From Edelweiss report
Key takeaways
India
AJP(Ajanta Pharma ) expects to grow 11-12% in India business over the next two years.
The company expects to launch two first-mover products per quarter.
Dermatology faced challenges three years ago where its largest brand melacare’s (anti
pigment cream) sales fell. But now it has started growing and is expected to surpass
industry growth in next two years.
US
US revenue in FY20 to be around INR5bn. The company has 27 pending approvals and
expects 25% growth over FY19-22E.
US is segment agnostic and the focus is on oral solids.
AJP has witnessed sharp price erosion in the US portfolio; however, going forward, it
expects single-digit price erosion.
The company hopes to file 8-12 ANDAs each year and launch ~10 products per year.
Currently, 10 products contribute 70% to US sales.
80% of filings are from Dahej plant.
Africa
Franco African market, the largest in export branded market for the company, is
growing at 3-4%. It is USD40-45mn market for AJP.
Asia Africa collectively growing 2x market growth.
Global fund is 70-80% of total malaria business.
Asia
This geography has faced hurdles during the past year, but has made a come back and
has normalised from this quarter. Major contributors being West and Central Asia.
Going forward mid teens growth is expected.