Piramal Pharma Q1 results and concall highlights –
Revenues- 1749 vs 1482 cr, up 18 pc
EBITDA- 171 vs 89 cr, up 92 pc
PAT- (-) 99 vs (-) 109 cr
Sales breakup-
CDMO- 898 vs 770 cr, up 17 pc
CHG (complex hospital generics)- 617 vs 508 cr, up 22 pc
OTC- 239 vs 211 cr, up 13 pc
Successfully closed US FDA inspection at Pithampur with zero observations
Historically, H2 is better than H1 both iro revenues and profitability
Rights issue launched at Rs 81. Promoters subscribed to it fully
Launched 11 new products in the India – OTC business
OTC power brands- Lactocalamine, Littles, Polycrol, Tetmosol, I-range grew 15 pc & contributed to 23 pc of OTC business
Have raised 1050 cr via rights issue primarily for debt repayment
CDMO business witnessing continued order flow momentum. Generic APIs demand also improving
Witnessed string inhalation anaesthesia sales. Launched one new product ( in CHG business ) in US in Q1. More products lined up in pipeline
Recently expanded capacity at Grangemouth facility to help in Anti Body drug conjugate business ( in CDMO segment )
CDMO breakup of molecules –
Pre Clinical – 20 pc
Phase -1 – 25 pc
Phase- 2 – 12 pc
Phase-3 – 43 pc
Piramal Pharma is 4th largest inhalation anaesthesia company in the world wrt combined mkt share of – Sevoflurane, Desflurane, Isoflurane and Halothane
Has 40 pc mkt share for Sevoflurane in US
Saridon, Supradyn are also company’s popular OTC brands
Company has 49:51 JV with AbbVie for sale of Othalmology products in India. Strong presence in – Dry Eye, Glaucoma, Infections and Inflammation
Net Debt at end of Q1 at 4700 cr
It was 4800 cr at end of Q4 LY
In last 9 months, 05 of company’s facilities have cleared US FDA audits
Currently have a pipeline of 27 injectable products under development in the CHG business
In the CDMO segment, 35 products are in Phase-3 This can provide lucrative commercial manufacturing contracts for the company
Q1 capex spend-147 cr
Company to go slow on further capex to keep the Debt levels under control. As such, most of the capacity expansion is already done
Company expects the scale of business to expand signifigantly in H2 leading to better operating leverage and hence profitability
Company expects interest costs to fall significantly wef Q3 when the proceeds of rights issue are utilised
Sevoflurane comprises 80 pc of global demand for inhalation anaesthesia and is also growing well. Company currently can’t keep up with the demand, hence expanding/debottlenecking capacities of Sevoflurane
Expect most of the Phase-3 CDMO molecules to commercialise in next 3 yrs – this can be a big revenue/profitability driver in the future
WuXi, Lonza and Piramal are the only major players in anti body drug conjugates (ADC) Mkt. Their demand is steadily going up. Company’s expanded ADC facilities are expected to go live in H2
The new CHG product launched in Q1 in an injectable product
Disc: holding, biased
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