Comments
JB Chemicals & Pharmaceuticals is on track to be “ future-ready” in terms of talent and product portfolios, says Nikhil Chopra Chief Executive and Wholetime Director of the company.
The company looks to end March 2024, at a higher growth rate (9 – 10 per cent) than the Indian pharmaceutical market, Chopra told businessline. But the future requires “patience” given the headwinds in the international markets, be it the wars or the Red Sea route bottlenecks, he observed. To tackle the road ahead, JB Pharma does have good partners and portfolios in place, and new therapeutic areas and geographies to be explored, he said, alongside efforts to strengthen the local market.
Muted performance
The company’s CDMO (Contract Development and Manufacturing Organisation) business witnessed a muted performance in Q3 FY24, but its order book for the forthcoming quarters looks healthy, the company said. The aim is to get to $ 100 million in two/three years, but it will take time, he added.
Over three years ago, the JB Chemicals & Pharmaceuticals promoter family sold its controlling stake in the company to KKR.
The company recorded a revenue of ₹845 crores in third quarter of FY24 registering growth of 7 per cent from ₹793 crores in the same quarter last year. Operating EBITDA improved 22 per cent to ₹235 crores in Q3 FY24 as compared to ₹193 crores in Q3 FY23. Profit after taxes registered a 26 per cent growth to ₹134 crores in Q3 FY24 vs ₹106 crores in Q3 FY23.
The company’s overall revenue growth was impacted by strategic choices made in international business especially South Africa, the company said. Excluding South Africa, revenue grew by 10 per cent in Q3 FY2.
Also read: Pharma exports rise 8.2% in the last 9 months of 2023 to $20.40 billion
Chopra referred to their recent Ophthalmology foray, bringing in some big brands from Novartis. He did not divulge details on how this was panning out. The trademark license agreement with Novartis Innovative Therapies AG, was to kick-in from January 2027, and was for a consideration of $ 116 million payable on or before 31st December 2026, the company had then said.
A promotion and distribution agreement was also formalised with Novartis Healthcare Private Ltd for the ophthalmology portfolio for a period of three years starting December 2023. JB Pharma was to pay ₹125 crores for this exclusive promotion and distribution agreement. The company had also then committed to offer employment to the impacted associates working on this portfolio.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.