Orchid Pharma Q4 Results Review - Foray Into Branded Formulations: Systematix

Systematix Research Report

Orchid Pharma Ltd. Q4 FY24 revenue were in line with our expectation, but 14% lower than consensus expectations. Q4/FY24 revenue and Ebitda grew 3.4% / 23% and -27% / 31% YoY respectively. The YoY decline in Q4 Ebitda numbers was on account of a lower gross margin (237 bps).

Going forward, we expect Orchid Pharma to deliver high teen’s revenue growth in FY25, led by improved utilisation of the recently commercialised sterile block. In H2-FY25, the company will also be commercializing new capacities on the oral API front, which should incrementally add to growth in FY25 and FY26.

On top of these capacity driven opportunities, royalties from commercialization of recently approved new chemical entity - Enmetazobactam in U.S. and Europe should also start coming in.

Enmetazobactam launch in Europe and U.S. is expected from Q2 FY25. Orchid Pharma is also preparing to forward integrate into the hospital focused antibiotic branded formulation market in India with its own sales force (expected Q2 FY25 onwards).

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