We’re targeting untapped potential in antibiotics, paediatrics and infertility, says JB Pharma’s top exec

In a recent paper, investment banking and capital markets firm Jefferies said JB Chemicals, the pharmaceutical company that dominates therapy in cardiac and gastroenterology segments, is expected to outperform the industry. Jefferies identified life cycle management of key brands, synergistic acquisitions, and targeted new launches as the key drivers of this growth. In an exclusive interview with BT, Nikhil Chopra, CEO of JB Pharma, talked about the company’s growth, focus areas, expansion, investment plans, and execution strategy. Edited excerpts:  

BT: How has the company grown in the past few years and what are your target areas?  

NC: Marketing formulations is our core business in India. Earlier, we focused on five brands in the area of hypertension, namely Cilacar, Nicardia, Rantac, and Metrogyl, which contributed 70% of our revenues. However, over the past 2.5 years, our business has doubled in India alone, reaching approximately Rs 1,700–1,800 crore, thanks to new product launches, lifecycle management, and incremental innovation.  

We expanded our portfolio with launches in cardiology, paediatrics, respiratory, and neurology. The contribution of these new products has risen to about 5% from 1.5% earlier. We have also acquired Sanzyme, a company that specialises in probiotics, women’s health, and infertility. With this acquisition, we aim to tap the potential of probiotics, particularly through our flagship brand Sporlac, which focuses on gut health. We also acquired Azmarda, a brand for heart failure, which positions us strongly in the cardiology market. Our goal is to become one of the top five players in cardiology, with a specific focus on hypertension, heart failure, cholesterol, and lipid segments. We aim to maximise Sanzyme’s potential in probiotics, antibiotics, women’s health, and infertility segments. We believe there is significant untapped potential in these areas. Additionally, paediatrics is another segment we are targeting, as there are around 30,000 practicing paediatricians in the country. 

BT: What was the rationale behind the recent mergers and acquisitions and how they align with your growth strategy? 

NC: Our acquisitions are strategic in nature, aiming to strengthen our product portfolio and market presence. This acquisition allowed us to tap into the underpenetrated potential of Sanzyme’s brands and leverage the co-prescription opportunity with our existing antibiotics. Similarly, the acquisition of the brand Azmarda for heart failure complemented our existing cardiology portfolio and positioned us as the second brand in the heart failure segment. These acquisitions have not only doubled our revenue in these segments but also enhanced our market ranking. Our approach to acquisitions includes assessing payback periods, synergies, and strategic alignment. We aim to grow acquired assets and focus on improving their performance within a reasonable payback period.  

BT: What are your investment plans? 

NC: We have expanded our research and development (R&D) team, with a focus on developing new products and improving our R&D expenditure. In terms of international markets, our presence in the US is primarily through partnerships with companies like Rising Pharma. We aim to file more ANDAs (Abbreviated New Drug Applications) in the US and gradually expand our product portfolio. We are also planning to launch over a dozen products in the rest of the world (ROW) markets. 

Furthermore, we are the third-largest manufacturer of lozenges globally, and we aim to explore new opportunities in the field of lozenges, such as sleep disorders, motion sickness, and dry mouth. Our investment plans prioritise growing our domestic formulation business and strengthening our Contract Development and Manufacturing Organization (CDMO) capabilities. 

BT: How has JB Pharma performed in different markets? 

NC: India has been the primary driver of our growth; we have doubled revenue through organic and inorganic means. Our ROW market and CDMO business have also shown promising growth, with double-digit revenue increases. As the third-largest manufacturer of lozenges globally, we have manufactured and sold billions of units, catering to the cough and cold market outside India. We are optimistic about the growth potential in these areas and aim to increase the overall contribution of these businesses to 75-80% of our revenue. 

BT: Are there any specific regions or markets that JB Pharma aims to prioritise or enter? 

NC: We are exploring opportunities in markets such as the MENA region, Brazil, and Mexico in the ROW segment. While we already have a presence in Russia and South Africa, we may consider opening subsidiaries in new locations. We also see potential in Saudi Arabia for our US portfolio. 

However, India remains our primary focus, and we aim to maintain our domestic market’s contribution at 45-55% of our revenue. We strive to strengthen our presence in metropolitan cities like Mumbai, Delhi, and Chennai, alongside our strong presence in Uttar Pradesh, West Bengal, and Kerala. Our goal is to become a top player in cardiology and rank among the top 12 pharmaceutical companies in the country. We aim to be among the top 12 pharmaceutical companies in India and increase our revenue from Rs 3,000 crore to Rs 5,000 crore, with further aspirations to reach Rs 6,000 crore. We aim to double the revenue from brands like Azmarda and Razel, which we have acquired, and increase the contribution of new products to 7-8% of our overall revenue.