Strides Pharma Science Limited: history, ownership, mission, how it works & makes money

A Brief History of Strides Pharma Science Limited

Founded in 1990, Strides Pharma Science Limited is a prominent Indian pharmaceutical company headquartered in Bengaluru, India. The company has focused on developing and manufacturing a wide range of generic pharmaceuticals, including formulations and Active Pharmaceutical Ingredients (APIs).

Strides Pharma began its journey with a strong emphasis on research and development, dedicating substantial resources to innovate and create high-quality medicines. By 2000, the company had established its first manufacturing facility in Bengaluru, marked by the receipt of regulatory approvals from various global health authorities.

In 2010, Strides Pharma made a significant milestone by obtaining US FDA approval, allowing it to tap into the lucrative US pharmaceutical market. This year, the company reported revenues of approximately ₹1,500 crores (around $200 million), showcasing robust growth driven by its international operations.

By 2013, Strides Pharma acquired a key subsidiary, Agila Specialties, for $1.1 billion, significantly enhancing its portfolio in the injectable market. This acquisition positioned Strides as a leading player in the specialty pharmaceuticals sector.

In 2017, Strides Pharma achieved a significant milestone with the launch of its biosimilars strategy, aiming to leverage its R&D capabilities in producing high-quality biologics. The company reported a consolidated revenue of ₹2,500 crores (approximately $350 million) for the fiscal year 2017.

As of the end of the fiscal year 2022, Strides Pharma posted revenues of ₹3,700 crores (around $500 million), a compounded annual growth rate (CAGR) of approximately 15% over a five-year period. The gross margin stood at approximately 56%, driven by operational efficiencies and a diverse product mix.

In the fiscal year 2023, Strides Pharma achieved a consolidated net profit of ₹300 crores (approximately $40 million), reflecting a profit margin of around 8%. The company's continuing efforts to expand its geographic footprint saw it enter new markets in Africa and Latin America.

As of October 2023, Strides Pharma's market capitalization stood at approximately ₹6,000 crores (around $800 million). The stock has demonstrated modest performance, with a year-to-date increase of approximately 12% amid bullish market conditions.

Strides Pharma continues to invest heavily in R&D, with around 10% of its annual revenue allocated to this crucial area, reaffirming its commitment to developing innovative therapies and next-generation medicines.

The future outlook for Strides Pharma remains positive, with analysts projecting a revenue growth rate of approximately 10%-15% annually over the next five years, driven by new product launches and strategic partnerships. The company's diversified portfolio and expansion into high-growth markets position it well within the competitive pharmaceutical landscape.

A Who Owns Strides Pharma Science Limited

Strides Pharma Science Limited, incorporated in 1990, is a global pharmaceutical company headquartered in Bangalore, India. As of the latest reports, the company operates in various segments, including formulations, APIs (Active Pharmaceutical Ingredients), and biosimilars. The ownership structure reflects a mix of institutional and retail investors, alongside significant holdings by company founders and management.

The following table illustrates the ownership distribution of Strides Pharma Science Limited based on the latest available data:

As of the latest data, the Promoter group retains the largest stake with 40.76% of the total equity, indicating substantial control over the company's strategic decisions. Major promoters include:

• Vivek B. P. Choksi - Managing Director
• Yogesh K. Choksi - Executive Director
• Vivek B. P. Choksi's Family Trust

Institutional investors hold about 22.15% of the shares, with significant contributions from various mutual funds and foreign investors. This portion showcases the confidence that institutional players have in Strides Pharma's growth trajectory and operational efficiencies.

Strides Pharma's shares are actively traded on the NABERS and the NSE with recent stock performance reflecting its market standing. For the fiscal year ending March 31, 2023, the company reported a consolidated total revenue of INR 3,350 crores (approximately USD 450 million), with a net profit of INR 350 crores (approximately USD 47 million).

The market capitalization of Strides Pharma Science Limited as of the latest trading day is approximately INR 8,500 crores (roughly USD 1.15 billion), confirming its position as a significant player within the Indian pharmaceutical landscape.

The distribution of share ownership, along with the company’s robust financial performance, underlines the solid backing of both institutional and retail investors, which fosters a credible operational environment for Strides Pharma Science Limited.

Strides Pharma Science Limited Mission Statement

Strides Pharma Science Limited, a global pharmaceutical company, emphasizes its mission to improve healthcare by providing high-quality, affordable medicines. The company is committed to research and development to enhance therapeutic options while maintaining sustainability in its operations.

As of the latest financial reports, Strides Pharma achieved a total revenue of ₹2,911 crore (approximately $387 million) for the fiscal year 2023, reflecting a year-on-year growth of **11%**. The company operates in multiple segments, including formulations, APIs, and contract manufacturing.

Strides Pharma’s mission also includes a commitment to excellence in operational efficiency. The company operates with over **1,000** employees across its various facilities around the globe, striving to create a work environment that fosters innovation and teamwork.

Moreover, Strides Pharma focuses on ensuring compliance with global regulatory standards, demonstrating its dedication to safety and efficacy in its products. The company holds **over 80** regulatory approvals from prestigious authorities such as the US FDA, EU, and TGA, which validate its commitment to quality.

Strides Pharma also targets expanding its reach into emerging markets. In FY 2023, the company reported an increase in exports contributing to **55%** of its total revenue, underscoring its mission to be a significant player in the international pharmaceutical landscape.

The company aims for continuous improvement in its pipeline, currently holding over **23** projects under development that are anticipated to support its long-term growth strategy and mission. Strides Pharma remains focused on addressing unmet medical needs while maintaining fiscal responsibility.

With a robust supply chain and a commitment to sustainability, Strides Pharma is dedicated to its mission of accessibility and quality healthcare, playing a critical role in the global pharmaceutical industry.

How Strides Pharma Science Limited Works

Strides Pharma Science Limited is a leading pharmaceutical company based in India, primarily focusing on the development, manufacturing, and distribution of generic pharmaceuticals. As of the end of the fiscal year 2023, the company reported a consolidated revenue of ₹2,036 crores and a net profit of ₹220 crores, marking a year-on-year growth of approximately 8% in revenue.

The company operates through multiple segments including formulations, APIs (Active Pharmaceutical Ingredients), and contract manufacturing. Strides export products to over 100 countries, with significant markets in the United States, Europe, and Africa. As of September 2023, the company holds a portfolio of more than 500 products across various therapeutic areas.

Strides has a strong emphasis on research and development, with an annual investment of around 6-7% of its revenue allocated to R&D activities. The company has established state-of-the-art manufacturing facilities that comply with global regulatory standards like the USFDA, EMA, and TGA. As of 2023, it operates seven manufacturing plants located in India, Singapore, and Africa.

In terms of financial performance, as of Q2 FY2024, Strides reported:

Strides has made strategic acquisitions to enhance its capabilities. Notably, in late 2022, the company acquired a portfolio of generic drugs from a European pharmaceutical firm, strengthening its foothold in the European market. This acquisition is expected to contribute an additional ₹300 crores in annual revenue.

The company's stock performance has also shown resilience. As of October 2023, Strides Pharma's share price was approximately ₹450, reflecting a 15% increase year-to-date. The market capitalization stands at around ₹4,500 crores, driven by strong operational performance and investor confidence.

Strides Pharma engages in various collaborations with global healthcare companies to expand its product offerings. In 2023, the company entered into a partnership with a leading US-based biotechnology firm to co-develop a novel therapy aimed at chronic diseases. This collaboration is anticipated to facilitate entry into high-growth therapeutic segments.

Furthermore, Strides is focusing on digital transformation initiatives to streamline operations and enhance supply chain efficiency. This includes the implementation of advanced data analytics tools to optimize inventory management and forecast demand accurately.

In summary, Strides Pharma Science Limited operates through a multi-faceted approach that combines innovation, strategic acquisitions, and robust manufacturing capabilities, positioning it as a key player in the global pharmaceuticals market.

How Strides Pharma Science Limited Makes Money

Strides Pharma Science Limited, based in Bangalore, India, generates revenue through a diverse portfolio of pharmaceutical products, which are segmented primarily into formulations, Active Pharmaceutical Ingredients (APIs), and contract manufacturing. As of the end of FY2023, Strides reported consolidated revenues of ₹3,037 crore, representing a growth of approximately 20% year-on-year.

The company's revenue can be broken down into various segments:

Formulations are the primary driver of Strides' revenue, with key therapeutic areas including anti-retroviral (ARV), oncology, and cardiology. Notably, Strides holds a significant position in the ARV space, supplying products globally, especially in emerging markets. The company operates five manufacturing facilities, which are compliant with US FDA and other international regulatory standards, enabling it to export products to over 100 countries.

In FY2023, Strides reported an EBITDA of ₹670 crore, resulting in a margin of 22%, highlighting the company's operational efficiency. The strong performance in the formulations segment contributed to this margin, driven by the launch of new products, cost optimization initiatives, and improved manufacturing processes.

The revenue mix also illustrates an increasing focus on the US and regulated markets, which contributed around 57% of total revenue in FY2023 compared to 52% in FY2022. This strategic shift is reflective of the company's growth strategy, which emphasizes higher-margin products and markets.

Strides also continues to innovate in the biosimilars space, with plans to launch biosimilars that could significantly augment its revenue streams within the next few years. The global biosimilars market is projected to grow at a CAGR of approximately 30% through 2027, presenting substantial opportunities for growth.

Additionally, Strides has been focusing on strategic partnerships and collaborations, which further enhance its revenue-generating capabilities. The recent partnerships with international pharmaceutical companies to develop or co-market products have proven beneficial. Such collaborations are expected to add ₹200 crore to the top line in the coming fiscal year.

In terms of financial health, Strides Pharma maintains a robust balance sheet with a net debt of ₹950 crore as of March 2023, resulting in a debt-to-equity ratio of 0.5. This financial stability supports ongoing investments in R&D and expansion, critical for sustaining revenue growth in the long term.

Overall, Strides Pharma Science Limited's revenue generation strategy is characterized by its diverse product portfolio, operational efficiencies, market expansion, and strategic partnerships, all of which position the company for continued financial success.