“We are very much sure we should be growing (domestic formulation business) around 300 basis points better than the market (growth) in India with the portfolio,” Chopra said.
He added that the growth forecast is based on existing business, and any acquisition will be accretive. Chopra said the contract development and manufacturing organisation (CDMO) business which contributes 13% of total revenue is expected to see growth revving up from second half of FY25 led by new order inflows from Europe, US, and entries into new geographies like Brazil and Mexico. JB Pharma is one of the world’s leading producers of lozenges.
“I am projecting the $50-million business to grow to $100 million if all these plans in place now work out. We have capacity, we have partners, we have new products, some of our melatonin (used in treating insomnia) based combinations will start seeing the light probably at the end of this year; we are very bullish on that business,” Chopra said.
For FY24, JB Pharma posted its highest ever financial numbers. The Mumbai-based company’s revenue grew 11% YoY to Rs 3,484 crore. The Ebitda margin grew 330 basis points YoY to 27%, while profit after tax grew 35% YoY to Rs 553 crore. Chopra said India and CDMO should constitute around 75-80% of total revenue in 2-3 years.Domestic (54%) and CDMO (13%) constitute 67% of total revenue in FY24. JB Pharma is also lining up new product registrations and launches in Sub-Saharan Africa, Latin America, Southeast Asia and Middle East regions. Chopra said the results of commercialisation will be seen in FY26.Chopra, earlier a veteran at Cipla heading domestic formulation business, was roped in by KKR in October 2020 to helm JB Pharma. Chopra has put the Mumbai-based drugmaker on an accelerated growth path by putting in place a fresh go-to-market strategy with therapy diversification, raising MR productivity, making big brands bigger, focusing on chronic therapies, and acquisitions of brands and portfolios.
Under his watch, JB Pharma has completed four acquisitions investing $200 million.
The company signed an agreement in December last year with Swiss multinational giant Novartis to acquire a portfolio of 15 ophthalmology drugs for Rs 964 crore. The acquisition will take effect from January 2027.
