In today’s briefing:
- Ajanta Pharma (AJP IN): Starts FY24 With Healthy Branded Generics Growth and Improving Margins
- Pre-IPO Beijing Yuanxin Technology Group – Some Points Worth the Attention
- Viatris Inc.: Unveiling the Power of Popular Brands like Lipitor and Lyrica! – Major Drivers
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Ajanta Pharma (AJP IN): Starts FY24 With Healthy Branded Generics Growth and Improving Margins
- Ajanta Pharma (AJP IN) reported better-than-expected profitability in Q1FY24, due to softening of raw material prices and normalization of freight rates. EBITDA margin expanded 300bps YoY to 26%.
- Revenue increased 7% YoY to INR10B, driven by superior execution in branded generics business and lesser price erosion in the U.S. 73% of the total sales came from branded generic.
- Management maintained mid-teen revenue growth and EBITDA margin guidance of ~25% for FY24. Ajanta Pharma has a positive business outlook due to growing branded generic business and niche U.S. launches.
Pre-IPO Beijing Yuanxin Technology Group – Some Points Worth the Attention
- Yuanxin’s financial performance has not improved and it is still in a state of continuous loss. At such low gross margin level, Yuanxin will find it difficult to make money.
- As China’s retail pharmacy market has entered a new era of integration as the industry growth is slowing down, the challenges Yuanxin has to face would be different from before.
- When the market pattern has been basically determined, Yuanxin has little chance to break through. Being acquired may be a better outcome. If IPO, valuation would be lower than peers.
Viatris Inc.: Unveiling the Power of Popular Brands like Lipitor and Lyrica! – Major Drivers
- Viatris Inc. delivered mixed results for the previous quarter, with revenues above the analyst consensus.
- The company exceeded its expectations in the quarter, delivering total revenues of $3.9 billion, or about 2% year-over-year growth on an operational adjusted basis, as well as adjusted EBITDA of $1.3 billion and free cash flow of $447 million.
- Tyrvaya’s bridge program was improved during the quarter to boost value per script and produce the greatest quarterly TRx launch.