In an interaction with Dr Saloni Wagh, Director of Supriya Lifescience Ltd

Establishing a strong regulatory framework and maintaining compliance with relevant regulations is paramount for success in the pharmaceutical industry, states Dr Saloni Wagh, Director of Supriya Lifescience Ltd.

What factors led to the company achieving such impressive results in Q3FY24, with a remarkable 33 per cent year-on-year rise in revenue and a staggering 213 per cent growth in net profit?

The remarkable Q3FY24 results can be attributed to strategic initiatives that strengthen our market presence. Firstly, our focused approach to regulated markets facilitated better product penetration. Key products, including Vitamins, Anesthetics, and Decongestants, experienced heightened traction, contributing significantly to the impressive 33% YoY rise in revenue.

Moreover, our commitment to de-risking the portfolio played a pivotal role. By expanding into new geographies and diversifying our customer base, we mitigated potential risks and capitalized on emerging opportunities. This holistic approach not only strengthened our position in existing markets but also enabled us to tap into previously untapped segments. The synergy of these factors underscores our commitment to sustainable growth and innovation, reflected in the staggering 213 per cent growth in net profit. Moving forward, we remain dedicated to these strategic pillars, ensuring a robust foundation for continued success in the dynamic business landscape.

The business mix revenue contribution from the European region experienced robust year-on-year growth. What efforts were instrumental in achieving this, and what are the company's future targets for this region?

The robust year-on-year growth in business mix revenue contribution from the Europe region can be attributed to several strategic efforts undertaken by our company. Firstly, Europe inherently serves as a substantial market for the products we manufacture, providing a strong foundation for growth. Additionally, our EU GMP-certified site has played a pivotal role in establishing credibility and ensuring compliance with European quality standards. Furthermore, the multiple CEP registrations we have obtained have significantly contributed to our success in this market, fostering trust among stakeholders.

Looking ahead, we have ambitious plans to further enhance our presence in Europe. Currently, we have 4-5 CEP registrations in the pipeline, which are poised to provide an added boost to our market position. These upcoming registrations reflect our commitment to expanding our product offerings and meeting the evolving demands of the European market.

Our future targets for the region include exploring new partnerships and continuing to uphold the highest standards of quality and compliance. By leveraging our existing strengths and proactively pursuing new opportunities, we aim to sustain and build upon the impressive growth witnessed in the Europe region.

Although the Analgesic/Anesthetic segment accounted for around 50 per cent of the revenue, other segments have experienced a slight decline. How does the company plan to enhance the performance of these other segments?

The performance of our Analgesic/Anesthetic segment, contributing around 50 per cent of revenue, remains robust. While other segments have seen slight declines, it's important to note that therapy performance can fluctuate quarterly. However, the majority of our therapies are showing growth trends. To further enhance the performance of these segments, we have strategic plans in place. We're actively de-risking our portfolio by diversifying and adding new therapies.

Notably, we've recently introduced anti-anxiety/anti-diabetic to broaden our product offerings. This addition aligns with our commitment to meeting diverse medical needs and expanding our market reach. By continually assessing market demands and innovating our product portfolio, we aim to strengthen the performance of all segments, ensuring sustained growth and value for our stakeholders.

What measures is the company implementing to mitigate customer concentration, and are there any plans for geographical expansion or capital expenditure?

Supriya Lifescience Ltd is proactively addressing customer concentration by diversifying its product portfolio and expanding into new markets. We're introducing several new products and therapies, which will effectively reduce our reliance on specific products and customers. Furthermore, we're intensifying our efforts to register our products in regulated markets, particularly focusing on North America and Latin America. Through our recent ENVISA audit clearance with zero observations, we are confident to gain significant traction in these new markets.

In terms of capital expenditure, we have spent about 60-70 CR in CAPEX for putting up Module E which is set to go on stream soon. This will add 350KL to our capacity, nearly doubling it to 900KL. This expansion not only allows us to scale up production for our new products but also opens opportunities for CMO partnerships.

Additionally, we're planning to invest another 60 CR in our Ambernath site to establish a bottling line for a new anaesthetic product we're launching. With the global market for this API valued at USD 300 million, we're confident in the growth prospects associated with this aggressive expansion plan.

What are your thoughts on the outlook for the pharmaceuticals and drugs industry in India?

The pharmaceuticals and drugs industry in India holds promising potential, particularly in the CMO/CDMO space. This sector presents numerous opportunities for growth and expansion, which could significantly benefit various companies. To capitalize on these opportunities effectively, companies must ensure they are equipped with the right regulatory and EHS accreditations.

Establishing a strong regulatory framework and maintaining compliance with relevant regulations is paramount for success in this industry. Additionally, adhering to high EHS standards not only fosters sustainability but also enhances reputation and credibility within the market. By prioritizing these aspects, companies can position themselves favourably to seize opportunities in the CMO/CDMO space and drive growth in the pharmaceutical sector.

The outlook for the pharmaceuticals and drugs industry in India appears promising, provided companies focus on obtaining the necessary accreditations and remain vigilant about regulatory compliance and environmental sustainability.