JB Pharma Expects Its India Biz to Best Mkt Growth Ra... https://economictimes.indiatimes.com/epaper/delhicapi...

Epaper
English Edition | 22 May, 2024, 12:19 AM IST |

JB Pharma Expects Its India Biz to Best Mkt

Growth Rate in FY25
By Viswanath Pilla, ET Bureau Last Updated: May 21, 2024, 03:29:00 AM IST

Synopsis
KKR-backed JB Pharma forecasts its revenues to grow 12-14% and the earnings before
interest, tax, depreciation, and amortisation (Ebitda) margins by 27-28% in FY25, the
company’s top executive said.

KKR-backed JB Pharma forecasts its

revenues to grow 12-14% and the
earnings before interest, tax,
depreciation, and amortisation (Ebitda)
margins by 27-28% in FY25, the
company’s top executive said.

In an interview to ET, Nikhil Chopra,

CEO and wholetime director of JB
Pharma said he expects the India business to grow above market growth rate
led by focus on chronic portfolio, generating more prescriptions, growing top
brands, while new order in�ows in CDMO business and commercialization of
registered products in emerging markets will drive growth in FY25.

“We are very much sure we should be growing (domestic formulation

business) around 300 basis points better than the market (growth) in India
with the portfolio,” Chopra said.

He added that the growth forecast is based on existing business, and any
acquisition will be accretive. Chopra said the contract development and
manufacturing organisation (CDMO) business which contributes 13% of total
revenue is expected to see growth revving up from second half of FY25 led by
new order in�ows from Europe, US, and entries into new geographies like
Brazil and Mexico. JB Pharma is one of the world’s leading producers of
lozenges.

“I am projecting the $50-million business to grow to $100 million if all these

plans in place now work out. We have capacity, we have partners, we have new
products, some of our melatonin (used in treating insomnia) based
combinations will start seeing the light probably at the end of this year; we are
very bullish on that business,” Chopra said.

For FY24, JB Pharma posted its highest ever �nancial numbers. The Mumbai-
based company’s revenue grew 11% YoY to ₹3,484 crore. The Ebitda margin
grew 330 basis points YoY to 27%, while pro�t after tax grew 35% YoY to ₹553
crore. Chopra said India and CDMO should constitute around 75-80% of total
revenue in 2-3 years.

Domestic (54%) and CDMO (13%) constitute 67% of total revenue in FY24. JB
Pharma is also lining up new product registrations and launches in Sub-
Saharan Africa, Latin America, Southeast Asia and Middle East regions.
Chopra said the results of commercialisation will be seen in FY26.

Chopra, earlier a veteran at Cipla heading domestic formulation business, was

roped in by KKR in October 2020 to helm JB Pharma. Chopra has put the
Mumbai-based drugmaker on an accelerated growth path by putting in place a
fresh go-to-market strategy with therapy diversi�cation, raising MR
productivity, making big brands bigger, focusing on chronic therapies, and
acquisitions of brands and portfolios.

Under his watch, JB Pharma has completed four acquisitions investing $200
million.

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The company signed an agreement in December last year with Swiss

multinational giant Novartis to acquire a portfolio of 15 ophthalmology drugs
for ₹964 crore. The acquisition will take e�ect from January 2027.

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