2⃣ Neuland has been slowly carving its revenue mix to higher margin CMS business for innovator companies where its CMS revenue share has increased from 15% in FY19 to 37% in FY23
3⃣ Despite a tough year, Neuland did well with a 26% topline growth driven by 57% growth in CMS business
and EBITDA margin went up from 15% to 23% due to higher CMS share
and EBITDA margin went up from 15% to 23% due to higher CMS share
4⃣ Successful commercialization of molecules in CMS has led to this performance and expected to drive recurring revenue unless drug is not commercially successfully, however, non-linearity of business will continue.
5⃣ Key trends - Quality and compliance is becoming more important than unit cost, American companies looking for more predictable alternative and India, seen as a more stable option, Drug development by biotechs driving 2/3rd of R&D pipelines
6⃣ Europe is emerging as a strong competitor in API space against general perception
7⃣ Triggers for growth in FY24 - Recently commercialized molecules, 2 more molecules expected to be commercialized in coming year, market penetration of some of specialty molecules, operating leverage from Unit III
8⃣ API CDMO market expected to grow at 7% CAGR till 2030. Growth in biotech spending to reduce with respect to prior years but still expected to grow at 7.5-10% CAGR
9⃣ Specialty medicine share in developed nations expected to increase further
🔟 Some dope on various business segments
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