Jubilant looks ahead to robust sales growth

Jubiliant is expecting a huge positive turnaround in its growth on the back of its life science products, services and business

Jubilant Life Sciences Limited (formerly Jubilant Organosys) is an integrated pharmaceutical industry player that provides custom research and manufacturing services (CRAMS) and drug discovery and development services to 60 countries. The firm boasts of 10 world-class manufacturing facilities and a team of around 5,700 personnel across the globe.

In FY 2010-11 the company recorded revenue of 3,433 crore in its products’ business, fueled by a robust volume growth of 16 percent across all products. However, the growth in drug discovery and development solutions (DDDS) business remained muted. The business clocked only 210 crore for FY 2010-11 from the drug discovery and development services’ business, Jubilant reported a decrease of 15.76 percent as compared to 249.3 crore in FY 2009-10. The company attributed the decline to delays on boarding of new integrated programs from key customers, postponement of milestone payments and slowdown in clinical research business due to global pharma consolidation.

The DDDS group within Jubilant constitutes three of its subsidiaries, Jubilant Biosys, Chemsys and Clinsys Clinical Research. The DDDS group leverages its capabilities in emerging markets for a global outcome thus accelerating global drug development efforts. The group employs over 1,000 highly skilled and experienced scientific and medical personnel spread across Bangalore and Noida in India, Europe and the US.

Jubilant’s therapeutically aligned clinical development capabilities provide collaborators a seamless transition from preclinical, translational and early stage development. This is further augmented by Jubilant’s ability to provide global access to late stage development (phase II-IV) across Europe, US and India.
Jubilant is highly optimistic regarding its future as its services’ business is likely to witness substantial turnaround in margins and sales growth due to on-boarding of new projects and strong order book for products.

In August 2010, the company signed a long term contract, valued at $51 million, in its CRAMS business with a leading US life science company. Jubilant also signed a long term contract in its CRAMS business with another US-based firm in the same month, with the expected contract valued at $33 million for the initial term of four-and-a-half years.

To focus completely on its life sciences business, the company changed its name from Jubilant Organosys to Jubilant Life Sciences in Oct 2010 and subsequently in Dec 2010, the company went for the demerger of its agri and performance polymers business. According to Mr Shyam S Bhartia, chairman & managing director and Mr Hari S Bhartia, co chairman & managing director, Jubilant Life Sciences, “In FY2012, we expect to deliver a robust sales growth and better margins across all the businesses on account of increased capacity utilization, commissioning of new plants, innovation led new launches and expansion of market geographies.