Shares of mid-tier pharma company Dishman Pharmaceuticals and Chemicals have continued their outperformance this year, gaining 27 per cent, against just over 3 per cent in the broader Nifty. This extends its gains to nearly 90 per cent in the past one year.
Shares of mid-tier pharma company Dishman Pharmaceuticals and Chemicals have continued their outperformance this year, gaining 27 per cent, against just over 3 per cent in the broader Nifty. This extends its gains to nearly 90 per cent in the past one year.
The company's top management said its new strategies have started yielding results and will be reflected in their revenues next financial year.
Dishman Pharma, which earlier used to offers outsourcing services to big pharma companies in US and UK, is now also targeting mid-sized pharma companies, who are active into research and development work as these companies offer big margin, said Arpit Vyas, managing director of Dishman Pharma. (Watch interview)
"We have added 10-15 small biotech clients under our belt... the strategy is working out very well for us. It will yield quite a lot of revenue. Next financial year you will see quite a lot of revenue coming from these small and mid-sized biotech companies," said Mr Vyas.
The company is targeting a revenue growth of 10-15 per cent in FY16. Dishman Pharma had guided for revenue of Rs 1,500 crore in FY15. Mr Vyas said it is on track to achieve their guidance in FY15.
The company has already achieved revenue of Rs 754 crore in the six months ended September 30, 2014, which is an increase of 14 per cent year-on-year. Dishman Pharma reports its third-quarter numbers on February 13.
Dishman is also banking on new product launches. "We have around 8 products, which are already into near commercial stage, if the launch is successful we might be targeting for revenue growth of 20 per cent," added Mr Vyas.
Dishman primarily provides outsourcing services for Active Pharmaceutical Ingredients (API) to large pharma companies and help them in commercialisation of those products.
Mr Vyas said US Food and Drug Administration (FDA) regulations are getting stronger day by day, so big companies in US want to work with those suppliers that can pass the US regulator's audits. This provides a good opportunity for us, he added.
Mr Vyas said its R&D work for other companies will have EBITDA margins of around 25-30 per cent and the commercial work would have around 25-40 per cent. The company expects overall EBITDA margin of 30 per cent this year.
Shares in Dishman Pharma ended 0.97 per cent higher at Rs 161.40 apiece, outperforming the broader Nifty, which closed 1.56 per cent lower.
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