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Ajanta Pharma Annual Report 2023 Summary

Updated: Oct 1, 2023

• Ajanta Pharma has been successful in building strong brands across markets, attributing their success to market intelligence, go-to-market strategies, R&D capabilities, and manufacturing infrastructure.

• They have expanded their business into three verticals: Branded Generics, US Generics, and Institutional business for antimalarials.

• Despite challenges in the US Generics business and the unpredictable nature of the antimalarial Institutional business, Ajanta Pharmaceuticals remains strong in the Branded Generics business, which contributed 73% of their revenue in FY 2023.

• They plan to continue growing this segment through increased capital allocation, accelerated product filing, and enhanced ground presence.

• FY 23 was difficult due to high raw material & freight costs, as well as price erosion in the US market, resulting in lowest profit margins in 10 yrs. But they are optimistic about improving margins in the future by focusing on the Branded Generics Biz & normalizing freight costs.

• Ajanta Pharmaceuticals achieved a 12% growth in revenue from operations. However, their EBITDA margin fell to 21%, and net profit for the year decreased by 16% compared to the previous year.

Developed markets are expected to grow more slowly, while growth markets in Eastern Europe, Asia, and Latin America will see both volume and spending increases.

• The USA’s share in global invoice spending is projected to increase, although off-invoice discounts and rebates are expected to lower net level spending. Strong growth is expected in pharmerging markets like China, Brazil, India, and Russia.

• The Branded Generics segment contributed 73% to the company’s total sales in 2023. The US Generics segment recorded 19% growth but faced logistics costs and increased uncertainty. The Africa Institutional(Anti Malarial) business saw de-growth of 8% due to funding uncertainties.

• Material costs increased due to higher API prices, price erosion in the US, and inventory write-offs. Employee expenses and other expenses also increased. EBITDA margin decreased to 21% in 2023 from 28% in 2022 due to higher costs, but the company expects to improve margins..

• Ajanta Pharma remains focused on its Branded Generics business and plans to invest in innovative products. The company anticipates growth in both domestic and international markets, aiming for low to mid-teen growth in the Branded Generics segment.



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