- The company’s performance for the quarter was affected by headwinds in the pharmaceutical business. But was partly mitigated due to robust performance in the Contract Research and Development Services (CRDS) segment.
- While the Radiopharma business showed improved performance, Generics business was affected by lower volumes due to Import Alert at Roorkee plant, latest sartan impurities issue and pricing pressure in the US generics market.
- API business was affected due to lower volumes resulting from an unplanned plant shutdown during the quarter. Performance of the API business is expected to normalize in Q4 FY22.
- In the Proprietary Novel Drugs business, their lead program – LSD1/HDAC6 inhibitor has successfully received FDA clearance for IND filing and is on track for initiation of Phase 1 trials in Q4 FY22. Additional IND filings for pipeline programs to follow in FY 23.
- Demerger of the API business is progressing well and they have received shareholder and creditors approval. It is expected to complete in Q1 FY23.
- Pharmaceutical revenue was ₹1186 Cr (30% decline YoY). Radiopharma business witnessed improvement in sales YoY, however on a sequential basis performance was lower due to customers order scheduling and the surge in COVID cases in North America, especially in Dec 2021. However, they continue to maintain majority market share
- Spike in COVID cases impacted Ruby-Fill installations during the quarter and pushed out new installs to the 4th quarter. Strong performance on new installs is expected in Q4 as it generally witnesses higher installations.
- Phase 2 and Phase 3 clinical trials for NDA of I131 MIBG are progressing well,
- Allergy Immunotherapy reported robust performance YoY and stable performance sequentially. The business continues to operate at volumes higher than pre-COVID levels
- CMO business revenue was affected as revenue related to COVID related one-off deals tapered off and also because of customer scheduling. In Q3 FY22, they realized ₹80 Cr of COVID related revenue as against ₹200 Cr in Q3 FY21.
- Generics business performance was driven by impurity issues in certain sartan products – which is an industry wide issue, lower volumes due to import alert at Roorkee plant, pricing pressure in the US market and lower Remdesivir sales due to fewer hospitalisations.
- The CRDS business reported a revenue of ₹120 Cr (51% growth YoY) and has a healthy pipeline of new products and new customers for FY23.
- They are witnessing robust volume growth led by higher demand from biotech companies for integrated services, functional chemistry and DMPK, Discovery Biology and Clinical trial data management support through Trial stat, Canada.
- They are ramping up capacity utilization at their state-of-the-art chemistry innovation center at Greater Noida. The facility can support both Biotech and Big Pharma.