Industry Profile: India is the largest provider of generic drugs globally. Indian pharmaceutical sector industry supplies over 50 percent of global demand for various vaccines, 40 percent of the generic market in the US, and 25 percent of all medications in the UK.
India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers who have the potential to steer the industry ahead to an even higher level. Over 80 percent of the antiretroviral drugs used globally to combat AIDS (Acquired Immuno Deficiency Syndrome) are supplied by Indian pharmaceutical firms. The pharmaceutical sector was valued at US$ 33 billion in 2017. The country’s pharmaceutical industry is expected to expand at a CAGR of 22.4 percent over 2015–20 to reach US$ 55 billion. India’s pharmaceutical exports stood at US$ 17.27 billion in 2017-18 and are expected to reach US$ 20 billion by 2020. Indian companies received 304 Abbreviated New Drug Application (ANDA) approvals from the US Food and Drug Administration (USFDA) in 2017. The country accounts for around 30 percent (by volume) and about 10 percent (value) in the US$ 70-80 billion US generics market. India’s biotechnology industry comprising bio-pharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics is expected to grow at an average growth rate of around 30 percent a year and reach US$ 100 billion by 2025. Biopharma, comprising vaccines, therapeutics, and diagnostics, is the largest sub-sector contributing nearly 62 percent of the total revenues at Rs 12,600 crore (US$ 1.89 billion).
Company Profile: Jubilant Ingrevia science is a part of the Jubilant Bhartia group. The company has two segments, life science and Pharma. Life science business comprised Advanced Intermediates & Nutritional Products, including Vitamines, Animal Nutrition, Ethanol, Specialty Ingredients & Life Science Chemicals, Fine Ingredients (Pharma & Others), Crop Science Ingredients, Life Science Chemicals (Acetyls), and External Manufacturing. Pharma business represents Generics, Active Pharmaceutical Ingredients, Solid Dosage Formulations, Specialty Pharmaceuticals (Sterile Products), CMO Sterile Injectable, Allergy Therapy Products, Radiopharmaceuticals, Drug Discovery Solutions (DDS) and Indian branded Pharma business. In addition, the company has five plants for life science Business in Gajraula, Uttar Pradesh, Bharuch, Samlaya Gujarat, and Nira, and Ambarnath in Maharashtra. Two plants in India business and three offshore.
Shareholding pattern: BSE Data.
Financials and Ratios: [table id=179 /]
Future Prospects: The company is a product of a demerger of jubilant life. This is a business of life science. Jubilant pharmova is a business of Pharma.
The company has one subsidiary in Singapore. The expected Valuation of the subsidiary is the same as the company’s market cap. But the plan was delayed. The company also gets permission to export from China. Management talked about doubling the generic business in the US in the next three years. The company received approval for 30 Medicine per year on an average. In that way, 20-30% growth is not difficult.
