LAURUS LABS Q4FY22 Earnings Call Highlights
Confident of a billion dollar sales
Disruptions in supply chain and logistics increased.
FY22 was an important year as invested in capacities across segments.
Remain affirmative on $1bn revenues in FY23.
healthy growth in formulations of +13% YoY for FY22.
Received final approval for Lopinavir+Ritonavircombination and launched in US market.
Laurus to make Paxlovid.
Filed 31 ANDAs in US. Approach remains Product specific, not market specific.
ARV business saw healthy improvement in procurement during the quarter with revenue growing +47% QoQ.
Increased Reactor volumes to ~6 million Litre and expect FDF capacity to reach 10 billion units before June’22.
Ready to commercialize sterile R&D unit in this quarter.
Laurus has one of the largest high potent API capacities in India.
Other APIs to report healthy growth in FY23.
Total of 73 DMFs were filed as on Mar-22 (vs. 61 in FY21).
Capex on Multi-year Contract (signed in Q2) on fast-track. Molecule is commercialized.
Commercialized LSPL unit 1 during Q1FY22. Greenfield investment to set up a dedicated R&D center (FY23) and three manufacturing units on track (FY24/25).
Laurus Bio revenues improved over 40% QoQ to ₹ 35cr fueled by new capacities getting operational.
Gradually ramping up on the 180KL fermentation capacity with our large scale CDMO partners. Full operational benefits of new capacities to reflect in FY23. Continue to work on Improving Products offering and Improving Go-to-market by leveraging relationship. In Process to acquire Additional land parcel with a plan to create close to 1 million liters fermentation capacity in Phase 1.
Don’t foresee ARV API & Formulation prices to go up, would be stable, this is a new base.
Taking debottlenecking measures in Laurus Bio R1 & R2. No plans to go into Therapeutic proteins till FY25. 1 million litres fermetation capacity is for food proteins.
Capacity shared between generic api and cdmo currently. Now building greenfield capacity solely for CDMO. 550KL+ dedicated capacity.
Other current liabilites higher due to higher purchases in Q4.
ARV API & Formulations contribute close to 55% of revenues in FY22.
Revenue contribution of ARV to come down.
Need 3 things to achieve any target:- Product, capacity and market.
May spend 2000-2500Cr on CAPEX in FY23/24. Increased CAPEX guidance because of robust opportunities.
Margin aspiration at 30%.
Have land to set up facility for Sterile products manufacturing.
No ideas yet on investing more on ImmunoACT.
Except ARV API and some formulations, other segments will grow well.
Non ARV API running at optimum capacity.
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Doing wonderful job👍