Striding Towards Success
In 2018-19, the company realigned its priorities in order to maximise growth while continuing to focus on its operational efficiencies
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Bangalore-headquartered and 1990-incorporated Strides Pharma & Science (formerly Strides Shasun) is today at the forefront of development of pharmaceutical products in the country. It caters to regulated and emerging markets from its seven manufacturing facilities including four USFDA approved ones, and a dedicated R&D facility.
The small-cap company boasts global filing capabilities and a strong footprint across 100 countries. The R&D team in Bangalore focuses on development of a variety of novel dosage forms. “Our continued R&D momentum is resulting in a significant build-out of the portfolio for global markets,” says Arun Kumar, Founder and CEO, Strides Pharma Science.
In 2019, Strides Pharma merged with Arrow Remedies, Fagris Medica, Strides Emerging Markets besides acquiring Vensun, Pharmapar and Vivimed. In 2019, Strides also successfully closed the long-pending international arbitration with Mylan, which resulted in a cash inflow of about $42 million (Rs 294 crore).
The beginning of 2018 was challenging for Shasun after a poor performance in 2017-18 and on account of changing industry landscape across key pharmaceutical markets. “However, we continued to be resilient and delivered an improved overall performance, while at the same time strengthened our fundamentals across our businesses,” says Kumar.
The revenue grew 6 per cent from Rs 2,857.8 crore in FY2017-18 to Rs 3,026.4 crore in FY 2018-19, resulting in growing scale in existing regulated markets and entry into emerging regulated geographies. The EBITDA grew 7 per cent, from Rs 436.9 crore in FY 2017-18 to Rs 469.5 crore in FY 2018-19 with a stable 15.5 per cent margin. The adjusted net profit stood at Rs 106.7 crore. “We continued to be resilient and delivered an improved overall performance in FY 2018-19, while at the same time strengthened our fundamentals across our businesses,” says Kumar.
In existing regulated markets, the grew 21 per cent over FY2017-18 when gross revenue stood at Rs 2,032.5 crore and rose to Rs 2,453 crore in FY19. Globally, the company’s regulated markets are projected to report a 3-6 per cent CAGR during 2019-23, reaching an estimated value of Rs 6,300 crore-Rs 7,140 crore. Strides is rapidly expanding in the US and other regulated markets to consistently grow the revenue share across these regions.
The company has hived off the over-the-counter consumer health care (CHC) business. During FY2018-19, they partnered with ICP-III Investment Advisors to fund the nascent CHC business. ICP is infusing Rs 140 crore for growth. Currently, the CHC business operates key brands in the US, India and other geographies globally.
Shasun big focus is now on development and manufacture of IP-led niche finished dosage formulations. It is also among the world’s largest manufacturers of soft gelatin capsules. In 2019 they claimed to have filed 21 abbreviated new drug applications (ANDA) applications.