According to chairperson Nandini Piramal, Piramal Pharma will expand its injectables pipeline to enhance growth. The company launched Chlorpromazine Hydrochloride recently, with its complex hospital generics business seeing a 14% growth in Q3. Reports indicate their share in inhalation anesthetics and a focus on new products suggest promising future revenue, aiming for $2 billion by FY30.
Key Highlights
– Piramal Pharma plans to expand its injectables portfolio to enhance growth, according to chairperson Nandini Piramal.
– The company launched Chlorpromazine Hydrochloride for psychiatric treatment in the U.S. on January 22.
– The complex hospital generics division reported a 14% year-over-year growth in Q3 with ₹654 crore revenue, primarily from inhalation anesthetics.
– Despite competitive pricing pressure, the niche segment has a profit margin of 25-30%, as reported by JM Financial.
– Revenue increased 12.54% year-on-year to ₹2,204.22 crore, yet profits declined 63.6% to ₹3.68 crore in Q3.
Expansion Plans for Injectables
Piramal Pharma Ltd aims to broaden its injectables pipeline strategically to propel growth in the critical care sector. Chairperson Nandini Piramal stated in a Mint interview that the strategy is driven by a strong presence in the inhaled anesthetic generics segment across the U.S. and emerging markets. She emphasized that a diverse mix in product launches, including licensed development projects and fully developed products, will support this growth.
Recent Product Launches and Pipeline
The company recently introduced Chlorpromazine Hydrochloride, specifically designed for treating psychiatric conditions, on January 22 in the U.S. Furthermore, in 2024, it launched Edaravone injection for amyotrophic lateral sclerosis (ALS) and a new formulation of Zinc Sulfate. This follows preceding launches of Pantoprazole Sodium and Doxycycline injectables in 2023.
Growth in Complex Hospital Generics
As reported, Piramal Pharma’s complex hospital generics business experienced a robust growth of 14% year-over-year in Q3, driven by substantial sales in inhalation anesthetics. The company commands a leading position as the largest supplier of Sevoflurane in the U.S., holding over 40% market share, and over 70% market share for Intrathecal Baclofen, a muscle relaxant.
Market Performance and Future Outlook
Piramal’s inhalation anesthetic, Sevoflurane, represents about 80% of the global market, praised for its potent efficacy and lower greenhouse gas emissions, according to ICICI retail research. Although affected by pricing challenges, the company has established a profitable position with a margin of 25-30%. JM Financial anticipates an 11% compound annual growth for this segment from FY24 to FY27, especially with the new injector products launching.
CDMO Business Growth
Additionally, Piramal Pharma reported an 18% year-on-year growth in its contract development and manufacturing (CDMO) segment during the initial nine months of FY25, fueled by strong demand in both commercial manufacturing and generic API sectors. With a recent investment of $80 million in expanding its Lexington plant, the company aims to capitalize on U.S. market opportunities amidst uncertainty regarding future regulations.
Recent Financial Highlights
For Q3, Piramal Pharma declared a revenue increase of 12.54% to reach ₹2,204.22 crore. However, profits fell significantly by 63.6% to ₹3.68 crore, illustrating challenges amidst growth. Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 6% to ₹350 crore, with maintaining an EBITDA margin of 16%. The firm estimates an eventual target of $2 billion in revenue with a 25% EBITDA margin by FY30.
Piramal Pharma is strategically expanding its injectables portfolio, aiming for significant growth in the critical care sector. Recent product launches, strong market share in inhalation anesthetics, and promising results in its complex hospital generics business underscore its potential for continued success. Despite facing profitable challenges, the outlook remains positive as the company adapts to market needs and focuses on innovative product development.
Original Source: www.livemint.com
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