Annual report FY24:
• While the company expects revenues to double in the next three years it does not foresee any major capex for the same period. We expect significant operating leverage to payout which will lead to expansion in our operating margins.
• There was an increase of 22.90% in median remuneration of employees during the financial year.
The number of permanent employees on the rolls of the Company is 371 for the year ended March 31, 2024. (vs 315 yoy)
• The expenditure incurred on Research and Development: 1.45cr vs 2.5cr yoy
• Oncology is forecasted to grow the fastest in terms of global spending at a CAGR of 13–16% through 2027. Oncology is projected to add 100 new treatments over five years, contributing to an increase in spending of $184Bn to a total of more than $370Bn in 2027 and facing limited new losses of exclusivity. While most major therapy areas have seen growth in medicine use in the last decade, oncology usage has far exceeded the others with a 10-year CAGR as of 2021 of 15.3%.
• Going forward Beta will continue to focus on building a solid franchise in the domestic market through robust brand building initiatives focusing on patient outcomes and strong clinical differentiation.
• Beta’s R&D strengths are in developing novel molecules that are going off patent in non-infringing processes, scaling complex chemistry challenges and novel formulation development.
• To achieve leadership position in the cytotoxic market the company is focused on building Rs 10 Cr & above brands. It is also strengthening its Hemato & Uro Oncology presence and is trying to increase customer base by launching new NDDS formulations and supportive care products. R&D in-house is already in advanced stages
• Going forward API development will be core to launching of new products and maintaining market leadership in select products. We also plan to export APIs to improve the operating leverage in the API business.
• In India the Oncology drugs market is expected market to grow in double digits for the next many years to come. Therefore, Beta Drugs being a leader in the oncology segment has long runaway ahead both in terms of opportunities and growth.
• Rate of interest – 7.5 – 8.5%
