Piramal Pharma Ltd, which has a strong presence in the inhaled anaesthetic generics segment in the US and emerging markets, plans to expand its pipeline of injectables to drive growth, chairperson Nandini Piramal told Mint in an interview.
The company launched Chlorpromazine Hydrochloride, an injectable used to treat psychiatric disorders, in the US on 22 January. This is the latest injectable from Piramal Critical Care, the company’s complex hospital generics arm.
In 2024, it launched Edaravone injection, used to treat amyotrophic lateral sclerosis (ALS), and a new concentration of Zinc Sulfate for injection, which followed the Pantoprazole Sodium injectable and the Doxycycline injectable in 2023.
“There will be growth in inhalation anaesthetics as well as our injectable pain and intrathecal products, but it is a generic business. We have a good market share already, so we expect there to be more growth coming from these complex injectables that we will add to the portfolio,” Piramal said. “We’ll do launches at a variety of timelines. For example, we will do licensing of development projects but also products that are already developed and launched. So, it will be a mix.”
Complex hospital generics
The pharma company reported a 14% year-on-year growth in its complex hospital generics business in Q3, with revenue of ₹654 crore, driven largely by strong sales volumes in its inhalation anaesthesia portfolio. The company is the largest seller of Sevoflurane, an inhalation anaesthetic, in the US market with an over 40% market share, as well as an over 70% market share in the US for Intrathecal Baclofen, a muscle relaxant.
Sevoflurane makes up about 80% of the global inhalation anaesthesia market since it is potent and rapidly acting and emits comparatively less greenhouse gases, according to a report by ICICI retail research. It also has faster emergence and recovery than other drugs, the paper noted.
Despite pricing pressure, the company’s hospitals generics business has a niche with limited competition and differentiated channels, making it a lucrative segment offering a margin of 25-30%, brokerage JM Financial said in a report last month. With the addition of capacity for Sevoflurane in India, as well as the injectables product launches, the brokerage expects 11% compound annual growth for the segment during FY24-27.
Piramal Pharma sold its domestic formulations business to Abbott for $3.8 billion in 2010, following which it beefed up its critical care generics business with key acquisitions. The non-compete agreement with Abbott expired in 2018.
Tailwinds in the US
Piramal Pharma’s contract development and manufacturing (CDMO) business grew 18% year-on-year in the first nine months of FY25 on the back of continued traction in the on-patent commercial manufacturing and generic API business.
The company, which invested $80 million in capacity expansion in its Lexington, US, plant last year, expects good traction amid uncertainty over President Donald Trump’s future moves.
“I don’t know what exactly they’re planning so we’ll have to wait and see, but for those that want to manufacture in the US, we do have capacity available, and we have a very strong manufacturing network in the US,” Piramal said.
Piramal expects the CDMO business to be the biggest margin driver for the company in the near term, “but overall, I expect good double-digit revenue growth from [all businesses].”
Piramal Pharma posted its Q3 results on Tuesday with revenue growing 12.54% year-on-year to ₹2,204.22 crore. Profit declined 63.6% to ₹3.68 crore. Ebitda grew 6% year-on-year to ₹350 crore, and the company reported an ebitda margin of 16%. The company estimates it will reach $2 billion in revenue with a 25% ebitda margin by FY30.
Piramal Pharma shares fell 0.25% to ₹239.10 at 11:28 am on the BSE. The shares have advanced about 72% in the past one year.
Source:https://www.livemint.com/companies/piramal-pharma-injectables-generics-anaesthetics-nandini-piramal-cdmo-11738211998856.html