In Short:
Piramal Pharma aims for $2 billion in revenues by 2030, focusing on contract development and manufacturing (CDMO), complex hospital generics, and consumer healthcare. Chairperson Nandini Piramal highlighted CDMO’s 58% revenue share and anticipated growth from increased RFPs due to changing biotech funding. The company plans to enhance its services while reducing net debt from ₹4,000 crore. Recent shares rose by 5.21%.
**Piramal Pharma Sets Sights on $2 Billion Revenue by 2030**
In an exciting new chapter, **Piramal Pharma** is aiming to reach a remarkable revenue milestone of **$2 billion** by the year 2030. The growth strategy will hinge on three pivotal segments: **contract development and manufacturing (CDMO)**, **complex hospital generics**, and **consumer healthcare**.
**Visionary Plans from Nandini Piramal**
During a recent briefing, **Chairperson Nandini Piramal** shared ambitious goals for the company. She revealed aspirations to **double revenues** and **triple EBIDTA** to an impressive **25%**. A critical strength identified in their roadmap is the company’s unique ability to cater to customers on both sides of the globe, making a significant mark in the CDMO arena, particularly without relying on **China**. The CDMO sector alone constitutes a whopping **58%** of the company’s revenue, and this ratio is expected to remain stable as they look ahead.
**Positive Outlook on Request for Proposals**
As of March 31, 2024, the company reported revenues of **₹8,171 crore** (equating to about **$987 million**). In light of the upcoming **US Biosecure Act**—pending approval from the **US Senate**—the company has experienced a notable surge in **Requests for Proposals (RFPs)** recently. This uptick could be linked to evolving funding trends among biotech firms that tend to outsource their projects, Nandini noted. However, she emphasized that the company’s current growth plans do not lean on anticipated opportunities stemming from the Act’s potential passage, which aims to limit interactions between US firms and certain **Chinese biotech companies**.
**Revenue Projections and Strategic Growth**
Piramal Pharma’s forecasts paint an optimistic picture: the CDMO sector is projected to soar to **$1.2 billion** with a robust **25% EBIDTA margin** by 2030. Meanwhile, **complex hospital generics** are estimated to bring in **$600 million** in revenue, also holding a target of **25% EBIDTA margins**, and the **consumer healthcare** segment is set to achieve **$200 million** with promising double-digit EBIDTA margins. Furthermore, the company aims to trim its net debt from the current **₹4,000 crore**.
**Driving Forces Behind Growth**
The anticipated growth in the **CDMO** arena will be fueled by their expansion into differentiated services and projects involving on-patent molecules. Shifting gears, the **complex hospital generics** will pivot towards specialty and differentiated products, while the **consumer healthcare** division will zero in on powerful brands and innovative new offerings.
**Market Response**
The market responded favorably on Wednesday, with **Piramal Pharma** shares climbing by **5.21%** to reach **₹228** by 2:15 PM.
