RPG LIFE SCIENCES Q2FY24 Earnings Call Highlights
For the H1 period, pharma market has grown at 8%. There has been a pressure on volumes. Volume growth has been ranging between negative growth to a very low single-digit growth. The growth is being driven by price increases.
RPG Life Sciences has registered twice the market growth.
Intend to make sure that modernization capacity expansion plan of both the plants gets over by the end of this fiscal.
Working on over 100 projects on innovation and over 20 projects on digitalization from back end to front end to functions to help pace up growth.
Very actively looking at adjacencies. Also looking at the adjacent spaces, which fall within franchise area. Have a strong nephrology franchise, want to maximize that franchise.
Want to use cash for the purpose of growth. Identified formulations as priority. Have also added now API as M&A focus.
Volume growth of ~8%, price growth is close to 5%+, and the rest is new product's contribution.
Worked on 13 SKUs reformulated that has helped to improve margins. Working on the other efficiency enhancement measures, like yield improvement, that size increase in the manufacturing. Have also optimized the people in the plant set up.
There has been an impact on lower price. Have 2 initiatives there. One, renegotiating the prices with the current vendors, and also have an alternate vendor development program well charted out. That is what is helping to reduce the RM price.
Have built up some inventory at Ankleshwar plant as well as the API plants, which has also added to the inventory.
Year after year, net working capital is improving, both in terms of number of days and percentages. Expect the trend to continue.
Reached almost around 75%, 80% of the consulting physician coverage.
Actively looking at orthopedics because of great performance of Naprosyn, want to develop that franchise.
Immunosuppressant continues to be focused therapy. New product development is happening in the area, and these 4 molecules are, azathioprine, mycophenolate, tacrolimus and cyclosporine.
Also moving into gastroenterology and dermatology, not into the mass one, but the high end one.
Launched a product called sodium valproate PR, long release version. Product has been accepted by the U.K. MHRA. Launched that product in the U.K and have already entered South Africa with that product in the market.
Able to cover 85% to 90% of the universe of the identified customer segment.
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