By: IPP Bureau
Last updated : August 26, 2024 10:00 am
The new Injectable Facility housed in Akums Healthcare started commercial production on 22nd August 2024, with a capacity of 362 million units annually
Akums Drugs and Pharmaceuticals Limited, the largest India focused CDMO with a market share of over 30% in the domestic CDMO market serving 26 of the leading 30 pharmaceutical companies in India, consolidated revenue for Q1 FY25 grew to Rs. 1,019.1 crore, an increase of 5.1% YoY.
The company’s CDMO segment which accounts for 77% of total revenue and 93% of the Adj EBITDA, grew to Rs. 782 crore, an increase of 5.6% YoY. This was driven by strong growth in sales volume of 13.9%. Segment EBITDA also saw margin expansion of 106 bps to 15.5%, growing 13.4% YoY to Rs. 121.2 crore on the back of steady improvement in capacity utilization and better product mix.
Branded and Generic Formulations segment more than doubled its EBITDA YoY, growing to Rs. 17.1 crore from Rs. 7.4 crore. This was driven by improved margins of branded domestic and exports business and curtailed losses in trade generics business.
The API segment saw revenue improvement of 82.6%, while segment EBITDA margins improved to -17.4% from -23.0% in Q1 FY24 as the company continues to strive to achieve break-even in this segment. Debt to Equity improved to 0.25 times with net debt at Rs. 212.8 crore.
Commenting on the financial performance, Sanjeev Jain, Managing Director of Akums Drugs & Pharmaceuticals Ltd. said, “Our Q1 results show our ongoing efforts to optimize our operations and capitalise on our strengths in the CDMO segment. We are committed to driving sustainable growth across all our business segments and delivering value to our stakeholders.”
The new Injectable Facility housed in Akums Healthcare started commercial production on 22nd August 2024, with a capacity of 362 million units annually. Akums already has a significant presence in the injectable CDMO space and this new facility is expected to consolidate its leadership position in the Indian CDMO market.
Further, the board of directors approved a plan to set up two production facilities in Jammu at an overall investment of Rs. 265 crore. These will be multi-dosage facilities across pharmaceutical and nutraceutical products.
Speaking on the company’s plans, Sandeep Jain, Managing Director, Akums Drugs & Pharmaceuticals Ltd. said, “The launch of our injectable facility and the Jammu expansion are key steps in our strategy to enhance our production capabilities. These developments, coupled with our ongoing efforts in R&D and innovation, are aligned with our endeavor to respond effectively to the evolving demands of our clients and the healthcare industry.”
The company has a manufacturing capacity of 49.59 billion units annually spread across 60+ dosage forms. It owns 12 formulation manufacturing units along with three API units with accreditations such as EU-GMP, US NSF, WHO – GMP among others.