What have been the main milestones from ZIM Laboratories in 2023?

Financial year 2023 has been good for ZIM financially and commercially. Our revenue was at INR 3,985 million; a growth of 19.5% YoY with EBITDA at INR 584 million and PAT at INR 244 Mn. We continued to spend on R&D with expenditure amounting to 6.6% of Total Operating Income.

We progressed on the development of our New Innovative Products (NIP), which are complex generics developed using in-house proprietary technology platforms. We have filed four of these NIPs in Europe and submitted several NIPs in Pharmerging and RoW markets. Revenue from NIP reached INR 184 million for 2023. The Oral thin films business had several milestones; ZIM’s partners obtained four Marketing Authorizations in the Netherlands, Croatia, Czech Republic and Malta for Sildenafil Citrate 50 mg ODS. ZIM and its partners submitted several OTF Dossiers in Pharmerging and RoW markets and ZIM’s partners received approval for Anti-Emetic OTF in Canada.

NIP and OTF business contributed a combined INR 286 million in 2023; about 10% of overall revenue. ZIM – entered into strategic partnerships in Saudi Arabia and Australia to enter into these markets with NIP and OTF products. The business mix also improved with contribution increasing from stable markets like SE Asia. In which therapeutic segments does ZIM Laboratories anticipate growth in the coming years?

ZIM has developed various therapy-agnostic technology platforms, and our product offerings span across various therapy areas like Cardiovascular, CNS, Urology, Gastrointestinal, and NSAID/Pain Management. Initial filings for NIP in Europe have been under the Urology, Gastrointestinal, Skin Disorder, and Anti-Infective therapy areas and we expect early growth to come from these. Our OTF product line has filings under Erectile Dysfunction, Anti Emetic, and Pain Management with commercial orders in the EU already supplied for Sildenafil Citrate 50mg ODS. We have several filings planned under NIP and OTF across multiple therapy areas and revenue contribution from a particular therapy will depend to a larger extent on ease of commercialization and target market opportunity. What are the main challenges and opportunities you anticipate for pharmaceutical companies in 2024?

Some of the challenges that pharmaceutical companies may have to face in 2024 include pressures on pricing because of affordability drives, increasing localization by governments to promote homegrown companies, regulatory tightening, and buyer consolidation which will result in fiercer competition. Additionally, topics to monitor will be changing disease profiles and the emergence of “cures” for chronic conditions like diabetes, as well as geopolitical instability due to increased political polarization, and an aging population with increased mobility and a move towards an emphasis on convenience in healthcare. Which measures are necessary to drive innovation forward within the industry?

I believe multiple measures will drive innovation in our Industry. First, the use of Artificial Intelligence, Data Analytics, and Nanotechnology in rediscovery and repurposing of known pharmaceutical substances for new indications. Second, innovative business models can overcome the challenges mentioned earlier. The industry will also likely witness an acceleration in the discovery of new target sites for hitherto unsolvable aging and metabolism-related conditions presently treated through “management” therapies and the move toward their cures such as cancer, diabetes and alzheimer's. As there is an overall increase in global aging and a general increase in mobility, innovative formulations and technology will be needed to make medication more convenient to match future lifestyles. What will be the main priorities for ZIM Laboratories in 2024?

ZIM will continue to focus on adding new business and increasing revenue through the Developed and Pharmerging markets aiming to increase operating margins and fortify the balance sheet. We will actively expand our global presence and execute multiple filings for NIP and Oral Thin Films in regulated and Pharmerging markets. We anticipate a significant milestone with the impending receipt of our first Marketing Authorization (MA) for NIP and once received, our focus will be on commercialization and supply. We will continue to focus on strategic partnerships, both local and global, as it plays a pivotal role in our growth strategy. These collaborations enhance market access, improve distribution capabilities, and may include joint ventures, leveraging synergies for mutual benefits. In addition to these initiatives, ZIM is focused on the successful completion of ongoing projects that will facilitate entry into regulated and Pharmerging markets like the EU and Brazil.