Supriya Lifescience, a Mumbai-based active pharmaceutical ingredient (API) maker, is planning to double its revenue in the next three years. The company’s whole-time director, Saloni Wagh, mentioned that they are expanding their product basket by adding six to seven molecules targeting anti-anxiety, anesthesia, and anti-diabetes. They are also diversifying into contract development and manufacturing organization (CDMO) services, which can potentially boost their margins by four to five percentage points. Wagh expressed confidence in surpassing the current Ebitda margins of 28-30% once the new products are stable and have entered more regulated markets.
The company reported revenue of ₹460 crore for the financial year 2022-23, maintaining 28-30% Ebitda margins on an annualized basis. To achieve their revenue target, Supriya Lifescience is investing in research and development (R&D) to build a pipeline of new molecules. They are also preparing to enter new and highly regulated markets while actively seeking contract development and manufacturing opportunities.
Wagh revealed that the company has already submitted filings in the US and Europe for eight to ten products from their existing portfolio. Additionally, many of their top-selling APIs, including chlorpheniramine maleate, ketamine hydrochloride, and salbutamol sulphate, are backward integrated up to the level of intermediates or key starting materials. This backward integration helps them mitigate price and supply chain volatility.
While their top 12 products contribute to more than two-thirds of total revenues, some are facing pricing pressure due to competition. The addition of contract development and marketing (CDMO) capabilities is expected to fuel the company’s growth, with Wagh projecting this segment to contribute ₹100-120 crore to the revenue in the next two to three years.
Supriya Lifescience is allocating a capital expenditure of about ₹100 crore for its expansion plans, mostly funded by internal accruals and ₹200 crore capital raised through an initial public offering (IPO) in December 2021. The company is also building two new research and development centers, one for product lifecycle management and the other with a pilot plant for new molecules and contract development and marketing, further supporting their growth strategy.
In conclusion, Supriya Lifescience is focused on expanding their revenue by doubling it in the next three years. They plan to achieve this by adding new molecules to their product basket and diversifying into CDMO services. By targeting regulated markets and investing in R&D, the company aims to improve their Ebitda margins and secure growth opportunities. With their ongoing expansion plans and a strong portfolio of backward-integrated APIs, Supriya Lifescience is well-positioned for further success in the pharmaceutical industry.
