JB Pharma is one of the emerging drug companies in the cardiology and hypertension segment in India. The Mumbai-based company recently completed the acquisition of four paediatric brands from Dr Reddy’s Laboratories and a cardiac brand from Glenmark Pharmaceuticals.
JB Pharma CEO Nikhil Chopra spoke to Moneycontrol about the company’s plans to enter the fast-growing probiotics and paediatric segments and the niche heart failure segment. Chopra said the company’s accelerated growth strategy looks to not only build upon its core competencies but also leverage its strengths to enter new therapeutic areas. Edited excerpts:
You acquired the Glenmark and Dr Reddy's brands. What was the core idea behind these acquisitions?
Our acquisition story revolves around the portfolios where we are already present and in which we want to expand.
In the paediatrics segment, we acquired around four brands from Dr Reddy’s for a revenue of Rs 35 crore. We bought two big brands at Rs 100 crore. We already had a good starting point in the world of paediatrics as we have created a new business unit for respiratory and paediatrics.
Second classical example is what we did with the portfolio that we acquired from Glenmark. That is the Razel range, which is Rs 60 crore revenue. We now are a dominant player in the world of cardiology with our existing brands like Cilacar, Nicardia and Azmarda and now with Razel, we are at the 8th rank from the 13th rank two years ago and are the fastest-growing company today in cardiology.
The cardiovascular segment remains an important portfolio in India. What are you doing in this area?
Heart failure is the disease of the next decade, with 15 to 20 million patients and only 10 to 15 percent getting treatment.
We have initiated more than 200 heart failure clinics in the country to improve footfalls of patients who are potential sufferers of heart failure – not only stage three and four but also stage one and two. We are working on point of care diagnostics.
So we are taking up a lot of ecosystem building work wherever we are present such as respiratory, paediatrics, and cardiology.
The sales for the chronic segment in the domestic market have increased from 42 percent in FY20 to 50 percent in FY22 and we expect to see further growth.
What has JB Pharma planned for the near future, maybe medium- and long-term goals?
Our first initiative was putting in place heart failure clinics, which will increase to 500 all over the country. In the cardiology space, particularly in the world of hypertension, where the burden of the disease is close to 150 million patients, we are running a consumer campaign called ‘BP right karo.’
If you look at the Indian market, it needs more on-ground fundamental work with respect to diagnosis and adherence, rather than innovations. This is where JB would like to be in the future.
The focus will be on diagnosis, adherence, footfalls of patients who are potential sufferers and go undiagnosed. One in four patients today in India in the world of hypertension is undiagnosed.
In terms of revenue, what is the outlook for the near future?
Today, we are an 8th-rank company in cardiology. We want to be in the top 5, which is not easy, but we are doing fundamental work. We aim to double the revenue in cardiology. In India, in the last three quarters, our revenue per quarter has been close to Rs 400 crore. Two years ago, new product contribution was hardly 1.5 percent of total revenue, which is now 5 percent. We have introduced new products in paediatrics, respiratory, cardiology, nephrology and will continue to scan opportunities.
The Union government recently came out with a plan of research and innovation. How do you see this approach?
JB focusses more on incremental innovation. We have expertise in working with some of the multinational players outside India. We aim to be at 12-13th rank in terms of prescriptions to improve our standing in the chronic market and drive better adherence from patients.
Any acquisitions that you're looking at in the near future?
We continue to evaluate opportunities and see if there are assets available and within the space – paediatrics, cardiology, metabolics, respiratory, anti-infective. So as and when there are assets available in the form of a company or brands, we continue to evaluate them. It takes time and depends on the opportunity and the fit it presents to our portfolio.
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