JB Pharma CEO Nikhil Chopra Talks 12% Growth, M&A Plans, and Market Strategy
Mumbai-based pharmaceutical company JB Chemicals & Pharmaceuticals (JB Pharma) is aiming for a 12% revenue growth in the “short to midterm,” with strong performances anticipated from its domestic business and Contract Development and Manufacturing Organization (CDMO) segments. The company also revealed that it is exploring strategic mergers and acquisitions (M&A) to further enhance its presence in key therapeutic areas.
Solid Growth Forecast Amidst a Subdued Market
In an interview with Moneycontrol, JB Pharma’s CEO and Whole-time Director, Nikhil Chopra, expressed confidence in achieving the growth target, driven by solid performances in both India and the CDMO business. “We expect the business to grow at around 12% in the short to medium term,” Chopra said, noting that the company’s domestic business is expected to grow at 12-14%, while its CDMO space continues to expand.
JB Pharma has also revised its EBITDA margin guidance upwards, now projecting margins to reach 27-29% in the upcoming period, fueled by continued market share expansion and improved cost control measures.
JB Pharma has already made some strides in this regard, with over $200 million invested in acquisitions since 2020 when private equity firm KKR acquired a controlling stake in the company. Notable acquisitions include the Azmarda heart failure treatment from Novartis, probiotic brand Sporlac, and a portfolio of IVF products from Sanzyme. In addition, JB Pharma acquired Razel, a cardiology product from Glenmark, and some pediatric brands from Dr. Reddy’s.
JB Pharma’s domestic business has emerged as a significant growth driver, outperforming the Indian Pharmaceutical Market (IPM) in key therapeutic categories. “Around 70% of our business is concentrated in areas like cardiology, ophthalmology, probiotics, and women’s health, and all these categories are growing faster than the market,” Chopra explained.
Despite a relatively subdued market sentiment, JB Pharma remains optimistic about its ability to continue outperforming the broader pharmaceutical sector. The company expects the market to grow at 7-8%, but its focused approach on progressive therapeutic categories and efficient execution positions it for above-market growth.