**Piramal Pharma’s Growth Strategy: Focus on CDMO and Complex Hospital Generics**
Piramal Pharma is poised to see its Contract Development and Manufacturing Organization (CDMO) business emerge as a significant margin driver in the near future. Recently, the company launched Chlorpromazine Hydrochloride in the US, marking a notable addition to its portfolio. Despite facing pricing pressures, Piramal Pharma reported a 14% year-on-year growth in its complex hospital generics segment, primarily fueled by robust sales in inhalation anaesthesia.
Nandini Piramal, the chairperson, highlighted the company’s strong foothold in the inhaled anaesthetic generics market in the US and emerging markets. She indicated plans to broaden the injectable pipeline to further stimulate growth. The recent launch of Chlorpromazine Hydrochloride, an injectable for treating psychiatric disorders, adds to the company’s offerings, which also include Edaravone injection for amyotrophic lateral sclerosis (ALS) and new concentrations of Zinc Sulfate for injection.
Piramal noted that while growth is expected in inhalation anaesthetics and injectable pain management products, the focus remains on expanding the complex injectables portfolio. The company plans to introduce products at various stages of development, including both licensed projects and those already launched.
In the third quarter, Piramal Pharma’s complex hospital generics business generated ₹654 crore in revenue, driven by strong sales in inhalation anaesthesia. The company holds a dominant position in the US market, being the largest seller of Sevoflurane, with over 40% market share, and over 70% market share for Intrathecal Baclofen, a muscle relaxant. Sevoflurane, known for its potency and rapid action, constitutes about 80% of the global inhalation anaesthesia market.
Despite pricing challenges, the company’s hospital generics segment remains attractive due to limited competition and differentiated distribution channels, offering margins of 25-30%. With increased capacity for Sevoflurane production in India and ongoing injectable product launches, analysts project an 11% compound annual growth rate for this segment from FY24 to FY27.
