In a crowded contract development and manufacturing (CDM) marketplace, Piramal Pharma expects its on-patent and differentiated offerings, besides its integrated approach, to give it an edge, says Chairperson Nandini Piramal.

The CDM and consumer healthcare space has attracted a host of pharmaceutical companies, but as an early mover in the segment, Piramal said the strategy was to to stay the course and grow these businesses.

“The biotech ecosystem has been tough. But what’s worked is that there are a number of molecules that have graduated to commercial,” Piramal told businessline, adding that order inflows increased despite a difficult ecosystem. Pointing to an integrated approach with a presence across geographies, she said customers were able to decide on where they want to place their products, depending on the type of products. “We are going to continue to grow, (and) if the biotech funding improves, then that would be an upside,” she added.

Stay the course

Meanwhile, as peers expand or invest in allied businesses like pathology labs and digital-tech companies, Piramal said the focus will be on the three businesses (CDMO / complex hospital generics and consumer healthcare) and to scale them.

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The company closed the year ended March 31, 2024 with a revenue of ₹8,171 crore, up 15 per cent from the same period last year. The CDMO business grew 1 9 per cent to ₹4,750 crore (from ₹4,001 crore). Revenue from the commercial manufacturing of on-patent molecules had more than doubled to $116 million in FY24 compared to $52 million in FY23, she pointed out.

Further, in this segment, revenue from differentiated offerings increased from 37 per cent in FY23 to 44 per cent in FY24; and innovation related work increased from 45 per cent in FY23 to 50 per cent in FY24. Over 40 per cent of the service order book in FY24 was from integrated projects, the company said, reflecting customer preference for integrated service offerings. The company clocked a net profit after tax (before exceptional Items) of ₹81 crore in the year under review.

Financial performance

Piramal Pharma revenue grew 18 per cent to ₹2,552 crore in the three months ended March 31, 2024, compared to ₹2,164 crore in the previous year. Its CDMO space grew the most in the period under review at 29 per cent to ₹1,649 crore, compared to ₹1,281 crore. The company’s net profit after tax (before exceptional Items) more than doubled in the quarter under review to ₹132 crore compared to ₹50 crore in the same period last year. The quarter saw an exceptional item of ₹31 crore towards non-cash write down of investment and license rights in relation to a certain third-party product no longer being commercialized, the company said.

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