative large-cap companies, you can achieve a lot of <a href="https://www.businessinsider.com/what-is-diversification" target="_blank" rel="noopener">diversification</a> within your portfolio via healthcare too.We'll get into the hows of investing in healthcare. But first, let's examine how the healthcare industry is organized, the types of companies it includes, and their characteristics.<h2>Types of healthcare stocks for investment</h2>When you invest in the healthcare sector you're actually investing in a broad range of industries. Some are manufacturing/production, others are service-oriented. Each element of the health care sector can act like its own mini-sector, with varying degrees of volatility and performance depending on demographics, government regulation, reimbursement patterns, scientific and technological breakthroughs.There are six generally agreed-upon healthcare subsectors, each with its own characteristics:<div type="image" title="healthcare industry sectors" height="2442" width="2501" msid="80106656" hostid="261"></div><h3>Pharmaceuticals</h3>Major pharmaceutical companies, aka "Big Pharma," manufacture and market prescription and over-the-counter drugs, creating a stable stream of revenue from continued sales. These firms also conduct research and development to create new drugs that undergo clinical trials in the hopes of ultimately being approved for use. Some of these efforts can result in "blockbuster" drugs such as cholesterol-lowering agents and diabetes drugs that generate profits for years. The fortunes of these big drugmakers wane when patents expire and generic competition eats into sales or improved drug therapies are approved and take precedent over established brands. Leading pharmaceutical companies include names such as Novartis AG, GlaxoSmithKline PLC, and Pfizer, the company that developed a COVID-19 vaccine with BioNTech.Generic drug manufacturers are another important member of the pharmaceutical subsector. These companies manufacture look-alike drugs that are cheaper than brand-name pharmaceuticals once the patents for those brand-name drugs expire. Because of insurer and government incentives to use less-expensive generics, these companies can benefit from increased demand for lower-priced drug alternatives. At the same time, because of the lower prices, generic drug makers experience thinner profit margins. In addition, many manufacturers have been under fire for faulty formulas and quality standards.<h3>Biotechnology</h3>Biotech firms also conduct research and development to create new drugs and therapies. However, they are often focused on one or two "breakthrough" products or treatments. Biotech firms are sometimes classified as part of the pharmaceutical drug subsector, but they often behave differently than their Big Pharma counterparts. While the established drug-makers often offer steady returns and income, biotech firms are more akin to volatile growth stocks. Because their pipelines are concentrated and because it can take years to get FDA approval for a promising product, investors can wait years for a payoff. Biotech firms include small startup companies and larger, more established drug makers such as Amgen and Biogen. BioNTech has become a well-known biotech name as Pfizer's partner in developing the COVID-19 vaccine.<h3>Medical equipment</h3>Medical equipment makers range from firms that make everything from commodity items such as bandages and gloves to expensive, high-tech equipment such as MRI machines and surgical robots. In the right product categories, medical equipment stocks can offer long-term growth as the growth in healthcare consumption continues to increase. Investors need to consider product innovation, patents, government approval and reimbursements, and market demand when evaluating medical equipment stocks. Large medical equipment companies include companies such as Johnson &amp; Johnson and Medtronic PLC.<h3>Sales and distribution</h3>This sector includes pharmacies and retailers and wholesalers of healthcare products. Companies can be influenced by general retail trends, but are also subject to consumer demand for medical and health goods, and to regulations affecting the healthcare industry. With more healthcare products and drugs being produced and used, growth in distribution networks has increased significantly in recent years, making healthcare distribution a growth industry with names such as McKesson and AmerisourceBergen. <h3>Managed Healthcare</h3>Managed healthcare is just another way of saying insurance companies. The field includes any company that provides health insurance policies, whether it be through employer-sponsored or private insurance, the Affordable Care Act exchanges, or socialized programs like Medicare and Medicaid.Since health-care coverage is a staple of people's lives, managed-care companies' returns tend to be steady. It also helps that this sector in the US is dominated by a quintet of companies. The "Big Five" firms are: <ul><li>UnitedHealth Group Inc. </li><li>Anthem Inc.</li><li>Aetna Inc.</li><li>Humana Inc.</li><li>Cigna Corp.</li></ul>Unlike the firms in other healthcare sectors, like biotech, the Big Five don't face many disruptors or new competitors. However, insurers' profits are tied to both consumer demand and government actions. The creation of new laws, or prospects of changes in laws, often causes ripples in the stocks, as the market tries to assess "what that'll mean for the insurance companies."<h3>Healthcare facilities</h3>Healthcare facilities firms operate hospitals, clinics, labs, physician offices, psychiatric facilities, and nursing homes. Major players include HCA Healthcare, which operates hospitals, and Laboratory Corp. of America.Although the demographics are in its favor, this subsector has had problems with profitability in the past - making its business models work. It's also somewhat subject to real estate market trends. It was particularly hard hit in 2020 by COVID-19, as consumers stayed away from routine doctor visits and hospitals wrestled with the demands of the pandemic.<h2>The pros and cons of healthcare stocks</h2>The number one advantage of investing in health care stocks? To participate in a sector that's expanding at a faster rate than the economy as a whole. Quick fact: The US spends more than any other country in the world on healthcare, and the health share of the economy is <a href="https://www.cms.gov/files/document/nhe-projections-2019-2028-forecast-summary.pdf" target="_blank" rel="noopener">projected to rise to 19.7% percent by 2028</a>.Healthcare stocks generally belong to an investment category of <a href="https://www.businessinsider.com/what-are-defensive-stocks" target="_blank" rel="noopener">defensive stocks</a> - that is, they provide consistent returns, regardless of how the stock market or economy is doing. But of course, some companies perform better than others. When investing in healthcare, look for companies that are best poised to take advantage of some underlying fundamentals that can fuel growth, including:<ul><li>An aging population</li><li>Treatment advances in chronic diseases and conditions, including obesity and diabetes</li><li>Technological advances such as telehealth and remote monitoring</li></ul><h3>Drawbacks of healthcare stocks</h3>Despite their defensive reputation, healthcare stocks do offer risks - some typical of any investment, some more unique to this industry. <ul><li>Regulatory: Subsectors such as pharmaceuticals and managed care are highly regulated by the government. So FDA standards, new rules/changes in Medicare, Medicaid, and other programs, and cost controls can all play a role in how a stock performs.</li><li>Political: No industry is immune to public opinion, but healthcare is a particularly hot button item. Consumer demand for lower costs and the ongoing debate for universal insurance programs and healthcare reform all can and do impact the prospect for healthcare corporate profits, and their stocks. </li><li>Economic: Although the industry as a whole has good growth potential, many providers and facilities are experiencing dramatic competition - and consolidation trends. as consolidation continues pricing, and profits, could decline.</li></ul><h2>How to invest in healthcare</h2>There are several ways to add healthcare stocks to your <keyword id="6362476" type="UNKNOWN" weightage="60" keywordseo="investments">investments</keyword>.<h3>Individual stocks</h3>All types of global healthcare stocks are available on the exchanges - not just US ones, but international companies as well, like Bayer AG (<a href="https://markets.businessinsider.com/stocks/bayzf-stock" target="_blank" rel="noopener">BAYZF</a>). You'll need to determine which subsectors best fit with your portfolio and from there determine which companies offer the best potential for appreciation, income, or whatever your main investment goal.<h3>Mutual funds and ETFs</h3>There are numerous healthcare sector mutual funds and ETFs. Many are index funds. Some follow the sector as a whole via an index like the S&amp;P 500 Health Care Index. There are also subsector indices such as the S&amp;P Pharmaceuticals Select Industry Index or the Russell 2000 Biotechnology index. Other funds are actively managed, with the manager choosing individual stocks within the healthcare sector based on corporate performance, outlook, and other factors. Some examples of healthcare funds include:<ul><li><a href="http://undresearch.fidelity.com/mutual-funds/summary/316390301" target="_blank" rel="noopener">Fidelity Select Healthcare Portfolio</a> </li><li><a href="https://markets.businessinsider.com/funds/vanguard-health-care-fund-investor-shares-us9219083071" target="_blank" rel="noopener">Vanguard Health Care Fund</a> </li><li><a href="https://markets.businessinsider.com/etfs/vanguard-health-care-index-fund-etf-shares-us92204a5048" target="_blank" rel="noopener">Vanguard Health Care ETF</a> </li><li><a href="https://markets.businessinsider.com/etfs/fidelity-msci-health-care-index-etf-us3160926008" target="_blank" rel="noopener">Fidelity MSCI Health Care Index ETF </a></li></ul><h3>REITs</h3><a href="https://www.businessinsider.com/what-is-a-reit" target="_blank" rel="noopener">Real estate investment trusts</a>, publicly traded funds that hold a portfolio of properties, often specialize in healthcare facilities - the physical buildings that contain hospitals, medical offices, and senior housing. Though a more indirect play, these healthcare REITs can be a way to invest in real estate and healthcare at the same time.<h2>The financial takeaway</h2>Healthcare stocks offer an unusual bevy of choices and diversity. Growth, value, aggressive, and low-risk investors can all find choices within this expansive sector. Its sheer size, the growth in healthcare consumption makes this sector hard for any diversified investor to ignore.Forecasts for healthcare consumption and spending suggest good growth prospects for this industry. As with any investment, though, healthcare has its downsides - and its own characteristic risks, such as its sensitivity to government regulation and political currents. That's why thorough research is an important part of healthcare investing.<h2>Related Coverage in <a href="https://www.businessinsider.com/investing-reference" target="_blank" rel="noopener">Investing</a>:</h2><h3><a href="https://www.businessinsider.com/what-is-an-index-fund" target="_blank" rel="noopener">What is an index fund? A low-cost, low-risk way to invest in the stock market</a></h3><h3><a href="https://www.businessinsider.com/etf-vs-mutual-fund" target="_blank" rel="noopener">ETFs and mutual funds can instantly diversify your portfolio, but they differ in how they're traded, managed, and taxed. Here's what you should know.</a></h3><h3><a href="https://www.businessinsider.com/how-to-invest-in-tech-stocks" target="_blank" rel="noopener">How to invest in tech stocks, a risky but fast-rising segment of the market</a></h3><h3><a href="https://www.businessinsider.com/how-to-diversify-portfolio" target="_blank" rel="noopener">How to diversify your portfolio to limit losses and guard against risk</a></h3><h3><a href="https://www.businessinsider.com/what-is-common-stock" target="_blank" rel="noopener">What is common stock? The most typical way to invest in a company and profit from its growth</a></h3>

How to invest in healthcare, a massive market sector that offers unparalleled diversification for portfolios

Pharmaceutical major <a href="http://www.businessinsider.in/searchresult.cms?query=Novartis">Novartis India</a> reported a 600% jump in its net profit at Rs 103.82 crore for the quarter ended September 30, 2015 on the back of slump sale of its OTC division to GlaxoSmithKline Plc for Rs 109.7 crore. It had posted a net profit of Rs 14 crore a year ago. 
 
The stand-alone total income from operations of the company declined 4.4% to Rs 224.43 crore during the reported quarter, from Rs 234.79 crore in the year-ago period. 
 "Proceeds of Rs 1,09.7 crore from slump sale of the OTC division to GSK CPL has been accounted for in the quarter ended September 30, 2015 results," <keyword id="69388" type="COMPANY" weightage="20" keywordseo="Novartis">Novartis</keyword> said in a statement. 
 
In January, its board had approved a slump sale of OTC business to <a href="http://www.businessinsider.in/searchresult.cms?query=GSK+consumer">GSK Consumer</a>. 
 
According to the company, sale of company’s OTC business in India follows the divestment of Novartis AG’s global OTC business, including all of Novartis AG’s major OTC patents, trade-marks and R&amp;D assets. 
 
Its parent Novartis AG also recently agreed to create a consumer healthcare joint venture with GlaxoSmithKline in which GSK will own a 63.5% stake while Novartis will own the remaining 36.5%. 
 
Last year, another deal was signed between Novartis and GSK where GSK will acquire Swiss major's vaccine business for $7 billion, while Novartis will purchase GSK's cancer drugs portfolio. The two companies will also combine their over-the-counter drug businesses under Glaxo’s management. 
 
In April last year, Novartis had agreed to divest its global animal health business to Lilly by transferring it to Elanco India, an affiliate of Lilly. 
 
"Proceeds of Rs 86.6 crore from slump sale of the animal health division to Elanco India have not been accounted for in the quarter as the transaction is subject to legal and regulatory approvals," Novartis said in the statement. 
 
In January this year, Novartis AG completed sale of its animal-health division to Eli Lilly &amp; Co for $5.4 billion as part of the Swiss drug giant’s portfolio overhaul. 
 
The sale of the animal-health division is part of a complex overhaul of Novartis that will enable it to focus on three core businesses—pharmaceuticals, eye care and generic drugs. 
 
Of late, <a href="http://www.businessinsider.in/searchresult.cms?query=pharma">Indian pharmaceutical sector</a> has been seeing intense M&amp;A activity. In March, <a href="http://www.businessinsider.in/searchresult.cms?query=Sun+Pharmaceutical+Industries+">Sun Pharmaceutical Industries</a> completed a $3.2 billion acquisition of <keyword id="82365" type="CITY" weightage="20" keywordseo="Ranbaxy-Laboratories">Ranbaxy Laboratories</keyword> Ltd to create India’s largest drug maker, with a local market share of 10%, and the world’s fifth-biggest generic pharmaceutical firm by revenue. 
 
The deal was closed after Sun Pharma faced mounting challenges procuring approvals from authorities including the courts, capital markets regulator and anti-trust watchdogs in India and the US. Sun Pharma and Ranbaxy also overcame allegations of insider trading that cast uncertainty over the deal. 
 
Other Indian pharma firms also have been aggressively looking at acquisitions in order to gain faster and easier access to new territories, increased balance sheet strength and new drug molecules. 
 
In July, Lupin acquired Russia-based ZAO Biocom for an undisclosed amount, entering a country that will be one of the top eight markets for drugmakers by 2018. 
 
The deal followed just two months after Lupin acquired Brazil-based Medquimica Industria Farmaceutica SA. In March 2014, it also purchased Mexican ophthalmic drug maker Laboratorios Grin SA, the fourth-largest pharma company in Mexico, for an undisclosed sum. 
 
In December 2014, Aurobindo Pharma acquired US-based Natrol Inc for $132.5 million for gaining access to the latter’s nutraceutical brands in the US. In January 2014, Aurobindo bought Actavis Plc’s (now Allergan Plc) Western European businesses to gain access to products, infrastructure and a marketing set-up in seven European countries. 
 
Domestic M&amp;A activities have also been gaining traction among drugmakers as they have been trying to leverage favourable valuations. In May this year, Torrent Pharma acquired ZYG Pharma Pvt Ltd that manufactures dermatological formulations such as creams, ointments, gels and lotions. This came after its December 2013 acquisition of Mumbai-based Elder Pharmaceuticals Ltd for around Rs 2,000 crore that gave it access to Elder’s brands in women’s healthcare, pain management and nutraceuticals. 
 
In addition, <a href="http://www.businessinsider.in/searchresult.cms?query=cadila">Cadila Healthcare</a> recently emerged the front-runner to snap the generic sterile injectables business of Ahmedabad-based Claris Lifesciences Ltd. 
 
Outbound M&amp;As in the pharma sector have specifically been driven by an increasing appetite among drugmakers for acquiring firms that have approved facilities outside the country and whose products are sold in expanding overseas markets. Indian drugmakers have also been looking for intermediaries and distributors with established, large distribution and marketing networks as snapping such players would help them market own products in international geographies. 
 
The series of acquisitions has also enlivened investors’ interest in pharma companies. 
 
Over the last year, Singapore’s Temasek Holdings has invested as much as $600 million to buy stakes in Intas Pharmaceuticals, Glenmark Pharmaceuticals and Sun Pharmaceutical Industries. 
 
According to a recent study by PricewaterhouseCoopers, India is expected to be one of the top 10 pharmaceutical markets by sales and reach a value of around $50 billion by 2020. 
 
Indian pharma firms are already among the global leaders in producing generics, accounting for more than 20% of the world’s generics. According to PwC, around $70 billion worth of drugs are expected to go off patent in the US over the next three years, and India is capable of manufacturing a substantial share of the product to support the resulting generics opportunities.

Indian pharma sector is going through an interesting phase with Novartis being the latest

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Thomson ReutersMichael Pearson, chairman of the board and chief executive officer of Valeant Pharmaceuticals International Inc, speaks during their AGM in Laval Quebec</div></div></div>Embattled Canadian drug company Valeant Pharmaceuticals has named its former chief financial officer Howard Schiller as interim CEO. Valeant's CEO J. Michael Pearson remains on medical leave with pneumonia.Shares of Valeant were last trading down $3.35, or -3.32%, at $97.51. The stock fell more than 28% in 2015.Here's the full release:Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) today announced that Howard B. Schiller has been appointed interim chief executive officer of Valeant, effective immediately. Mr. Schiller served as Valeant's chief financial officer from December 2011 through June 2015 and currently serves on Valeant's Board of Directors. Valeant also announced that Robert Ingram, Lead Independent Director, will serve as interim chairman of the Board of Directors. J. Michael Pearson remains in the hospital where he is being treated for severe pneumonia, and as the timing of his expected return is uncertain, he will be on a medical leave of absence until further notice. Robert Ingram said, "As Mike's medical leave continues, and the timing of his recovery and return remains uncertain, Howard will now step in as CEO on an interim basis. Howard's performance as Valeant's CFO, as well as his deep understanding of Valeant's operations, are excellent and we are grateful that he has agreed to take on this role. The Board will continue to work closely with Howard and the other members of the senior management team to implement Valeant's strategy successfully in Mike's absence." "Valeant is a strong company with a collection of great franchises and strong healthcare brands, innovative strategies and an exceptionally productive approach to R&amp;D. I appreciate the confidence the Board has placed in me as I step into this role while Mike focuses on his health. Our future is incredibly bright and I am looking forward to working with the rest of the senior leadership, as well as the entire Valeant team, to continue to execute on our strategic plan," said Mr. Schiller. Mr. Ingram added, "We appreciate the expressions of support and concern for Mike's health that we have received from Valeant's investors, employees, business partners and other stakeholders. While Mike's illness was sudden and unexpected, our strong management team has stepped in to keep our businesses on track and thriving. We particularly appreciate the leadership of Rob Chai-Onn, Ari Kellen and Rob Rosiello at this important time." Mr. Schiller most recently served as Valeant's chief financial officer from December 2011 to June 2015 and has been serving on the Board of the Company since September 2012. Mr. Schiller joined Valeant following a 24-year career at Goldman Sachs, a global investment banking firm. From 2009 to 2010, Mr. Schiller was the chief operating officer for the Investment Banking Division of Goldman Sachs. From 2003 to 2009, he was responsible for the global healthcare, consumer products, retail, industrial and natural resource businesses in the Investment Banking Division of Goldman Sachs. He is also on the business advisory council of the University of Chicago Law School. Mr. Schiller received his BS in economics from the Wharton School at the University of Pennsylvania and his JD from the University of Chicago Law School. Mr. Ingram has been serving on Valeant's Board since September 2010, and was the Chairman of the Board from December 2010 to March 2011. Since January 2007, Mr. Ingram has been a general partner at Hatteras Venture Partners, a venture capital firm focused on biopharmaceuticals, medical devices, diagnostics and related opportunities in human medicine. Since January 2010, he has served as a special advisor to the Chief Executive Officer of GlaxoSmithKline. He served as Vice Chairman Pharmaceuticals of GSK from 2002 through 2009 and Chief Operating Officer and President of Pharmaceutical Operations, CEO of Glaxo Wellcome plc from October 1997 to December 2000 and chairman of the board of Glaxo Wellcome Inc., Glaxo Wellcome plc's U.S. subsidiary, from January 1999 to December 2000. Mr. Ingram was President and CEO of Glaxo Wellcome Inc. from October 1997 to January 1999. Mr. Ingram is also a member of the Board of Advisors for the H. Lee Moffitt Cancer Center and Research Triangle Institute, as well as Chairman of the Board, Research Triangle Foundation of North Carolina and Glaxo North Carolina Foundation. Mr. Ingram currently serves on the board of CREE, Inc. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/martin-shkreli-hung-up-fbi-agent-live-on-video-before-his-arrest-2015-12">Martin Shkreli may have hung up on an FBI agent live on video hours before his arrest</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="44cHVreTpH9Qn6_dJu27aufe_B3nKzbP" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

Valeant names interim CEO while Michael Pearson remains on medical leave

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Thomson ReutersSeema (R), 33, displays an anti-retroviral drug used to treat HIV/AIDS, inside his residence in New Delhi May 16, 2012.</div></div></div>Instead of a daily combination of pills, HIV could be treated with a shot once every one or two months. And the new treatment could be here in as little as in five years.That's the <a href="http://www.gsk.com/en-gb/media/press-releases/2015/viiv-healthcare-announces-positive-headline-results-from-a-study-of-two-drug-injectable-regimen-for-hiv-maintenance-therapy/">promising finding</a> of a new study by GlaxoSmithKline Plc. and Johnson &amp; Johnson, <a href="http://www.gsk.com/en-gb/media/press-releases/2015/viiv-healthcare-announces-positive-headline-results-from-a-study-of-two-drug-injectable-regimen-for-hiv-maintenance-therapy/">which found that</a> the injection of two drugs that suppress HIV when taken every four or eight weeks worked just as well at reducing the amount of virus in the body compared with a traditional three-pill-a-day treatment.An estimated <a href="https://www.aids.gov/hiv-aids-basics/hiv-aids-101/statistics/">1.2 million Americans</a> have HIV, or human immunodeficiency virus, which can lead to acquired immunodeficiency syndrome, or <a href="https://www.nlm.nih.gov/medlineplus/hivaids.html">AIDS</a>. Unlike some other viruses, which the body can get rid of over time, once you have HIV, you have it for life. Some of today's HIV medications can drastically <a href="http://www.businessinsider.com/truvada-hiv-prevention-pill-is-working-2015-9">reduce the amount of HIV</a> in the blood (also known as viral load). However, maintaining treatment day-to-day can be incredibly difficult. People with HIV must often take <a href="http://www.hiv.va.gov/patient/treat/decisions-single-page.asp">multiple pills a day</a>, which can be <a href="https://aidsinfo.nih.gov/education-materials/fact-sheets/21/54/hiv-medication-adherence">hard to take routinely</a> and get consistent access to. That's where the injections' benefit comes in: It only has to be taken once, either every four or every eight weeks.The new treatment is a combination of two drugs, one called cabotegravir and another called rilpivirine.HIV specialist company ViiV Healthcare, a joint venture by pharma companies GSK, Pfizer Inc., and Shionogi &amp; Co, owns cabotegravir, which is being developed to treat and prevent HIV in both a pill form and an injection.Researchers are looking into the efficacy of using the injectable form as an experimental treatment in combination with Johnson and Johnson's rilpivirine, which was originally <a href="http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm256087.htm">approved in pill form in 2011</a>.The results announced Tuesday were part of a clinical trial which was done about a third of the way into the 96-week study. So far, the trial patients who were taking the cabotegravir and rilpivirine every four or eight weeks had comparable viral suppression rates to those taking the oral drug regimen. People who took the injection every four weeks had more adverse events - the most common being pain near the injection site - than those who took it every eight weeks or had the oral treatment.Although these results are promising, the treatment is still a long way from making its way to approval, but J&amp;J said in a press release that it's hoping to get the injection to market by 2020.<a href="http://www.bloomberg.com/news/articles/2015-11-03/every-other-month-shot-blocked-hiv-in-study-j-j-glaxo-find">As Bloomberg notes</a>, the injection still comes with some hurdles. For one thing, it's still too large to be taken without the help of a physician. It also must be kept cool, which could pose a problem for people in need of treatment who live in warm climates without access to a refrigerator.

A revolutionary new way to treat HIV could be on its way

<div class="KonaFilter image-container float_right"><div class="image">Reuters Staff/Reuters </div></div>HONG KONG (Reuters) - U.S. retailer Wal-Mart Stores Inc <WMT.N> said on Wednesday it will upgrade its vendor compliance process in China, requiring more documentation and making use of a computer-based system to help suppliers manage associated paperwork.</WMT.N>
The announcement came after state-owned China Central Television (CCTV) criticized the world's No. 1 retailer for circumventing its quality control process and fast-tracking some products with higher profit margins.
Wal-Mart will "ensure the correct documents and other required items are in place before the products are sold in our stores," the retailer said in a statement.
Documentation includes labels that accurately reflect ingredients, government test reports, China Compulsory Certificates, sample products or photographs, copies of manufacturing permits, details substantiating health claims and claims such as "organic" and "world-famous", official barcodes and papers on intellectual property.
"This process requires the collection, organization, filing and retention of well over one million documents annually," the company said.
"Wal-Mart China has now invested in a computer-based system enabling vendors to upload all required legal documents. This system was piloted in September of 2013 and is now ready for broad-based application across the supply chain."
Wal-Mart, which operates more than 400 stores and warehouses in China, said immediately after the CCTV report last week that it keeps a close watch over its supply chain.
It said it only uses its expedited special approvals process in specific circumstances such as when a supplier changes the size of a product or switches distribution agents.
In the statement on Wednesday, the company explained additional steps it would take to address supply chain concern.
Wal-Mart is the latest in a series of foreign companies CCTV has taken to task on issues ranging from pricing to poor quality products and shoddy customer service.
Targets of the reports, which have had mixed results, include coffee chain Starbucks Corp <SBUX.O>, consumer electronics groups Apple Inc <AAPL.O> and Samsung Electronics Co Ltd &lt;005930.KS&gt;, the KFC restaurants of Yum Brands Inc <YUM.N>, drugmaker GlaxoSmithKline PLC <GSK.L> and car brands Audi from Volkswagen AG<VOWG_p.DE>, Subaru from Fuji Heavy Industries Ltd &lt;7270.T&gt;, and Jaguar Land Rover from Tata Motors Ltd <TAMO.NS>.</TAMO.NS></VOWG_p.DE></GSK.L></YUM.N></AAPL.O></SBUX.O>
(Reporting by Clare Baldwin; Editing by Christopher Cushing)

Wal-Mart Responds To China's Allegations It Circumvents Quality Control Processes

<div class="KonaFilter image-container float_right"><div class="image">REUTERS/Sarah ConardSt. Louis attorney David Wasinger is seen in his Brentwood, Missouri office February 10, 2014.</div></div>WASHINGTON (Reuters) - Before attorney David Wasinger decided to take on two of the biggest global banks in federal court in New York, he had visited the city just twice: once when he was 6, and the second time on a tour bus with his children.
As the sole partner at a five-attorney firm in St. Louis, Missouri, Wasinger was mostly focused on local business litigation and had never represented a whistleblower.
But in January 2012 an old business acquaintance was ready to go public with accusations of widespread mortgage fraud at Bank of America's Countrywide unit, and he turned to Wasinger.
That touched off a series of events that put Wasinger at the center of two of the biggest legal cases to emerge from the 2007-2009 financial crisis, against Bank of America and JPMorgan Chase &amp; Co, respectively.
In January, the U.S. Attorney's office in Manhattan said it is seeking up to $2.1 billion in penalties from Bank of America after a jury in October found the firm liable for fraud over defective mortgages sold by Countrywide. Wasinger's client, former Countrywide Executive Vice President Edward O'Donnell, was the star witness for the prosecution.
And earlier this month, JPMorgan Chase agreed to pay $614 million to settle claims that it defrauded the U.S. government by submitting sub par home loans for federal insurance. The case relied in part on evidence provided by another Wasinger client.
"We've been very, very fortunate," Wasinger, 50, told Reuters in an interview. "I am just a country lawyer from Missouri trying to hold Wall Street accountable."
It has not been determined how much money Wasinger's firm or his clients will receive. Typically, a whistleblower who exposes fraud against the government can receive 15 percent to 25 percent of the settlement, though a court can cut the award depending on how much the person contributed to the case and other factors.
Experts say Wasinger's payout from the JPMorgan case could reach into the millions of dollars, an amount that would be a windfall for his relatively modest firm. His potential gains from the Bank of America case would likely be much smaller, as that case was tried under a law that limits whistleblower recoveries. Wasinger declined to comment on possible earnings.
Representing whistleblowers is a lucrative business for lawyers and is hyper competitive, since few corporate insiders who come forward actually have the information that leads to big government lawsuits. What makes Wasinger's situation unusual is that he stumbled into the field.
<h3>A CALL FROM A FRIEND</h3>
Wasinger grew up two hours north of St. Louis in Hannibal, Missouri, an agricultural community of 18,000 people that is famous for being Mark Twain's hometown. He earned his law degree from Vanderbilt University in Tennessee in 1988, and worked for a short time at a large regional firm in St. Louis.
In 1991, Wasinger joined a small law firm with a colleague that has morphed into the Wasinger Law Group. His wife, Colleen, is also an attorney at the firm, which handles real estate litigation and partnership disputes, among other local business matters.
It is a small but busy practice, according to Wasinger, who said he typically worked 40 to 50 hours a week. The Bank of America case took him to a whole new world of high-pressure New York trials and 90- to 100-hour work weeks.
Prior to that case, Wasinger had never before worked on litigation involving the False Claims Act, the law that allows whistleblowers to collect rewards if they disclose fraud against the government. But Wasinger had known his client for years, having represented another company O'Donnell worked at in an unfair competition case in the 1990s.
In February 2012, Wasinger filed a sealed case against Bank of America on behalf of O'Donnell, who accused Countrywide of selling thousands of shoddy mortgage loans to the government-controlled Fannie Mae and Freddie Mac.
Wasinger said he decided to file the suit in New York as the local U.S. Attorney's office did not have much experience with financial fraud cases. He drafted the complaint and traveled to the Big Apple, his third visit.
"He is a very dogged and determined lawyer," said Heidi Wendel, who dealt with Wasinger when she was a lawyer in the civil frauds unit at the Manhattan U.S. Attorney's office. She is now in private practices at the law firm Jones Day.
"He drafted a solid complaint that could get the government's foot in the door," Wendel said, referring to the Countrywide lawsuit.
Wasinger also filed a similar complaint with the Justice Department under another law, the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA). Then he waited.
In October 2012, the Justice Department joined O'Donnell's lawsuit. Bank of America decided to fight it, and the trial took four weeks with O'Donnell as the primary witness.
It was a much larger trial than any cases Wasinger had been involved with, and one he described as intense and stressful. The government's Countrywide trial team would often stay in the office until midnight or 1 a.m. One Justice Department lawyer slept on an air mattress in the office after his home was damaged by Hurricane Sandy.
Wasinger said he was often daunted by the army of Bank of America lawyers that would pull up to court each morning. "It was like a presidential motorcade," he said. "Meanwhile, DOJ doesn't even have a coffee pot in their office."
The government and Bank of America are waiting for a judge to determine the bank's penalty. A spokesman for Bank of America, headquartered in Charlotte, declined to comment. A spokeswoman for the U.S. Attorney's office also declined to comment.
<h3>A CALL FROM A STRANGER</h3>
After the Bank of America case became public in October 2012, Wasinger said he received dozens of phone calls from people claiming to be whistleblowers.
Most of their tales of corporate fraud were not credible, he said, and turned them away.
One of the callers was Keith Edwards, a former supervisor in JPMorgan's government insuring unit in Louisiana. Edwards told Wasinger he had been pushed aside when he tried to improve the quality control of loans submitted for insurance to the Federal Housing Administration or the Department of Veterans Affairs.
After hearing so many similar claims, Wasinger was skeptical. "You've got a lot of good lawyers in Louisiana," he told Edwards. If Edwards was serious, Wasinger added, they would have to meet.
Edwards drove through the night to St. Louis from Monroe, Louisiana, a nine-hour trip. He was impressed with Wasinger after their initial conversation, Edwards told Reuters via email.
In January 2013, Wasinger filed his second False Claims Act case, this time against the largest U.S. bank, on its home turf.
The U.S. Attorney's office was already deep into an investigation into JPMorgan's mortgage-lending practices. Edwards provided the government with new information, including about VA loans. Instead of litigating the case, as Bank of America had, JPMorgan decided to settle.
A JPMorgan spokeswoman declined to comment beyond its previous statement that the settlement "represents another significant step in the Firm's efforts to put historical mortgage-related issues behind it."
<h3>NO PAYMENT YET</h3>
Wasinger has yet to be paid for the two cases that he spent much of the past couple of years working on.
The government and Wasinger are currently negotiating Edwards' share of the JPMorgan deal. Under the False Claims Act, he can theoretically earn up to $150 million, but is likely to get less than that because the government had already conducted some of the investigation into JPMorgan prior to his complaint.
In the Countrywide case, although O'Donnell was a key witness, his payment is capped at $1.6 million under FIRREA because the False Claims Act portion of the suit was dismissed prior to trial. O'Donnell may be able to collect more money if he appeals that ruling.
Wasinger said he will get a cut of what his clients are awarded, but declined to give details.
The percentage that a lawyer for a whistleblower gets varies widely, but a general rule of thumb is 33 percent to 40 percent, according to Stephen Kohn, executive director of the National Whistleblower Center, a non-profit group that advocates for whistleblowers.
There have been only about 25 large cases - more than $200 million - in three decades' worth of False Claims Act prosecutions, he said.
In one of the largest payouts ever, a former quality manager at GlaxoSmithKline Plc won $96 million in October 2010 for exposing manufacturing defects at a plant in Puerto Rico. The drug company paid $750 million to settle the charges.
As Wasinger awaits payment, he and his firm have continued to work on their usual stable of local business litigation. Wasinger said he has no plans to seek out whistleblowers as clients but could represent another if the case was right.
The attorney said he wants some time to decompress. He has had to travel to New York frequently in the past two years, but spent most of his time in conference rooms and the courtroom. With each visit to the U.S. Attorney's office in downtown Manhattan, he has enjoyed watching construction progress on One World Trade Center and the 9/11 Memorial.
Once he gets paid, Wasinger said he plans to spend some of the money on his sons: Alex, who just turned 12, and Andrew, who is 10.
"I'm taking them to New York City," Wasinger said.
(Reporting by Aruna Viswanatha in Washington; Additional reporting by Nate Raymond in New York; Editing byKarey Van Hall, Tiffany Wu and Doug Royalty)

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