New launches likely to fuel domestic growth: JB Pharma CEO Nikhil Chopra

JB Pharma is on track to deliver strong results in the second half of financial year 2024-25

Mumbai-based pharmaceutical company JB Pharma is targeting a 12-14 per cent revenue growth and 26-28 per cent Ebitda (earnings before interest, taxes, depreciation and amortisation) margin in the small to medium term, with new launches expected to fuel growth in the domestic market.

 

In an interaction with Business Standard, JB Pharma chief executive officer (CEO) Nikhil Chopra said the firm’s recently launched products, such as Metrogyl DG LA gel, used for mouth ulcers, and expanded Sporlac franchise are expected to generate Rs 6-8 crore and Rs 15 crore in revenue, respectively, for the year.

 

The company is looking to back it up with potential launches of a syrup form of iron supplement Bizfer XT in Q3, followed by a probiotic for dental health in December this year.

 

 

“When we launch a product, we expect that it should fetch between Rs 6 crore and Rs 8 crore revenue yearly,” Chopra added.

 

The company has recently announced a 16 per cent year-on-year (Y-o-Y) rise in consolidated profit after tax (PAT) for Q2FY25 at Rs 175 crore, while its revenue from operations increased to Rs 1,001 crore, a 13 per cent Y-o-Y rise. This growth is being attributed to strong showing in the domestic formulations business, which saw a 22 per cent Y-o-Y growth.

 

Commenting on the reasons behind the domestic performance, Chopra said it was on the back of work that the company has done in three big therapy areas — cardiology, hypertension, and lipid management.

 

“The good news for us this quarter was that our gastrointestinal (GI) portfolio, which is a combination of Sporlac and Metrogyl, did fairly well. Both (Sporlac and Metrogyl) have demonstrated a good growth of high single digit,” he added.

 

The company had also reported a muted growth in the contract development and manufacturing organisation (CDMO) business, due to seasonal trends.

 

Chopra stated that despite this, JB Pharma is on track to deliver well in the second half of the current financial year (H2FY25).

 

“Some CDMO sales got deferred to Q3FY25 due to material availability challenges, which further impacted the Q2 performance. But CDMO business is expected to report strong numbers for Q3 and Q4. Annualised order forecast continues to remain healthy despite muted H1,” he added.

 

Commenting on future acquisition plans, Chopra said the company continues to evaluate assets depending upon availability in the market.

 

“Given a choice, we would like to do something in the world of cardiology, metabolics, probiotics, ophthalmology, and paediatrics. Otherwise, we will be open to get into any new segment where we think we should be able to do justice to the asset that we are buying, wherein the asset grows better than the market,” he added.

 

Chopra stated the company is rightly poised from a balance sheet perspective. “If there is any good opportunity, we will be more than happy to buy,” he said.