Changing market dynamics
The Pharma market has been impacted by ongoing SARS-COV2 Pandemic and it varied according to the business segments and the model. While Vaccine segment registered multifold growth, the small molecule generic manufacturers faced hiccups in raw material, key starting material or intermediate availability due to global lockdown. However, the pharma market is likely to spring/bounce back and expand as the impact of the virus subsides. In the post Pandemic era, the market is expected to evolve at a rapid pace via adoption of new technologies and business strategies. Portfolio diversification and shift in Business approach is expected, along with upward trend of collaborations/partnerships.
Critical challenges & addressing them to drive the growth of the organization
The pandemic has affected the Raw material trade a lot. Ipca believes that reduced dependence on other nations for APIs, or more importantly drug intermediates, is vital to long term sustenance. Mr. Premchand Godha, Chairman and MD, Ipca Laboratories, during a webinar emphasized on reducing the dependency on other nations for drug intermediates; which are required in much larger proportion than APIs. Ipca is of opinion that to grow whilst remaining competitive in the global Pharma market in longer run, the in-house capability to produce Raw material/Key starting material and intermediates, atleast for high value APIs, is must. Since its inception, Ipca has been working towards strengthening backward integrations to have sustainable future and reduced dependency on imports from other countries.
Growth drivers for your organization
Vertical acquisitions have been notable growth drivers for Ipca. Ipca acquired Ramdev Chemical which produces fine chemicals, drug intermediates and APIs, British pharmaceutical chemistry firm Onyx Scientific, New Jersey based Bay shore Pharmaceuticals LLC, North Carolina API maker Pisgah Labs to name a few. Recently Ipca picked additional stake in Trophic Wellness Pvt Ltd, thus bringing Nutraceuticals too under its ambit. Ipca’s vertical acquisitions based growth strategy is propelled by gap filling of the existing portfolio and fortification of growth drivers.
Further, Ipca continuously explores strategic business relationships with smaller API manufacturers for increasing product basket and also partnering growth with its vendors and suppliers.
Leveraging digitalization to gain competitive edge
It’s digital era, and though considerable working capital is required for continuous tech up- gradation, Ipca firmly believes in leveraging automation and digitalization to gain competitive edge, better returns and long term sustainability. Ipca is of the opinion that cutting edge technology is must for high throughput output and cost-effective viability in near future and hence made significant investments in adopting newer advanced technologies viz.
Future plans (in terms of new products & innovations, investments, capacity expansions & increasing the market footprint etc.
Ipca’s research and development activities are diversified into development of small molecules through chemistry and biotechnology and large molecules, proteins, mainly biosimilar mAbs. Two of its in-house developed mAbs are in manufacturing stage for clinical evaluation. To reduce dependence on cheap raw materials/intermediates from China, Ipca is making a designed approach in continuous process developments and research activities are being further extended to develop high value secondary metabolites with the help of Synthetic Biology and Metabolic Engineering of Eukaryotes. On discovery front, efforts are also in place to repurpose drugs with clear cut objective to either improve their efficacy or finding new therapies. One of such small molecule is in advanced stage of development in collaboration with MMV.
