Managing Director Yugal Sikri expressed confidence about keeping up the growth momentum.
Increased focus on sales, cost controls and new launches have helped RPG Life Sciences to grow at faster pace in the current financial year, according to Yugal Sikri, Managing Director of RPG Life Sciences.
For the first nine months of FY20, RPG Life Sciences revenues grew at 10 percent year-on-year (YoY) to Rs 287 crore, while the domestic formulation business that constitutes about two-thirds of revenues rose 23.4 percent.
In an interview with Moneycontrol, Sikri expressed confidence about keeping up the growth momentum.
"The focus has been on the profitable products and that's why we see healthy double digit growth even for our legacy products, we also made attempts to rejuvenate our product portfolio. We have launched the biosimilars, we have entered into diabetes area, where we introduced gliptins, we have also identified certain legacy brands and re-launched line extensions in the market," Sikri said.
Sikri, a pharma industry veteran, has led domestic formulation businesses at GSK, Pfizer, Novartis, Ranbaxy/Daiichi Sankyo.
At RPG, he is trying to build a sustainable domestic prescription business growing above the Indian pharmaceutical market.
On future growth strategy Sikri said the company will continue to fine tune the systems and processes, even while focusing on product portfolio rejuvenation.
“Legacy products we are looking at lifecycle management, we are looking at geographic expansion, we are looking at new customer segments for our existing products,” he added.
Sikri said RPG is making dedicated efforts on expanding chronic therapies like Cardiology, Anti-Diabetic, Oncology and Nephrology to accelerate the growth.
The company rely heavily on legacy brands such as Aldactone, Serenace, Naprosyn and Azoran.
On new products, Sikri said the company is focusing on getting a good mix of branded and specialty segment.
"We have launched few products now, we are launching new products, we should continue to maximise sales on the products launched. We are also focusing on biosimilars which are important for our specialty business," Sikri said.
RPG has a portfolio of biosimilars that include monoclonal antibodies like Trastuzumab, Rituximab, Adalimumab and Bevacizumab. The company licenses the products from other companies.
Sikri said there is good traction in biosimilars, despite challenges.
"The challenges which I see (for biosimilars) are competitive intensity, pressure on margins because you are sourcing these products from the other companies, but what is in your favour is the volumes, these are the products where per unit price is high therefore, if you do a good good work in sales and marketing, I think there is there is a good scope and opportunity for you to establish yourself in this," Sikri said.On international formulation business, Sikri said the company will focus on molecules where that have vertical integration in terms of active pharmaceutical ingredients within the company.