Jubilant Life Sciences plans Rs 550 crore CapEx in FY19

Jubilant Life Sciences has earmarked Rs 550 crore for capital expenditure (CapEx) in the current financial year. It is also planning to invest Rs 300 crore in research and development (R&D) in FY19 to meet the increased demand in the businesses. The company will continue its efforts to strengthen its balance sheet by reducing debt and improving financial ratios. The drug-maker is also looking to grow its revenue and operating profits in FY19 and is banking on growth drivers such as specialty pharmaceuticals, active pharmaceutical ingredient (API), and generics and life science ingredients.

In specialty pharmaceuticals, new products and current contracts execution in radio-pharmaceuticals are expected to drive growth, while in API and generics, growth will be driven by higher volumes from new product launches and market expansions and also from initiatives to optimize costs from higher efficiencies. In the life science ingredients segment, will see growth in revenues from new product launches, new orders, new capacities coming on stream, and de-bottlenecking of existing plants. The company is increasing capacity in solid dosage formulations at Roorkee, which is expected to be completed in December quarter to meet the increasing requirements. It is also taking various initiatives to reduce cost from higher efficiencies and also input material cost optimization.

The company has filed 107 ANDAs (abbreviated new drug applications) in the US market, including a mix of solid dosage filings, injectable filings, and NDA and 505 (b) (2) filings, of which 37 are pending approval. They filed two ANDAs during the June quarter and expect to file around 10 ANDAs during the year; and also have a pipeline of at least five products in the radio-pharmaceuticals business which they expect to file and launch in the next few years. Jubilant Life Sciences reported a 39.42 percent rise in consolidated net profit to Rs 200.37 crore for the June quarter. Its revenue from operations also grew to Rs 2079 crore for the quarter, from Rs 1596.05 crore in the same year-ago period.