Getting Back on its Feet

Ipca Laboratories is into pharmaceutical formulations and APIs (active pharmaceutical ingredients). The company is known more for the antimalarial and rheumatoid arthritis solutions. Earlier the company was only into APIs. It has since transformed itself into a complete formulation company, with presence in domestic and international markets. Ipca generates more than 60 per cent of the revenues from exports, with the highest share coming from Europe. From Europe it generated ₹594 crore (18 per cent of the revenues) in FY14. Europe was followed by Africa, with 17 per cent revenue share in FY14. Export formulations accounted for almost 50 per cent of Ipca's revenues in FY14, while the branded generics business accounted for 25 per cent of the exports. Strengths Institutional business: Ipca is the market leader in antimalarial formulations and these constitute 35 per cent of the formulations export of the company. The company has a market share of 34 per cent in this segment. The revenues from the antimalarial segment have grown aggressively at a CAGR of 35 per cent, from an estimated ₹146 crore in FY09 to nearly ₹642 crore in FY14. This segment is the most profitable business for the company. Formulation business: Over the years the company has strategically focused on the finished product formulation business, which has a higher margin than APIs, and managed to grow it by 22 per cent CAGR in the la

This article was originally published on April 01, 2015.