๐ ๐งตInsights from Laurus Labs Annual Report 2023 ๐
#LaurusLabs
#LaurusLabs
Global Markets:
๐The global growth rate has sharply declined to 1.7% in 2023 due to factors like inflation control measures, weak financial systems, the Russia-Ukraine crisis, geoeconomic fragmentation, and other headwinds affecting emerging markets.
๐The global growth rate has sharply declined to 1.7% in 2023 due to factors like inflation control measures, weak financial systems, the Russia-Ukraine crisis, geoeconomic fragmentation, and other headwinds affecting emerging markets.
India:
๐India has shown remarkable resilience with an average economic growth of around 6.9%. Robust investments, government capex, and increasing private consumption have fueled this growth, making India one of the fastest-growing economies.
๐India has shown remarkable resilience with an average economic growth of around 6.9%. Robust investments, government capex, and increasing private consumption have fueled this growth, making India one of the fastest-growing economies.
๐ The Indian pharmaceutical industry ranks third globally in terms of volume and fourteenth in terms of value. It has exhibited a compound annual growth rate (CAGR) of 8-9% from FY2017 to FY2022.
๐ The industry expects the Indian pharmaceutical market to triple in the next decade, reaching a value of USD 120-130 billion by 2030. This exciting trajectory positions India as a global pharmaceutical manufacturing hub.
๐ India is the world's largest supplier of generic medications, accounting for 20% of the global supply by volume and fulfilling about 60% of the global vaccination demand. Indian drugs are exported to over 200 countries, with the US being a key market.
API Production:
๐งช India is the third-largest producer of active pharmaceutical ingredients (APIs), contributing 8% to the global API industry. With over 500 different APIs manufactured in India, it holds a significant market share and is expected to grow at a CAGR of 13.7%
๐งช India is the third-largest producer of active pharmaceutical ingredients (APIs), contributing 8% to the global API industry. With over 500 different APIs manufactured in India, it holds a significant market share and is expected to grow at a CAGR of 13.7%
Formulations:
๐ India is the largest exporter of formulations in terms of volume, with a 14% market share. Ranked twelfth globally in terms of export value, India's formulations market is poised for double-digit growth over the next five years.
๐ India is the largest exporter of formulations in terms of volume, with a 14% market share. Ranked twelfth globally in terms of export value, India's formulations market is poised for double-digit growth over the next five years.
Challenges Faced:
๐ Supply chain disruptions and repeated lockdowns in China had resulted in rising prices of raw materials
๐APIs have witnessed price increases of 25% to 120%, while excipients and packaging materials have also experienced significant rises.
๐ Supply chain disruptions and repeated lockdowns in China had resulted in rising prices of raw materials
๐APIs have witnessed price increases of 25% to 120%, while excipients and packaging materials have also experienced significant rises.
๐The US market, being the largest for generic drug manufacturing, faces intense competition and pricing pressures due to excessive supply.
๐ Inflation poses a significant concern for the pharmaceutical industry, leading to higher input costs and supply chain disruptions.
๐ Inflation poses a significant concern for the pharmaceutical industry, leading to higher input costs and supply chain disruptions.
๐ Business Performance in FY23:
โข Non-ARV and CDMO segments drove strong growth.
โข Formulation (FDF) revenues declined by 39% due to lower procurement and adverse pricing. However, ARV sales showed signs of recovery.
โข Non-ARV and CDMO segments drove strong growth.
โข Formulation (FDF) revenues declined by 39% due to lower procurement and adverse pricing. However, ARV sales showed signs of recovery.
โข APIs grew by 28%, supported by growing opportunities in high-growth APIs.
โข CDMO-Synthesis segment experienced significant growth of 136%, benefiting from scale execution with big pharma clients and an expanded project pipeline.
โข Bio segment recorded a 25% growth
โข CDMO-Synthesis segment experienced significant growth of 136%, benefiting from scale execution with big pharma clients and an expanded project pipeline.
โข Bio segment recorded a 25% growth
๐ Capacity expansion:
โข Capex of 1000 cr in FY24 โ Majority in CDMO and Biotech
โข FDF segment and increased capacity from 5 billion units to 10 billion units.
โข FY25 will be a year of growth when majority of capex coming online in FY24 will start to generate revenue.
โข Capex of 1000 cr in FY24 โ Majority in CDMO and Biotech
โข FDF segment and increased capacity from 5 billion units to 10 billion units.
โข FY25 will be a year of growth when majority of capex coming online in FY24 will start to generate revenue.
Disclaimer: This is for educational purposes only and not an investment recommendation. Please consult your own Investment Advisor before making any investment decisions.
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