Published: 07th Aug 2024
By: Value Research
Major pharma API manufacturers have seen their growth moderate after the Covid peak, except for Neuland Laboratories that has been resilient against industry downturns.
Since FY21, its annual revenue & operating profit have grown remarkably by 18% and 55%, respectively, against sluggish industry growth. Its stock, too, skyrocketed 2.5x in the last year!
While generic API makers were pressured due to price erosion & demand slowdown post Covid, Neuland’s solid growth came from its pivot to custom manufacturing services (CMS).
Under CMS, it is producing high-margin complex APIs uniquely tailored for each client. This has boosted its operating profit margins from 10% in FY20 to 26% in FY24!
It is among the fastest-growing Indian pharma companies, but can its growth hold up? What are the risks that plague its prospects? Head to our story & find out. Click the link below.