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Piramal Pharma is looking to clock revenues of $2 billion by 2030, powered by three segments - contract development and manufacturing, complex hospital generics and consumer healthcare.
The company looks to double its revenues and triple EBIDTA to 25 per cent , said Chairperson Nandini Piramal, outlining the drugmaker’s ability to service customers in “the East and West,” without the China option, as a key driver in its CDMO operations. The CDMO business contributes to 58 per cent of the company’s revenues and that is unlikely to change in the projected timeline, Piramal said, responding to a query from businessline.
Increase in RFPs
The company’s revenues stood at ₹8,171 crore ($987 million) for the year ended March 31, 2024. Speaking on the opportunities expected from the US Biosecure Act (still to be passed by the US Senate), Piramal said, the company had seen an increase in RFPs (request for proposals) in the last several months. This could also be from the changing funding patterns of biotech companies (who give out work on contract), she observed. However, the growth plans charted by Piramal Pharma did not include opportunities that may open up from the possible passing of the Act, she added. (The US Biosecure Act looks to restrict US companies from working with some Chinese biotech companies.)
The company’s projections said that CDMO would touch $1.2 billion with 25 per cent EBIDTA margin by 2030, complex hospital was pegged at $600 million revenues with 25 per cent EBIDTA margins and consumer healthcare at $200 million with double-digit EBIDTA margins. The company expects to reduce its net debt position from the present ₹4,000 crore.
Growth in the CDMO space would be driven by differentated services and work involving on-patent molecules; complex hospital generics would see a shift in portfolio strategy towards specialty and differentiated products and the consumer healthcare business would focus on power brands and new product innovations, the company said.
Piramal Pharma shares were up 5.21 per cent on BSE, at ₹228 (2.15 pm), on Wednesday.
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