Investment Rationale
The domestic formulations business, the second largest contributor to the consolidated revenues (36% of total sales), continued to register impressive performance with a CAGR of 12% over FY13-17 on the back of company’s strategy to identify potential brands in growing therapeutic segments and scientific product promotion among doctors. Further, with an objective to grow the business at a faster pace, the company has strengthened its workforce by adding over 600 medical representatives. New product launches, increased government and private spending on healthcare and company’s continued focus on growing therapeutic segments like anti-hypertensive, anti-peptic ulcerant, pain management, anti-infective and gastrointestinal bodes well for the growth. Hence, we expect domestic formulation business to grow at a CAGR of 11% over FY17-19E.
J.B. Chemicals & Pharmaceuticals Ltd. : Company Overview
J.B. Chemicals & Pharmaceuticals Ltd (JBCPL) is India’s leading pharmaceutical company that manufactures & markets a range of innovative specialty products that include various pharmaceutical dosage forms like tablets, injectable (vials, ampoules, form fill seal), creams & ointments, lozenges, herbal liquids and capsules. The Company is engaged in one segment viz. pharmaceuticals. It is an integrated, research-oriented company that exports to many countries globally.
It has a worldwide presence spread over 50 countries across Asia and South-East Asia, Gulf & Middle East, USA, EU, Canada, Australia, New Zealand, Latin & Central America, Africa & South Africa and Russia-CIS. The company has nine manufacturing facilities across Ankleshwar, Panoli & Daman and 27 distribution locations across the country. With a strong R&D set-up for development of new drug delivery system and formulations, JBCPL continues to invest in growing its share in the regulated markets in USA, Europe and Australia.
