- With the help of our R&D capabilities, we now have 1380 product registrations in different markets of the world and over 1029 more are waiting in pipeline. Our R&D facility at ‘Advent’, Mumbai, which is approved by Department of Scientific and Industrial Research (DSIR), Ministry of Science & Technology, Government of India, is being expanded which will ensure consistent growth for the organisation in the coming years.
- Realising its need and importance in the pharma value chain, we at Ajanta Pharma have recently set up a state-of-the-art API facility at Waluj, Aurangabad. This plant is equipped to produce different scale of volumes right from laboratory to pilot to commercial level. This enables us to carry out innovations in both product quality and cost. With this addition, we have mapped the complete pharma value chain and are able to create a class apart in healthcare. Addition of this component of pharma value chain will accelerate our growth in the coming years.
- We have identified our key strength as a niche pharmaceutical formulation provider, in diverse dosage forms, most suitable to the complex patient needs. Over the years, we have strengthened our formulation manufacturing capabilities, which is, yet another important component of the pharma value chain. During the year, we acquired a formulation manufacturing facility near Aurangabad to cater to rest of the world markets. With this acquisition, we now have independent facilities catering to specific markets/segments.
- R&D remains the prime focus of your company, with facility at Advent in Mumbai being further expanded to meet the growing needs of different markets.
- During the last financial year,company acquired a formulation facility near Aurangabad to augment its manufacturing capabiliities, specially for rest of the world markets. The API manufacturing facility also commenced its operation during the year, marking a major step in the direction of mapping the complete value chain.
Delivered Sales of 498 crores & PAT of 51 crores in FY 11
- Consolidated revenue exceeding Rs.500crs. for financial year 2010- 11 is a landmark in the history of Ajanta Pharma. With a modest beginning of a new transformed era in FY 2001-02, we have been able to scale newer heights year on year, consistently, adding value at every stage of our growth, with Compounded Annual Growth Rate (CAGR) of 21% for the last 10 years. Best part of this growth was that we were able to make our revenues more stable, sure and sustainable, resulting in company “SCALING NEW HEIGHTS” year after year. We are committed to continue this momentum in coming years and are poised for further “SCALING NEW HEIGHTS”.
- We are proud to announce commencing of new enlarged “Advent”, our dedicated R&D centre, during the year, with more than 30000 sq. ft. of space, best of the equipments and a very enthusiastic and committed team of over 200 qualified doctors, scientists, technicians and other trained staff. This ensures continued growth for the company and enables us to maintain the pace of “SCALING NEW HEIGHTS” year after year.
- During the year we launched 23 new products in different therapeutic segments, out of which 12 were ‘first of its kind’ in the country. All the products, developed by the in house R&D team, were unique, providing the much needed relief to the ailing patients.
- Earlier we have led 2 ANDAs and we hope to get the approval during FY 2011-12, which will open for Ajanta Pharma the world’s biggest pharma market – USA. With more ANDA filings planned in coming years, our growth momentum will see a major upside ensuring our “SCALING NEW HEIGHTS”.
- Our biggest strength is the team of 3000+ Ajantaites spread across the world, who untiringly work towards the single goal of “SCALING NEW HEIGHTS”. The team has grown more than 50% during last one year and is still growing. This strong team of dedicated and experienced professionals stand for highest ethical standards.
- We look forward to scaling new heights in the coming years, taking full advantage of the opportunities offered by the market. We are now expanding in more speciality areas which will enable us to serve more patients, creating convenience and compliance for them.
- Exports continued to lead with its contribution of 63% and domestic business joining it to keep the growth momentum going. The benefit of mapping the complete pharma value chain during the previous year had shown its result in terms of overall improvement in the operations of the company.
- With the completion of new Advent, our R&D centre expansion and Paithan plant expansion, the company has completed all its major Capex plans during the year. Normal capital expenditure will continue in the coming years till we plan new grass root facility.
Delivered Sales of 677 crores and PAT of 77 crores in FY 2012
- We are moving ahead, making progress, steadily, with a strong determination, to have stronger & wider foundation leading to continued growth for the organization. And it is in every direction, improving ranking in domestic market, enhancing depth in export markets, increasing thrust on R&D, investment in new manufacturing facilities, empowering the team to excel and bringing financial efficiencies, to make our growth sure, scalable and sustainable.
- We serve the domestic market with specialty segments of Ophthalmology, Dermatology, Cardiology, Orthopedics, ENT and Gastroenterology. And in each of these segments, we enjoy leadership in sub-therapeutic segments through product innovations. This has enabled us to continue better performance year after year, with growth above segment average and improved ranking. We continue to launch new products in the market in different therapeutic segments and during the year the new product launches were 25 out of which 13 were first time in the country.
- Export contributes more than 60% of the company’s revenue from emerging markets of Asia, Middle East, Africa and Latin America. The customized product basket for each country catering to its unique requirements helps us in taking leadership position in different sub-therapeutic segments in these markets. With a view to increasing depth in geographies, we were preparing ourselves during past few years to enter regulated markets, by getting one of our manufacturing facilities approved by USFDA and simultaneously filing ANDAs. We have 2 ANDA approvals from USFDA with another 7 awaiting approval. Our first product will be launched in the US market in first quarter of next financial year. With this we will have presence in world’s largest pharma market, which will place us among the few elite pharma companies in the country having presence in the regulated markets.
- With consistent growth in coming years and our own manufacturing capacities peaking in next 2 years, we have to prepare for growth requirements 2 years down the line. Hence, we need to build our own capacities immediately and we have started taking steps in that direction. We have planned two separate manufacturing facilities – one for regulated markets & another for domestic & emerging export markets. These projects will have latest state of art equipments providing highest quality pharma products and will be completed in 24 months. An investment of around Rs.400 crores is envisaged for this purpose and we will raise new debt for funding this capex, apart from using our own internal accruals.
- We have an improved EBITDA margin in-spite of higher spending on R&D. All the financial ratios are pointing towards the financial efficiency we are able to bring in across the organization.
- Ajanta Pharma has displayed unprecedented growth amongst its close competitors in all segments where it has a presence.
Delivered Sales of 931 crores and PAT of 112 crores in FY 2013
- While we have been posting sound performances year after year, we have also been working on laying the foundation for delivering consistent growth in future as well. And this year was no exception.
- We have been consistently taking measures on an on-going basis which will ensure that we continue to post above industry average growth in future as well. every waking hour, we strive to build a robust, sustainable and scalable quality business. We see a bright tomorrow, a tomorrow that is part of our today’s dream.
- It’s been a decade since Ajanta Pharma took its first baby steps in the Domestic Prescription Market. From there, we took our accomplishments a step further by venturing exclusively into Speciality Segments. today, we find that one of the major components of our business lies in our home base – India; one of the fastest growing pharmaceutical markets in the world. Our focus on the Speciality Segments of ophthalmology, Dermatology and Cardiology in the Domestic Market has enabled us to further enhance our market share; taking our all India rank from 50th last year to 45th as per IMS MAt March ’13. We today enjoy an enviable position in all three of the speciality therapeutic segments with improved rankings, gaining market share and leadership for some of our products. Our immense capability to launch new products, few of them being first-to-market, has been our foundation for success throughout these years and will continue to be so in the coming years.
- When it comes to envisaging our path, we firmly believe that big dreams give forth to even bigger accomplishments. And, it is precisely this belief which has enabled us to achieve consistent growth in the emerging markets and also build a strong foundation for future growth. Currently, emerging markets account for about 65% of our business.
- Ajanta Pharma has embarked on yet another progress path having made a move towards augmenting manufacturing capacities for emerging and Domestic Markets by setting up an additional facility at GIDC Savli in Gujarat. our new plant is expected to be operational during Fy14-15, which will be capable of meeting our future demand.
- Another 12 ANDAs, including 5 filed during financial year 2012-13, are under approval from USFDA. these approvals, expected in coming years, will enable us to achieve continued growth. And to continue our preparation for growth, we plan to file 6 to 8 ANDAs every year, building a differentiated product pipeline encompassing niche opportunities.
- One of our oral solid dosage manufacturing facilities has the approval from both USFDA and uK MHrA. our preparation for augmenting capacities for regulated markets is taking shape at Dahej SeZ in Gujarat for meeting the above requirement. With the new plant slated for operations during Fy 2014-15, we will be ready “For Future” in terms of our manufacturing capabilities for regulated Markets.
- Our preparations have begun “For Future”, in the form of two new manufacturing facilities – one for regulated markets and other for domestic and emerging markets. these facilities are expected to be up and running during Fy 2014-15. Addition of these two new facilities, coupled with our existing facilities, will make sure that we sustain our growth in coming years without any capacity constraints.
- The strong, dedicated and committed team of over 4,000 Ajantaites spread across the globe today are ever ready to face new challenges and emerge triumphant in everything we, as a global organisation, aspire to achieve “For Future”.
- Growth in Domestic Market is expected to remain subdued in Fy14 owing to new pricing policy and other factors. Within therapies, though anti-infective and respiratory got impacted because of a healthy season, growth in the Chronic segment also factored in at a single digit figure. this year, Ajanta Pharma has displayed growth substantially above the industry average. our focus on speciality segments has allowed us to maintain the pace of growth during Fy13
Delivered Sales of 1208 crores and PAT of 234 crores in FY 2014
- Grew market capitalisation from Rs. 235 crore in March 2011 to Rs. 3,497 crore in March 2014.
- There are number of routes for growing one’s presence in the competitive Indian pharmaceutical sector. At Ajanta pharma Limited, we have selected to pursue a differentiated strategy. this is marked by the manufacture of value-added products in niche therapeutic spaces addressing unmet patient needs.
- FOR YEARS, CONVENTIONAL WISDOM DICTATED THAT COMPANIES MANUFACTURE FRONT-END PRODUCTS AND THEIR CORRESPONDING RAW MATERIALS AS WELL, LEADING TO ENHANCED VALUE-ADDITION. AJANTA PHARMA SELECTED TO THINK LATERALLY INSTEAD. We focused singularly on manufacturing and marketing branded generic formulations for the following reasons: It enabled us to offer a customised product portfolio in each of our markets, in line with our emphasis on empathy, which is a part of our mission statement; We recognised that being patient- focused reinforced our insightinto unmet needs, leading to corresponding product development; We recognised that a formulations focus would translate into enhanced margins, ensuring sustainable growth; The result: Our topline growth of 30% CAGR over the last five years, with a bottomline growth of 62% CAGR during the period, vindicated our lateral approach.
- 119 first-time products were launched by Ajanta in India during the last nine years.
- At Ajanta Pharma, we are enthused by the prospect of running an innovative (and hence profitable) company within our pharmaceutical space, not necessarily the fastest. At Ajanta Pharma, we are about competing around knowledge and not on the basis of a narrow price arbitrage.
- Material costs saw a sharp decline to 29% in 2013-14 against 33% in 2012-13, a result of enhanced economies-of-scale, procedural improvements and better negotiation.
- People-related expenses increased from Rs. 123.18 crore in 2012-13 to Rs. 156.97 crore in 2013-14. This increase was due to the growing team size, annual wage/salary increase, performance incentives and other statutory employee-related provisions. The increase in employee cost was more than compensated by people productivity – the average revenue per employee increased by 9% from Rs. 23 lac in 2012-13 to Rs. 25 lac in 2013-14.
Delivered Sales of 1474 crores and PAT of 310 crores in FY 2015
- Ajanta Pharma has established itself as one of India’s fastest growing pharmaceutical companies having presence in India, Emerging markets and USA. The unprecedented growth during last decade is the result of our doing the Right Things at the Right Time.
- Understanding the market, applying science with commitment and the passion to deliver the best cures are inherently present in our DNA. We have over 1,400 products registered currently, and over 1,600 products are waiting for approval in various countries.
- We expect a healthy future because of a strong R&D pipeline. Our new products like Wrinclar, an anti-wrinkle cream that works at molecular level to wipe off wrinkles, and Ketriplin C-efficiently treats Diabetic Peripheral Neuropathy, are breakthrough innovations that we brought into India in 2014 -15. We are exploring growth opportunities in pain management and aim to make many more breakthroughs in the years ahead.
- At Ajanta, we are strengthening our Research and Development (R&D) efforts to develop innovative solutions for patients around the world. At the same time, our manufacturing and distribution capabilities are also being ramped up. We are investing in the right capabilities to sustain our competitive advantage globally.
- We are enhancing our manufacturing facilities at right time. Along with rigorous expansion at existing facilities, we are building new facilities to meet our growth requirements in coming years. One facility at Dahej is ready and other is on the drawing board already.
- A robust product pipeline, with 1,440 products under registration will drive growth in the pharmerging markets. As these products are launched, Ajanta’s position in these key markets is expected to strengthen.
- Ajanta continues to scale up R&D facilities by adding resources and enhancing capacities and capabilities to meet growing demand. The Company plans to invest Rs. 80 Crore during the next 2 years to enhance/upgrade facilities of R&D centre in terms of space and equipment to support the research activities for continued growth. It intends to develop cost-effective formulations for the ever expanding consumer base and continue developing first time products.
- Material costs declined to 25% in 2014-15 against 29% in 2013-14. This reduction is on account of growth in quality business with niche and first time product launches. People-related expenses increased from Rs 156.97 Crore in 2013-14 to Rs. 200.58 Crore in 2014-15. This increase was due to additional manpower recruited in marketing, R&D and other support functions.
- The Dahej facility has been specially constructed for catering to the requirements of markets like USA, WHO and Emerging Markets with a total investment of about Rs. 220 Crore. It has world class standard, employing latest technology and state of the art machinery complying with USFDA / UKMHRA / WHO standards. This new facility has capacities to manufacture annually 1,740 Million Tablets, 216 Million Capsules and 150 Million Powder sachets. The facility will start taking validation batches in next few months.
Delivered Sales of 1749 crores and PAT of 416 crores in FY 2016
- In FY 2016, we demonstrated a continuity of our vision, and several steps towards realising its potential. Growing our branded generic business in India and emerging markets with customised product portfolio. Stepped up our presence in USA market with 4 more product launches. Increased R&D and innovation initiatives, with higher spend of 6% of revenue against 5% last year, in order to enhance our differentiated product portfolio in both domestic and international market.
- FY 2016 has been another successful year in terms of all the parameters. Despite challenges of currency volatility and scarcity in emerging markets, we have posted overall satisfactory growth.
- We stepped up our presence in the USA market with a select product portfolio. We have 26 Abbreviated New Drug Applications (ANDAs), out of which we received 8 final approvals (5 already commercialised) and 2 tentative approvals. That currently leaves us with 16 ANDAs awaiting approval and we plan to file 8-12 ANDAs every year going forward.
- Our Dahej manufacturing facility, mainly dedicated for developed markets, will be operational in FY 2018. A new formulations facility being set up at Guwahati with a capex of over Rs. 300 crore, to cater to India and emerging markets will be commercialised before March 2017, which will enable us to build our strength in manufacturing and get more tax efficient.
- Ajanta Pharma today is a 6,000+ strong team. We are nurturing and up-skilling our human capital to prepare for the next level of growth. We have further strengthened our management team with people having an established track record in the industry. Its only through consistent improvement and empowerment of our people that we will be able to sustain our leadership in our focus areas.
- As we look ahead, we have set clear goals for our next level of growth. In the medium term, building on proven results, we will potentially gain from our prudently developed product portfolio, long-standing stakeholder relationships and a diverse consumer mix.
- Our clear vision to remain focused on few high growth specialty therapeutic segments in India was clearly executed in terms of building leadership in cardiology, dermatology, ophthalmology and pain management.
Delivered Sales of 1983 crores and PAT of 507 crores in FY 2017
- Our USA success in the current year, was, for instance, the outcome of a plan laid down in FY 2010 to be a meaningful player in that market. We introduced seven new products including two successful day one launches in USA in FY 2017 and more launches are planned in FY 2018. Our precise preparation allowed us to file eight more ANDAs with the US FDA and we are ready for 12-15 filings in the ensuing year. This demonstrates a strong product pipeline that can be monetised on approval and a validation of our R&D efforts.
- We plan to remain focused on few high-growth specialty therapeutic segments in India and enhance leadership in cardiology, dermatology, ophthalmology, and pain management. Aggressive launches and improving research productivity has led to superior growth. During FY 2017, we have launched 25+ products in India, which will further propel the growth in coming years. A strong pipeline of products is in the offing, in line with our strategy of Plan, Prepare and Perform.
- We have established a strong presence in rest of Asia and Africa, in branded generics business. Our major segments are anti-malaria, anti- bacterial, cardiovascular, orthopaedic, gynaecology, and paediatric, among others. With 700+ medical representatives on the field, we have formidable presence in these markets. We continue to launch more products and strengthen marketing teams to invigorate the market in coming years. With these measures and stability in the economic scenario, we expect to regain growth momentum in the branded generics business over the medium term.
- Our growth aspirations have inspired our presence to large and complex marketplaces that provide profitable opportunities. We have focused on creating a presence in the USA, the world’s largest pharmaceuticals marketplace by selecting niche and complex products in the oral solid space. We have filed 34 Abbreviated New Drug Applications (ANDAs), of which we have received 17 final approvals and two tentative approvals. We are awaiting approvals for 15 ANDAs and plan to file 12-15 ANDAs in FY 2018 with the US FDA. During FY 2017, we accomplished 2 day one launches, which confirms our strategy of Plan, Prepare and Perform.
- In USA, with around $100 billion worth patent expiries over the next five years, generic business has a significant growth potential.
- The exports grew at 12% during FY 2017 driven by strong growth in the USA market. During the year, company received 9 ANDA approvals and launched 7 more products in the USA market, with 2 products being day 1 launch. The strategy of the company of diversifying in different markets has helped it to maintain the growth momentum even after a subdued growth in Africa and negative growth in Asia. The Emerging markets got impacted due to currency devaluation and restriction across Asia and Africa.
- Research & Development (R&D) represents the cornerstone of innovation at Ajanta Pharma. R&D has played a vital role in the Company’s sustained growth for the last decade. A team of 800+ well qualified and experienced professionals, specialised across the value chain of pharmaceutical research, are responsible for creating a strong product pipeline for different markets. R&D facilities comply with international standards and are well equipped with excellent infrastructure supported by best-in-class manpower.
Delivered Sales of 2126 crores and PAT of 469 crores in FY 2018
- In spite of challenging macro environment in FY 2018, we passionately launched new products, advanced our product pipeline, pursued innovation, enhanced our manufacturing capabilities with improved technologies and made a real difference to the lives of people. In India, we improved our industry ranking by staying ahead in majority of the therapeutic segments of our presence. We are happy to state that the market slowdown on account of transition to Goods & Services Tax (GST) regime and the lingering after-effects of demonetisation have now petered out, and the industry is on recovery. With our strong portfolio of brands, including a significant number of first-to-market launches, we believe we are well-positioned to reap the benefits of the upswing.
- Our most impressive performance has been in the branded generic segment of emerging markets, where launch of several differentiated products and enhanced marketing efforts have enabled us to achieve stellar growth. This is reflected in our improved ranking in some of the markets and retaining our stance in a few others. With the currency stability expected to continue in key emerging economies, we are confident of further strengthening our market position. However, Africa institutional business saw a de-growth in FY 2018, and impacted the overall growth of the Company.
- In the USA, the market environment has been challenging because of pricing pressure due to buyers’ consolidation. Driven by new launches and seamless execution, we have weathered the headwinds satisfactorily which is reflected in our year-on-year growth. Our focus remains on maintaining a robust product pipeline through increased filing of ANDAs as well as quicker launches.
- With an impressive global footprint and a diversified product portfolio, we now have the most diversified revenue stream in our Company’s history. We continue our journey of excellence by investing in our growth drivers that will steer tomorrow’s success.
- In India, in line with our pursuit of excellence with differentiated product development approach, we launched 32 products in domestic formulations in FY 2018, of which 7 enjoyed first-to-market advantage. While our new products have been very well received, our existing portfolio of leading brands also continue to grow its market share. Going forward, we will continue to focus on specialty segments to enhance our market position and further improve the productivity of our field force ensuring continued growth.
- FY 2018 was a challenging year in the US market with buyer consolidation and increasing competition leading to sharp price erosion. Even against such challenging backdrop, Ajanta Pharma demonstrated resilient performance on the back of 6 new product launches in FY 2018. Our basket has now grown to 18 products on the shelf in USA, with 21 more product filing awaiting approvals. Looking at the changed scenario in the US market, we have already started rationalising our R&D efforts and narrowed down our product selection for this market. We are committed to be in this market and grow with our strength of sharper focus, better compliance and a dedicated team on the ground.
- We have been a strong player in the institutional anti-malaria business for Artemether Lumefantrine combination over the past five years, being the 1st generic company to get pre-qualification for this product from WHO. However, in FY 2018, reduction in overall allocation by the buyers have impacted our revenue from institutional sales which declined by 13% on a year-on- year basis. Going forward, we expect the allocation by the buyers to reduce sharply. Hence, we will enhance our focus on branded generic business to fill the gap arising from institutional business.
- With current R&D spend at 9% of the total turnover, we have a rich pipeline of new products under active development.
- Ajanta Pharma’s India business continued to perform well steered by strong focus on high growth speciality segments. While roll-out of the GST impacted operations across the industry, the Company’s readiness enabled it to transition seamlessly to the new tax regime. As per IMS MAT March 2018, the Company grew at par with Indian Pharmaceutical Market (IPM) at 6%. Within the speciality segments that the Company operates in, except for Dermatology all segments recorded higher than industry growth. Corrective measures have been taken, and the Company is optimistic about reviving growth in the Dermatology segment. The Company continues to strengthen product portfolio through new launches, many of them being first-to-market products offering significant patient benefits. Apart from new launches, many of the Company’s existing products continue to grow their market share.