BackJB Pharma aims 12-14% revenue growth over next 2 years: CEO
JB Pharma partners with top international players like Reckitt, P&G, J&J, and Inova to manufacture cough and cold lozenges. It aims to diversify into lozenges for sleep disorders, anti-inflammatory lozenges, and immunity-boosting lozenges.
PremiumNew Delhi: JB Pharma, majority-owned by investment firm KKR & Co., aims to grow its revenue by 12-14% in the next couple of years with a thrust on domestic and contract development and manufacturing organization (CDMO) businesses, its chief executive Nikhil Chopra said.
The company is also foraying into new geographies like Europe and Brazil through tie-ups and product launches.
“We have outperformed the market during Q4 and fiscal year 2024 results, and going ahead, next couple of years, our growth trajectory for the overall business is to grow at around 12-14% in the top line, Ebitda at around 16-18% with margins going as high as 20%," he told Mint in an interview.
CDMOs offer pharmaceutical companies a range of services including drug development, manufacturing, packaging, and distribution.
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Elaborating on growth of the company’s businesses, he said that the Indian, CDMO, and emerging markets will be growing at 12-14%, while the rest of the world – Russia, South Africa, and the US – will grow at a high single-digit rate. It also plans to achieve double-digit growth in its ophthalmology business, which has been boosted by the acquisition of 10 brands from multinational pharma player Novartis for ₹964 crore
“With a continued thrust on domestic and CDMO businesses, we feel that the company will continue to deliver sustained revenue growth and improved operating margins in the medium to long term," he added. “Through our ophthalmology business, we plan to outperform the 14% overall market growth. Currently, margins run thin because it's just an in-licensing agreement with the portfolio being manufactured in the US, once it (licence) gets over in 2027, margins will be okay with production in India."
During Q4FY24, the company recorded a profit after tax of ₹126 crore, a 43% y-o-y rise, with earnings before interest, tax, depreciation, and amortization (Ebitda) increasing 16% to ₹210 crore. Ebitda margins stood at 24.4% for the quarter as revenue climbed 13% to ₹862 crore.
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For the full fiscal year, its revenue grew 11% to ₹3,484 crore, while net profit expanded 35% to ₹553 crore.
The Mumbai-based firm has plans to enter new geographies through new product launches. Since the beginning of Q4FY24, it has made lozenges – an oral drug that increases bioavailability, and is the primary CDMO business of the company - available in four European countries and plans to make this pan-Europe by the second half of the next fiscal.
“We have tied up with some top European players to make available lozenges there. It's four countries in the region, but we will make it pan-Europe by the second half of the next fiscal year. Also, by September- October of FY25, we will have a small dosage of lozenges available in the US, through a top player," Chopra added.
JB Pharma partners with top international players like Reckitt, P&G, J&J, and Inova to manufacture cough and cold lozenges. It aims to diversify into lozenges for sleep disorders, anti-inflammatory lozenges, and immunity-boosting lozenges.
“You should see these lozenges later in the year commercialized in the Middle East and Southeast Asia. And starting from the second half of the current fiscal till December 2026, we will be completing our foray into the Brazil market," he added.
The company plans to achieve $100 million in revenue through its CDMO business in 3-5 years. It plans to increase lozenges manufacturing from one billion annually to two billion dosages. Currently, the CDMO business makes $50 million annually and accounts for 27% of the revenue from JB's international business.
The company is open to acquisition opportunities at a justifiable price along with partnership and licensing agreements, Chopra said.
Chopra refused to comment on media reports early this year that KKR & Co, which holds nearly 54% in JB Pharma, is considering a share sale in the company.
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