Piramal Pharma - Annual Report - 2022-23 summary -
Has 17 manufacturing locations
Distribution network spread over 100 countries
Works under 3 segments -
CDMO business
Complex Hospital Generics ( CHG )
India Consumer Healthcare ( ICH )
Has a JV with AbbVie in India ( holds 49 pc stake )- one of the Mkt leaders in Ophthalmology in India
Has a 33 pc stake in Yapan Bio - operates in biologics/ bio therapeutics and vaccines space
Revenue break up -
North America - 45 pc
Europe - 20 pc
Japan - 4 pc
India - 20 pc
Others - 11 pc
69 pc sales from regulated markets
Segment wise revenue break up -
CDMO - 56 pc
CHG - 32 pc
ICH - 12 pc
CDMO -
Offer CDMO services in High potent APIs, Antibody Drug conjugates, Peptides, sterile injectables and hormonal products
Manufacturing facilities located across India, UK, North America. Have a deep customer base across - Big Pharma, Bio-Techs and Generic Pharma majors
Have successfully cleared 36 regulatory inspections since 2022
Company also offers CRO services from its facility at Ahmedabad
Also makes 30 off patent APIs for global clients. Also makes Vitamin / Minerals ingredients and premixes for human and animal nutrition
Top 5 customers contribute 25 pc of CDMO revenues. Breakdown of revenues from Discovery:Development:Manufacturing currently at - 5:30:65 ( includes generic and on-patent manufacturing ). Currently, company is manufacturing 18 on Patent commercial molecules. Company also has 35+ molecules in Phase - 3 development phase right now
Within CDMO segment, revenue breakup is as follows -
US- 47 pc
Europe - 27 pc
Japan - 3 pc
India - 14 pc
Others - 9 pc
Among the 30 pc CDMO revenues that come from Development services, the breakdown is as follows -
Pre Clinical - 20 pc
Phase -1 - 25 pc
Phase -2 - 12 pc
Phase - 3 - 43 pc
CHG -
Has a portfolio of 35 hospital focussed products in areas of Inhalation anaesthesia, Injectable anaesthesia, pain management, Intrathecal therapy (delivering pain killers directly at spinal cord) and other injectables - sold across 6000 hospitals
PPL is 4th largest company in global Mkts for inhalation anaesthesia - Sevoflurane, Desflurane, Isoflurane and Halothane
Biggest player in Sevoflurane (inhalation product - 40 pc Mkt share ) and Baclofen ( pre-filled syringes - 78 pc mkt share ) in US mkt
Both - inhalation and intrathecal therapies are complex and capital Intensive
Vertically integrated - in inhalation products. Company to continuously intensify efforts to increase the degree of vertical integration so as to sharpen its competitive edge
Has a direct sales for in US
Product pipeline of > 25 SKUs in the CHG segment
In process of expanding capacities at Dahej and Digwal facilities. Dahej makes KSMs for inhalation anaesthesia products while Digwal facility makes the APIs
Company’s Fentanyl brand ranks No-1 in Japan, RSA and Indonesia
Sales break up of CHG sales -
US- 56 pc
Europe - 17 pc
Japan - 4 pc
India - 6 pc
Others - 17 pc
ICH -
Has over 30 different OTC products with multiple SKUs. Mainly present in categories like - analgesics, skincare, Vit/Minerals, women’s health, Digestives, Hygiene and protection. Also has manufacturing and distribution rights for Supradyn, Saridon, Becozym and Bensdon from Bayer Pharma
Own power brands include - I-Pill, I-Range, Lactocalamine, Littles, Tetmosol, Polycrol. Company has introduced Littles baby diapers. If they find traction in the Mkt, the company may end up having a huge winner at hand
Other brands include - NIXIT, Joint Flex etc
Now strengthening presence in E-Comm, Modern trade channels
Company spending / investing aggressively behind brands. Not averse to acquisitions in this space provided the financial conditions of the company allow for the same
Company Infra -
Manufacturing facilities -
US - 04
UK - 02
Canada - 01
India - 10 ( including R&D site )
Total employee count - 6200
Industry trends -
CDMO - industry snapshot - grew at 7 pc CAGR from 2016 - 21 from $100 billion to $135 billion. Did outgrow global Pharma Industry growth of 4 odd pc during this period. Likely to be a $ 180 billion + industry by 2026
The trend of outsourcing the development and manufacturing is gaining traction by the day. Its a win win for Innovators and their CDMO partners
Compex Generics ( difficult to make APIs, routes of administration, complex - drug + device combo ) Mkt snap shot -
Mkt currently valued at $ 70 billion, grew by 12 pc CAGR from 2017-22. Likely to be a & 120 billion plus industry by 2026. Complexity in manufacturing and capital intensity are key entry barriers here
Among complex generics, complex hospital generics form the bulk of the Mkt with share of 70-80 pc
Cumulative size of - Sevoflurane, Isoflurane, Desflurane and halothane is aprox $ 1.09 billion with sevoflurane constituting 84 pc of the Mkt
Due high capital intensity, requirements of backward integration, difficulty in making devices like vaporisers etc - competition is limited. AbbVie, Baxter, PPL and Lunan are the only players in the Mkt at present
Intrathecal therapy - gaining traction in recent years. Two popular products are - Morphine Sulphate, Baclofen. Baclofen’s Mkt size in US in 2022 was aprox $ 33 million
Indian OTC Industry -
Valued at $ 4 billion in FY 22, grew by 8 pc CAGR from 2017-22. Expected to be a $ 7 billion industry by 2026 due increased awareness and affordability
Company’s compliance track record -
04 USFDA inspections in FY 23. 02 inspections with zero observations. Other regulatory bodies also inspected PPL facilities ( like - MHRA, EMEA, Health Canada etc )with no major observations. Company successfully cleared 36 regulatory inspections in last FY
Disc - holding, biased, not SEBI registered